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With so much inflation increasing day by day, it becomes difficult for low earning people to buy a car. But since the car has become a necessity, there are solutions like getting a used car at reasonable rates, and companies like Muthoot FinCorp provide used car loans.
With a rise in the automobile sector and a surge in demand for cars, the finance sector has brought ways to provide for easy car loans so that everyone has their vehicle. Since people are buying used cars, you should also be specific as to which company you will choose to finance the used car. In this article, you will know about the points one should consider before selecting a company for financing a used car.
1. INTEREST RATES
Like any other loan, the critical factor for a second hand car finance is the interest rate. The interest rate is when the borrower has to pay with the principal amount as a certain percentage of money. The interest rate on the used car loan is usually higher than that of a new car. So, compare all the interest rates given by different banks before finalizing the used car loan.
2. LOAN AMOUNT
You have to be sure what amount you want as a loan that you can quickly return. Though you shouldn’t take the full amount as a loan for a used car, find a company that provides the total amount to finance a car. At Muthoot FinCorp , a full amount of car loan is provided at a reasonable interest rate.
3. LOAN TENURE
A good financing company is that which provides longer loan tenure. The longer your loan tenure is, the lower the interest rate is. So, find a company with a more extended loan term scheme with a reasonable interest rate so that your loan is paid back quickly and does not create any stress or burden on your financial status.
4. EMI CALCULATOR
EMI is the monthly installment that you pay every month as a re-payment of your loan. Some companies provide an in-build calculator for the calculation of the EMI. Companies like Muthootfincorp have an in-build calculator that allows you to calculate your EMI. You have to put in your details like the loan amount, interest rate, and the loan duration, and it will calculate your EMI. It is very beneficial to calculate your EMI in advance so that you prepare for it in advance.
5. DO NOT FORGET THE PROCESSING FEES
Some companies charge high processing fees for a new car or used car. You don’t want to pay high processing fees just for some documents. Make sure you go for the company which provides loan assistance through hassle-free documentation and a reasonable processing fee.
TO APPLY for LOAN FROM MUTHOOTFINCORP ONLINE, YOU NEED TO FOLLOW THESE SIMPLE STEPS:
- Go to the official site of Muthootfincorp, or you can download the app M- Power and select the option of auto loan from the menu.
- Check your loan eligibility, mentioned on the site.
- Now calculate your loan EMI and select the loan tenure which suits you.
- Apply online by clicking on the apply button, and an OTP will be sent to your mobile number along with verification. Then submit the documents digitally, which are asked and save them.
- A staff member will come to your door for all the other formalities, and your loan will be approved within a few hours.
CONCLUSION
Buying a used car is an option many people choose since it is not everyone’s cup of tea to buy a brand-new car, which is understandable. But, purchasing a second-hand car doesn’t mean you have to pay the whole amount at once and create a hindrance in your budget. There are a lot of companies that assist in financing the used cars. You have to be sure of what you are looking for and choose the right company for helping you get to your vehicle as easy as possible.
