Although buying a car in India has become extremely convenient in terms of where to buy and how to buy, it has recently become all the easier with the introduction of financing options. The financing options allow for people to buy cars even if they don’t immediately have the money for the same. The financing options are not only available for new cars; they are available for used cars as well.
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Financing Done by Banks for Used cars
A large number of banks offer financing options for used cars. They have certain criteria which the car and the vehicle owner should meet such as the year/ model of the car, the condition and if there are any instances of accidents with the vehicle. The banks also require some information about the buyer to understand whether they would be able to pay back the loan on time.
Financing by Credit Cards for Used Cars
A large number of credit card companies/ banks offer the financing options such as no initiation fees etc. to lure customers into buying cars on their credit cards. The banks are able to benefit as well since there are a lot of transaction charges and interest fees that a customer would have to pay when buying on credit cards. However, since the credit cards have a high penetration across the country, it is becoming very convenient and fast way to buy a used car.
Financing by Non-Banking Finance Companies (NBFCs)
Several Non-Banking Finance Companies such as Mahindra Finance, Reliance Commercial Finance provide loans for used cars across the country. They require certain documentation to be filed and are able to provide loans in a small time. If you wish to buy a used car on finance anywhere in India, you can simply give a call on their toll free numbers and they are able to provide loans at a short period of time.