Planning to buy a used car due to a limited budget? You can apply for a Hero Fincorp Used Car Loan if you want to avoid the stress of paying the entire amount in one go. This way you would be able to carry on with your other regular expenses comfortably. Car loans are available on almost all models of used cars but there are differences between the interest rates. A low-interest rate would help you to save on the total EMI (Equated monthly instalment). Read on to know how to get a loan on second-hand cars at low-interest rates.
The factors that would help you to get the loan at a lower interest rate include:
Â·Â Â Â Â Â Â Â Â Making a higher amount of down payment
If you apply for around 50% of the carâ€™s price as a loan, you may have to pay a higher amount of down payment but this would mean that the total interest amount that you have to pay would be less. It would mean an upfront saving but would ultimately increase your EMI. So, one of the ways you can get a lower interest rate would be that you pay a bigger amount of down payment.
Â·Â Â Â Â Â Â Â Â A good credit score
The credit score gives information about your credit history, credit behavior, past loan repayment details etc. The lenders would go through your credit scores in most cases to determine whether you are eligible to get a loan and the percentage of interest rate that they would charge. If you have a CIBIL score above 750, it is a good one. In this case, you can bargain for a lower interest rate on the loan on second-hand cars with your lender.
Â·Â Â Â Â Â Â Â Â Loan tenure or repayment period
The loan tenure also affects a used car loan interest rate. If you go for a longer loan tenure, the interest rate would be higher. Lenders consider a longer loan tenure to be risky as it may lead to defaults or non-repayments. So, they charge a high-interest rate. Plan your budget in such a way that the loan tenure is short. Your EMIs may increase, but the total interest amount would go down.
Â·Â Â Â Â Â Â Â Â EMI calculator
You will find a Hero Fincorp Used Car Loan EMI calculator on the lenderâ€™s website. The EMI calculator is a convenient tool to get the accurate amount of EMI, interest rate, and loan tenure before you finalise your loan application. You can increase or decrease the loan tenure, loan amount, etc. to get an interest rate that would be the lowest.
Â·Â Â Â Â Â Â Â Â Discounts on interest rates
You may find seasonal discounts, festive offers, and schemes at specific times of the year. To get a lower interest rate, you may take advantage of these offers.
A Hero Fincorp Used Car Loan is convenient when buying a second-hand car as it can relieve you of the stress related to the funds required for purchase. But, there may difference in the interest rates due to certain factors. Some of them are a good credit score, shorter repayment tenure, etc. A good understanding of these would help you in getting a lower interest rate, so that you can save on the repayment amount.
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Hero FinCorp Limited
09, Basant Lok, Vasant Vihar, New Delhi â€“ 110057
Email Id: Corporate.Care@HeroFinCorp.com
Website – https://www.herofincorp.com/