A car is not a luxury anymore rather it has become a necessity for the daily commute. Life without a personal vehicle is quite frustrating as metro or a bus can’t take you everywhere. Also, hiring a cab has become quite expensive as cab companies keep hiking the fares. A Bike is also an alternative to public transport, but it isn’t comfortable. Also, a bike is not suitable for a large family. In contrast to this, a car is much more comfortable and suits even a big family.
But buying a car requires hefty paycheck which obviously everybody doesn’t have. Not everybody has a high paying job! For the ones that have an average salary, buying a car by paying full cash is a dream that can take many years to complete. This fact is enough to break hearts for those who want to buy a car but does not have enough cash. But the good news is that you can take used car loan that would help you to fulfill your dream of owning a car. You can get a car loan not only for a new car but also for a used car loan. There are many banks and NBFC’s units that are willing to give an individual a car loan if they fulfill the eligibility criteria of a car loan.
If you are planning to buy a used car you can apply for a car loan.
No more one has to stand in a queue in banks to get loan approvals as one can get check car loan eligibility online. It is worth to remember that you should check eligibility conditions before you apply for a car loan. Before you apply for a car loan, you must check for some eligibility criteria that NBFC would consider before giving you a loan.
Some of the eligibility conditions for the car loan are
- The individual must be between 21 years at the time of loan approval to 60 years at the end of the loan tenure.
- In case of employment, an individual must be employed for at least 1 years.
- The individual must have a good credit score. A credit score of 750 and above is considered a good score.
A credit score forms an important part of car loan eligibility. But what is a credit score?
The credit score of a person is defined as the loan repayment ability. A credit score is given in the range of 0 to 900. A high credit score is achieved if an individual pays EMI’s on time and does not default on loan repayment.
A high credit score helps to get a low rate of interest on a car loan. The used car loan interest rate has a lot of benefits as you can save a lot of money.
However, before you apply for a car loan, you should compare the rate of interest offered by different lenders in India. Droom Credit offers an interest rate of 9.60% on used cars which is quite cheap when compared to other banks and NBFC’s.
The rate of interest plays a big factor in determining the EMI of your car loan. EMI or equated monthly installments is the general mode of repayment of loans that lasts until the end of the loan tenure. The EMI’s are fixed installments that the borrower needs to pay to the lender as per the term and conditions of the loan.
The loan tenure and the EMI are related inversely. Generally, the longer the tenure is, the lower the EMI. On the other hand, short loan tenure results in a high EMI. The maximum loan tenure for a car loan offered in India is usually 7 years.
If you are looking for a cheap used car loan, then you can apply for car loan online. You can visit the Droom Credit or dial the toll-free number for further inquiry.