Owning a car is a dream for many. However, not everyone is able to afford an expensive brand new car. Nowadays, many individuals are opting for a pre-owned car due to its lower purchase price. Not only does it fulfill the basic need of transport but also offers value for money. The market for used cars has witnessed a boom in recent times. Banks and lending institutions offer pre-owned car loans for those seeking to buy a second-hand car.
Tata Capital provides loans to purchase a wide variety of second-hand cars ranging from SUVs to luxury cars. The rate of interest on these used car loans is competitive, thus helping you land the best deal. Tata Capital also offers longer repayment duration of up to five years. Besides, it is possible to avail of a loan up to 90% of the car’s valuation. Thus, you have to pay only 10% as down payment.
Tata Capital also offers flexible repayment schemes for loan repayment, where you may make repayments as per you cash inflow. In case your inflow of cash for a particular month is low, you may reduce the Equated Monthly Installment (EMI) amount for that month. Similarly, in case you receive a surge of cash due to thesale of an asset or any other reason, you may increase your EMI amount for that particular month.
Tata Capital offers two types of repayment options, namely structured schemes and EMI payments.
1. Structured schemes
Structured schemes provide the benefit of selecting the EMI you are comfortable with. You may make payments through Electronic Clearing Service (ECS) or post-dated cheques. Additionally, this scheme provides the facility of making a full prepayment of the loan.
2. Equated Monthly Installment
In an EMI repayment option, borrowers have to pay back the loan in small amounts with interest during a period of time. Tata Capital used car loan allows you to customize your EMI amount based on an increase or decrease in your income.
Following are five repayment options that Tata Capital offers.
1. Equal regular payments
Here, the EMI amount is constant throughout the loan tenure. The EMI amount changes only with an increase in the interest rate.
2. Bullet Flexi EMI plan
This scheme allows you to prepay a part of the loan if you receive an additional inflow of cash. Prepaying a loan reduces your installment amount significantly.
3. Step Up Flexi EMI plan
As the name suggests, you may step up on your EMI amount. In the beginning of the loan tenure, a low amount has to be paid, which then increases steadily every year.
4. Step Down Flexi EMI plan
This repayment scheme allows you to lower your EMI amount every year. The EMI is the highest at the start of the loan tenure and then decreases gradually over the loan tenure. This plan is suitable for those who possess higher disposable monthly income or for individuals who are nearing their retirement age and wish to quickly create an asset.
5. Balloon Flexi EMI plan
In this option, you are allowed to pay lower EMIs during the loan term as you have to make a substantial payment in the last EMI.
Thus, Tata Capital allows you to drive home your dream car without facing any financial difficulties. If you wish to purchase a pre-owned car, you may avail of the benefits Tata used car loan has to offer. Go ahead, make smaller down payments and repay the loan as per your cash flow.