What You Should Know Before Applying for a Used Car Loan

Posted on Tuesday, November 28th, 2023 | By IndusInd Bank

A cost-effective method to purchase a car is to take a used car loan. It is important to look at interest rates, determine the car’s market value, know your credit score and look at all aspects of such loans. IndusInd Bank’s pre-owned car loan offers you end-to-end service, quick disbursement, competitive interest rates and up to 100% financing options.

Owning a car is a near-universal dream in India. However, not everyone in India has the means to purchase a brand-new vehicle. In such situations, buying a used car can be regarded as an economically favourable option. The demand for used cars has led to an unprecedented growth in this sector. Pre-owned cars are rapidly beginning to outpace the sale of new vehicles, and the market is expected to rise by 12-14% compound annual growth rate (CAGR).

Applying for a used car loan prevents your purchase from becoming a financial burden. Before you apply for a used car loan, there are several key aspects to consider. In this blog post, we shall explore what you need to know, to help you make an informed decision when you apply for a used car loan.

1. Know Your Credit Score

Your credit score plays a significant role in loan approval, and will affect the interest rate you will be offered for your pre-owned car loan. If you have a score of 750 and above, you are likely to qualify for better loan terms. If it is lower than 650, you may still be eligible, but might face higher interest rates.

2. Determine the Car’s Market Value

The value of a used car is typically determined taking the type and age of the vehicle, mileage, the state of its body, engine, gears, and other mechanical components into consideration. Therefore, it is important to make sure that the car you choose is in good condition. Used car loans are typically offered in keeping with this assessment rather than on the actual cost of the car.

3. Examine the Interest Rates Offered

Interest rates vary from lender to lender, based on factors like the age of the vehicle you wish to purchase, your credit score, loan amount, and tenure. Make sure to compare rates from multiple lenders to secure the best rates for yourself.

4. Choose Your Loan Amount with Care

There are several elements of a pre-owned car loan that you need to pay careful attention to. Begin by determining the loan amount you need to borrow. Consider how much you can comfortably afford to pay each month. Carefully plan out your loan tenure, as this will determine your EMIs, and a longer tenure may lower your monthly payments, but result in higher interest payments over time.

Why Get an IndusInd Bank Used Car Loan

IndusInd Bank is a leading player in the pre-owned car loan market, and offers consumers some of the best-in-the-industry terms and conditions. Let us examine the key benefits of an IndusInd Bank pre-owned car loan.

• Discover some of the most attractive used car loan offers. You may also estimate your monthly repayments with the handy used car loan EMI calculator.
• Benefit from straightforward eligibility criteria, minimal paperwork, doorstep banking assistance, and a speedy disbursement process.
• The bank provides an exhaustive string of services, from researching the preowned car you wish to purchase to finalising the deal and transferring the title, ensuring a hassle-free process.
• Secure up to 100% financing for your pre-owned car loan, up to INR 25 lakhs, subject to factors such as vehicle cost and credit parameters.
• IndusInd Bank offers flexible loan repayment tenures, typically ranging from 1 to 4 years for used car loans. Choose a tenure that aligns with your financial goals and monthly budget.

Applying for a used car loan with IndusInd Bank is a significant step towards owning the car of your dreams. Offering unmatched interest rates, and helpful end-to-end service, an IndusInd Bank pre-owned car loan is approved through a quick, transparent process, ensuring your path to car ownership is smooth and hassle-free.

Your perfect car is merely a click away, apply for a used car loan with IndusInd Bank today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.