In last few years, there has been a growing trend among the people to regularly upgrade their cars after using them for few years. What this does is that it has exponentially grown the used car market. And since used cars offer a good value for money option, many people do not hesitate in going for old cars. Unlike earlier, the lenders are also willing to help buyers buy these cars through used car loans.
Tata Capital offers loans to purchase a wide variety of cars ranging from small hatchbacks to SUVs and luxury cars. By using technology, the entire process of loan application and disbursal is done in a very quick and transparent manner.
Like any other loan, the most important criteria is the rate of interest being offered. Tata Capital offers used car loans at very competitive rates. A lower interest rate means comparatively lower EMIs for the same tenure. This helps borrowers save thousands of rupees in interest if one was to consider the entire loan duration.
Large banks tend to avoid lending for used cars and even when they do, the terms are not beneficial for borrowers. Mostly, banks want a down payment of upto 20% from borrowers. But if one avails used car loan from Tata Capital, it’s possible to get a loan of upto 90% of car’s valuation. This means that only 10% is to be brought in by the borrower as down payment.
The loan can be availed for a period of upto 5 years. This is unlike most lenders who are only willing to lend for upto a maximum of 36 months. Tata Capital also gives borrowers the option of customizing their loan repayment schedule as per their convenience. Some of the innovative options being offered 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).
It is also possible to benefit from Tata Capital’s existing partnerships with major car companies like Nissan, Fiat, Chevrolet, etc.
