By opting for a used car loan, one can buy a car expensive than their budget in less amount. The loan is very flexible and comes with easy EMI policy. When you get a used car loan, you have to keep the car you are borrowing as collateral to the lender until you pay off the loan in full. But meanwhile you can still use your car. Banks give loan on the basis of car's current condition, borrower's financial history, CIBIL score, ability to repay the loan and other debt obligations.
The process of getting a used car loan is much easier and hassle free compared to a new car loan. This is a new type of loan and banks are always willing to avail it to customers. Banks offer customized used car loans with easy EMI plans for customers. Also compared to new car loan, the banks are able to lend lesser amounts to customers. Banks charge very minimal fees for pre-payment of used car loan so the customers can easily pay off the loan faster than required.