Bank finance articles and tips

There are several individuals who are willing to purchase a second hand car or used car. In order to facilitate them, there have been several financial solutions that are offered at competitive rate of interest. You can avail used car loans in India on requirement to buy a second hand car but there are several other things that should be taken care of. Following are the features of used car loans due to which, it is highly appreciated among individuals:

? No advance equated monthly installments (EMIs)
? Longest tenure period of 3 to 5 years for the repayment of loan
? Lower and affordable car loan interest rates
? Lower car loan emi (equated monthly installment)

Under this type of car loan scheme, an individual can avail up to 85% of the present value of vehicle as loan amount at on-road price of car. Nowadays, the finance is offered at on-road prices, which includes registration, insurance and cost of accessories worth Rs. 25000. This specific norm may vary from bank to bank. When it comes to car loan interest rates, then the interest will be calculated either on daily reducing balance or monthly reducing balance method. Usually, to facilitate borrowers in all aspects, flexibility of payment of car loan emi (equated monthly installment) s also offered that enables loanee to pay anytime during the month.
And, the chosen vehicle or car for finance should not be older than 3 years. Few of the banks like state bank of India (sbi) can offer finance for those vehicles, which are older than 3 years but not old from 5 years. There will be a low processing fee costs around 0.50% of loan amount, charged from you as an additional cost. With this type of car finance, you can also get a free accidental insurance and an optional life cover as per the loan offer of the respective bank.

In order to avail this special car loan scheme, an individual should be between 21 to 65 years of age, who has a regular source of income and must be earning to the required level as defines by the bank. This car loan eligibility may also vary from bank to bank, so before applying, you should confirm with your financial institution or the lending authority. As a down payment, you are required to arrange at least 15% of the on the road price, which is also considered as margin money.