Home FINANCE What is the Best Way to Apply for a Used Car Loan – Online or Offline? 

What is the Best Way to Apply for a Used Car Loan – Online or Offline? 

by Paresh Bramhane
What is the Best Way to Apply for a Used Car Loan – Online or Offline

‘Old is gold’ is one of those sayings that hold true when you are buying a pre-owned car. Not only are they more affordable than new cars, but also are cheaper to insure and maintain. Plus, if you are a novice driver, you will not feel too bad even if you bump the used car a few times in traffic or it gets a few scratches. The used car market in India is currently flooded with numerous makes and models to, so that you feel spoilt for choice. And the best part is that many financial institutions in India are offering used car loan financing at attractive rates, which makes your task super simple. You can apply online or offline as per your convenience and even land the best deal if you follow the rules. But which route to take? 

Benefits of applying for used car loan financing online 

1- Rate Comparison

All you need is your couch and a phone or laptop to compare the rates and deals offered by several financial institutions. Simply browse the websites of various lenders, navigate to the used car loan financing section, and take note of the interest rates and fees. You can also head to loan aggregators’ websites to make things easier. Fees, interest rates, eligibility conditions, and documents can all be compared there. To conduct such research, all you need is a smartphone with an internet connection. 

 2- EMI Calculator 

When you go for the online used car loan financing method, you will find EMI calculators on lender websites. The calculator assists you in determining the amount of money you must pay each month to repay your loan. The EMI calculator is a customised tool that allows you to select the optimum amount as per your budget.

3- Speed

Your loan application is just a click away in the online method. As soon as you fill in the required details, you will get to know whether or not the lender will approve your used car loan. When a borrower applies online, their information is saved in the lender’s database, and the customer’s eligibility is checked right away, making the procedure quick. If you apply within business hours, your chances of receiving a loan approval within hours are very high if you are meeting the necessary eligibility conditions. 

4- Convenient

If you work six days a week as a salaried employee, you will need to take a day off from work to apply for a loan. Similarly, a business owner may not be able to spare time to visit a lender’s branch. So, in such cases, it can save you time and effort if you apply for a loan online. 

Benefits of applying for used car loan financing offline 

1-Better Understanding

It is usually a good idea to study the loan terms and conditions whether you apply online or offline. When applying for a loan online, most borrowers simply click the checkbox and hit the submit button without reading the terms and conditions. On the other hand, when you apply offline, you are in direct contact with the financial institution’s executives. You can readily ask questions about your loan terms and clear any doubts you might have.

2-Scope of Negotiation 

Your second-hand car loan approval is determined based on several factors such as your age, income and so on. If you have a strong profile and a decent credit history, chances of getting a better loan deal are high. You can also negotiate on the loan charges in that case. Moreover, if you are just shy of the required creditworthiness, you can still manage to get your loan approved, provided that the authorised person is satisfied with the other factors. However, such things are quite impossible when applying through an online mode. 

Which one to choose?

As previously mentioned, both offline and online processes have their own sets of advantages. An online application saves you time and energy while also allowing you to compare loans from the comfort of your couch. When applying offline, however, you get the opportunity to negotiate your loan terms and conditions with the lender. So, the route you choose will depend on your unique situation and requirements. 

To Conclude

When applying for used car loan financing, whether offline or online, make sure you do thorough research and see what different financial institutions are offering. Do not rush your decision. Take your budget into account and use EMI calculators on lender websites to check what you can afford to pay every month. Make sure your credit score is good and you satisfy your chosen lender’s eligibility criteria. Also find out about the prepayment clause, what happens in case you default and check if there are any hidden charges. Take the final call only when you are completely sure that the lender you have zeroed in on is the one for you.

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