A personal loan is a multi-purpose loan. Using one to buy a car is just one of its many uses. You can secure a personal loan for buying a used car. Here is how you do it:
- Shortlist Lenders
All banks and financial institutions offer personal loans. Selecting one lender for the loan is a difficult task. But you eventually have to do it. Compare the loan features. Note the amount, repayment tenure, interest rate, and charge structure. The loan that ranks the best in all aspects would be the best. Usually, it will be the cheapest for you too.
- Check Eligibility
After shortlisting the personal loan, you should check whether you qualify for the loan. Go online and check your personal loan eligibility.
- Apply for the Loan
If you qualify for the loan, the next obvious step is applying for the loan. You can apply online for the loan.
- Submit the Documents Required
To get loan sanction, you have to submit some documents. Once you apply, the lender stipulates what you have to submit. The usual documents required include:
- Your identity proof
- Address proof
- Photographs
- Income proof
- Bank statements
Following these steps would help you avail a personal loan to buy a used car.
Benefits of a Personal Loan
Now, you might be wondering why you should avail a personal loan for a used car when used car loans are available. Well, a personal loan has some benefits over such car loans.
- A personal loan is an unsecured loan. You do not need to pledge any security. But a used car loan requires a security. So, it may not be an option for everyone.
- The interest rate for personal loans is comparatively lower. Personal loans are thus more affordable.
- A personal loan can finance the entire cost of the used car. This is not possible with other loans that finance only a certain proportion of the total cost.
- The repayment tenure is higher for a personal loan. You repay over a longer time. Thus, your EMI is lower.
- It is an instant loan that requires minimal documentation and is approved fast.
Avail the personal loan for the used car with a low interest rate for the personal loan and easy repayment. Whether you treat it as a second car loan or buy your first vehicle with it, a personal loan may be the right choice. Do your research and apply for one.