Buying a Used Car This Festive Season? Know Benefit of Easy EMIs

With the right financing, buying a second-hand car is more achievable than ever during this festive season! A Pre-owned Car Loan with an Easy EMI plan allows you to own your dream car without straining your monthly budget, giving you ease with affordability. This guide explains what easy EMIs are, their benefits, and how to use an EMI calculator to make an informed decision. Read on to learn more!

Understanding Easy EMIs for a Pre-owned Car Loan

An easy EMI is a fixed sum of money you pay to a lender every month to repay your used car loan. The term ‘easy’ refers to how manageable and predictable these payments are since they remain consistent for the entire loan period.

The shift towards used car purchases can be seen by the rise in the used-to-new car sales ratio, which, as reported by CRISIL, has increased to 1.4 from less than 1 just five years ago. This indicates a structural shift in consumer preferences, driven by increased confidence and digital adoption in car buying. As more consumers turn to used cars, financing options like easy EMIs are becoming even more relevant and accessible.

Also Read: Why Pre-owned Car Loan is a Smart Choice for Financial Freedom?

Key Benefits of Opting for Easy EMIs on a Used Car Loan

Choosing an easy EMI for your used car loan comes with several advantages that simplify the borrowing experience. Here are some of its key advantages:

Financial Affordability

An easy EMI makes it possible to afford a significant purchase like a car. Instead of facing a big financial hit all at once, you can spread the cost over several months or even years. This way, you won’t have to dip into your savings or make sacrifices in other areas of your life just to buy the car you need.

Flexible Repayment Tenures

Lenders generally offer flexible repayment tenures, giving you the option to choose a tenure that matches your monthly repayment capacity and comfort level. For instance, the EMI tenure for a Pre-owned Car Loan at Poonawalla Fincorp ranges from 12 to 72 months.

If you choose a longer repayment period, your monthly payments are lower, making it easier to fit them into your budget. On the flip side, a shorter repayment time means higher monthly payments. And you’ll be able to pay off your used car loan more quickly, which can help you save on interest in the long run.

Access to the Best Car Loan Rates

Lenders today offer competitive interest rates on pre-owned car loans, helping to keep your monthly payments affordable. Poonawalla Fincorp offers competitive rates too, starting from as low as 11%* p.a. A lower interest rate means more manageable EMIs, ultimately reducing the overall cost of your loan.

Simplified Budgeting

With a fixed easy EMI, you know exactly how much you need to set aside each month. This predictability is invaluable for effective financial planning. It helps you manage your household budget without the stress of fluctuating payment amounts, allowing you to allocate funds for other investments and goals confidently.

Also Read: 7 Tips to Reduce Your Pre-Owned Car Loan Interest Rate

How to Use an EMI Calculator for Your Used Car Loan

Before you apply for a used car loan, it’s wise to use an online EMI calculator. It helps you see how things like the loan amount, interest rate, and loan term can change your monthly payment, allowing you to make a more informed choice.

To use the calculator, you only need to enter three key details:

• Put in the loan amount you wish to borrow.
• Add the interest rate your lender offers.
• Specify the repayment period you want.

For example, if you were to take out a loan of ₹5 Lakh for five years at a 12% interest rate, your monthly payment would be around ₹11,122. You can adjust any of these numbers in the calculator to find a payment that fits your budget. It’s also a great way to compare different lenders and find the best loan rates out there.

Also Read: 5 Tips to Make the Used-car Loan Application Process Easy

To Conclude

The festive season offers the perfect opportunity to drive home your dream car, and with the right financing, it can be a stress-free process. A Pre-owned Car Loan’s manageable monthly payments make it affordable, and you can pick a repayment period that fits your budget and lifestyle.

Check your loan eligibility online and apply for a Pre-owned Car Loan with Poonawalla Fincorp; simply click ‘Apply Now’ on the loan page, upload the required documents and fill out the form.

FAQs

What are the best car loan rates for pre-owned cars?

Rates can vary from lender to lender, but keep in mind that these can differ depending on the lender, your financial situation, and how long you want to take to repay the loan.

What is the maximum repayment tenure for a used car loan?

You can usually stretch out the repayment period for a used car loan to as long as 72 months, or even 84 months with some lenders. Choosing a longer term can help lower your monthly payments, making them easier to manage.

How can I calculate my EMI for a Pre-owned Car Loan?

Calculating your monthly payments is quick and easy with an online EMI calculator. Just plug in how much you want to borrow, the interest rate, and the repayment period to get a clear idea of what your monthly payments will look like.

How quickly can I get a used car loan?

Thanks to online applications and minimal paperwork, you can get a used car loan approved quite swiftly. Many NBFCs can approve your loan within a few hours, and you might receive the funds in just 24 to 48 hours.

Is a down payment necessary for a used car loan?

A down payment is not always mandatory for a used car loan, but paying it is highly recommended to increase approval chances. If required, it can range from 10% to 20% of the car’s value, depending on the lender. Some NBFCs might ask for a down payment, so it’s best to confirm the specific requirement with your lender before proceeding.