If you are buying a used car, you can apply for a loan if you want to avoid paying for the entire amount at one go. Hero Fincorp Car loan for second hand car loans are available on almost all models of used cars and you can get loans starting from Rs 50k up to Rs 5 lakhs. Repay the loan through Equated Monthly Instalments (EMIs) over a specified period of time. But the interest rates matter a lot as they affect the repayment amount. Read on to know how to lower these interest rates.
Ways of getting lower interest rate on used car loans:
Making a higher amount of down payment
If you apply for almost 100% of the carâ€™s price as loan, you may have to pay a lower amount of down payment but this would mean that the total interest amount that you have to pay would be high. 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.
High credit score
The credit score gives information about your credit history, credit behavior, past loan repayment details etc. The lender 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. If the CIBIL score is lesser, take necessary steps to improve it like paying your credit card bills on time or paying off your existing loan EMIs without default.
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 low. Hero Fincorp may consider a shorter loan tenure to be risky as it may lead to defaults or non-repayments. So, they charge a high interest rate on a loan with short repayment period. Plan your budget in such a way that the loan tenure is long. You may have to EMIs for a longer time, but the total interest amount would go down.
You will find use a used car loan EMI calculator on the website. You do not need to login or create an account for using it. 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. Just put in the required details and get the details. You can increase or decrease the loan tenure, loan amount, etc. to get an interest rate that would be the lowest.
Hero Fincorp Car loan for second hand car is convenient while buying a used car as it can relieve you off the financial stress. However, there are differences between the interest rates depending on several factors. Go through them before you apply for loans to save on the repayment amount.
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Hero FinCorp Limited
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Website – https://www.herofincorp.com/
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