Do you know everything about a Used Car Loans?
These are loans provided by banks and other financial institutions for the purchase of used cars by the applicants. The loan is given to a person after carefully accessing their credentials that are based on the business and profession and any other income sources. A person can use this loan for any buying a used car, unlike personal loans where it can be used for marriage expenses, vacation expenditure or paying the debt.
The used car is the collateral security needed for this loan. The Span of the loan repayment differs from twelve months to sixty months depending on the principal amount and EMIs.
The rate of interest will range from 15% to 28% varying from one bank to another. Around 2% of the total loan amount will be charged as a loan processing fee. Normally, banks rules will prohibit the prepayment of the loan for initial 6 months; or 2% to 4% of an outstanding amount will be charged as a prepayment fee.
EMI begins once disbursement of the loan is made. Not all banks provide the used car loans and you need to check with the banks. To understand the Indian banking system better let us have a look at some of the interesting facts of Indians banking system which are very important.
Interesting Facts on Banks in India Facts on Banks in India
- Official Hundies bore the images of British monarchs such as Queen Victoria
- The Bank of Hindustan was the first bank established in 1770 and was managed by Europeans
- Banks in India are regulated by the Reserve Bank of India
- The Indian One Rupee note is signed by the Indian Finance secretary
- The Indian Rupee was used as a currency in other countries as Uganda, Kenya, Qatar during in the early 20th century
- The first five note Rupee bore the portrait of King George VI
- 10 000 rupees is the highest denomination that the Reserve Bank of Indi has printed
- The General Bank of India and the Bank of Hindustan are no longer operating
- 94 banks failed during the first world war (1914 – 1918)
- The Indian currency note has a Braille feature for the visually impaired
- Indian notes have Hindi and English on one side and 15 other languages on the reverse side
- You can exchange a torn note with a new one at a bank
- Applicant should not be less than 21 years of age.
- At the time of loan maturity, the application is not expected to have exceeded 70 years of age.
- The applicant, if self-employed should not be below 18 years of age.
Calculation of loan eligibility amount:
- There is a requirement of a minimum annual salary of Rs. 2.4 Lac for the salary earners.
- For the self-employed, the applicant must have a minimum of three years of continuously being employed in the same business establishment.
The Down requires a minimum of 15% of the on–the–road value of the vehicle.
- A tenure scheme of 5 – 7 years in duration is widespread.
Interest rate bank wise:
Used car loans are usually 3% higher in its interest rate than new cars. It has an average range of 15% – 17.5% interest rate.
Top five banks providing credit loan:
Car Loan, Car Loan, Car Loan
So do not wait any longer just go in for your liked used car and avail the loan in quick time.