Talking specifically about used car loan trends in 2017, the demonetization drive in India has positively affected the demand for used car loans. This is so, because, demonetization has affected the sale of used cars mainly by unorganized players as the unorganized or unauthorized dealers of used cars mostly conducted cash-based transactions. However, the authorized dealers largely remained unaffected as most of their transactions were based on bank transfers or loans obtained from banks or non-banking finance companies. This has led to increasing demand for used car loans. Used car loans are being offered by many banks and non-banking finance companies such as HDFC Bank, SBI, Axis Bank, Kotak Mahindra and much more; and Tata Capital is one of the major players in the segment of offering used car loans. Alongside being a trustworthy company, there are many benefits of Tata Capital car loan. They offer a variety of used car loan thereby enabling you to buy your dream car that could range from a small car to an SUV, including luxury cars. Tata Capital has enhanced itself technologically to ease the process of loan application and loan disbursement. Tata Capital also provides very competitive rates of interest on an a used car loan that considerably lowers the total loan amount thereby decreasing EMIs too. Most lenders prefer to offer a used car loan of up to 80%, whereas Tata Capital offers loan of up to 90% of the cost of the car. The best and the most helpful of all the factors is the provision of customized loan repayment schedule. Yes, Tata Capital gives borrowers the option of customizing the loan repayment schedule as per their convenience. Some of the existing schedules are Step-Up (EMIs increase gradually), Step-Down (EMIs reduce every year), Bullet Payment (allows prepayment in parts, at periodic intervals), and Ballooning Option (lower EMIs with bigger payment in last EMI).
The growth and potential of used car market have been well-acknowledged by automobile giants and this has also led them to introduce an exclusive business line of pre-owned cars. Some of the the popular names are Maruti True Value, Mahindra’s First Choice, Tata Motors’ Assured, Hyundai’s HPromise, and Renault’s Selection including pre-owned cars segment of Audi, BMW, and Mercedes-Benz. In addition to this appreciation, if the proposed uniform tax laws across all states get implemented then the process of selling and registration of used cars will become all the more simple and economical. Thus, indicating an upward trend for both – used cars and used cars loan.