Personal Loan for Second Hand Car

One of the many goals that individuals have the moment they start working is to purchase a car. The two main questions that come in our mind is, one, when do people buy a second-hand car and two, how do they finance it. For the former, in today’s market, purchasing a brand new car is not only a costly affair but also unnecessarily puts a lot of financial burden on the person. A used car or a second-hand car is generally the way out as it serves two purposes. One, with a constrained budget this seems a good way to get a car, and secondly, if they want to fine-tune their driving skills, what better way than in a used car, before buying a new car. 

However, we will be concentrating on the latter, which is the financing aspect.

Used Car Loan

• A second-hand car loan, as the name suggests, provides a financial respite to individuals looking for a used car. Many large banks now provide second-hand car loans at good rates, however, one needs to be aware of all the expenses involved in a used car loan. One major criterion in that is the used car loan interest rate. Major Banks have an interest rate that fluctuates anywhere above the 15% mark. 
• One other criterion is the amount of loan disbursed. A used car loan will never cover up the whole cost of the car. The second-hand car loan covers about 70%-90% of the car value.
• Also, the tenure of the second-hand car loan is an important point here. Banks and other lenders offer loan tenure of up to 5 years depending upon the age and condition of the vehicle. 

If the person is not satisfied with the used car loan option one may also look at a personal loan for purchasing a second-hand car. At SMFG India Credit, personal loans are provided at very competitive rates with interest rates starting at 11.99%*. Read on to find out more.

Personal Loan For Second Hand Car

• On the outset, a personal loan may seem a better fit than a used car loan. However, if you have a poor credit score, the chances of your personal loan are disbursed will be very low.
• The process to apply for a personal loan at SMFG India Credit is very customer-oriented and simple.
• On our website, you can even check your eligibility using the eligibility calculator and when it is ascertained that you are eligible, one can use the personal loan EMI calculator to further assist in planning your finances better.

We feel that both personal loans and used car loans have their positives and negatives. If you are looking for a higher loan amount with a lower interest rate, then you could choose personal loans. This might also work if you are looking at buying a car from a friend, or which is really old and hence doesn't attract very good rates for a used car loan.

Apply Now   Check your Eligibility