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Benefits of Used Car Loan

A second hand car loan from Muthoot Capital has many benefits. The used car loan rates are low, and the loan process is seamless.

• Attractive schemes allow you to avail up to 100% of the total ‘Insurance declared value’ of the used car as a loan.
• The flexible repayment option allows you to choose a tenure ranging from 12 to 60 months.
• Attractive interest rates for used cars. There are various schemes available.
• The approval and disbursement are quick and hassle free.
• Muthoot Capital offers loans under no income base, income base and asset proof base for its customers.
• The documentation is simple and easy.
• The application process is also very simple.
• You can avail of a loan from Rs 50,000 to Rs 10 Lakhs.

Factors that Impact Used Car Loan Interest Rate

Many factors that affect the second hand car loan interest rate.

• Credit score: Muthoot Capital runs a credit report check that evaluates your credit score. This includes your closed and current credit accounts, the history of payments made and the length of your credit usage.
• Ratio of debt to income: It is a simple way to understand the amount of money you owe to various lenders in ratio to your total income.
• Size of loan and down payment: The size of your down payment also affects used car loan rates. A larger down payment means favourable terms and conditions.
• Age of the vehicle: The age of the vehicle affects lending rates as the value of the vehicle is an important consideration. Newer vehicle implies a higher resale value of the car in an unfortunate case of repossession of the vehicle.
• Tenure of the loan: Customer has to pay smaller EMIs when loan tenure is longer due to bigger payout duration. The EMIs increase when the loan tenure gets shorter.
• Loyalty: If you are an existing customer of Muthoot Capital and fulfil the eligibility criteria you may get a favourable rate of interest as you have a relationship with the company.