Vehicle Loans – Types Available, Interest Rate & Tenure
To buy a car of your own is a dream for many. For youngsters, owning their first car is often a symbol of success. However, purchasing a vehicle as big as a car is not cheap. You might not have enough funds to afford a car if you have just been employed. That’s when a fast loan comes to assist.
An instant personal loan helps you with the finances during the purchase, and you can repay that money over a long period. Vehicle loans come in different types, listed below.
New car loan – The new car loan option is offered to people who buy a brand-new car from the showroom. This loan can be opted through any urgent loan app for buying any car model from any company. All you need to do is pay an interest of around 9 to 14% per year over a tenure of 1 to 7 years.
Used car loan – The harsh truth is that not everyone can afford to buy a brand-new car, even with the help of a loan. However, the good news is that you can always buy a used car with the assistance of used car loans or mobile loans. Several lenders might finance up to 85% of the cost of the used car you are willing to purchase. However, you need to pay 12 to 18% interest yearly. You might be offered a repayment tenure of 1 to 5 years for paying back the complete amount. However, if you want a loan for a previously owned car, the car should be less than five years old, and during the time of the loan maturity, the car should not be more than ten years old.
Commercial vehicle loan – a business organization running a business that requires a car can go for a commercial vehicle loan. This type of loan requires a 10 to 15% rate of interest, which should be paid yearly over a repayment tenure of six months to 5 years. It depends on your business’s yearly turnover, the loan amount you can avail of, and the number of cars you already have.
Tractor loan – The tractor loan is available for organizations or people with A regular fixed source of income from any agriculture activities. It is also available for people willing to rent tractors as a business. The tractor loan calls for a yearly interest of 12% on the complete loan amount. You must pay a monthly interest for at least five years to complete the payment.
Whenever applying for a loan to purchase any vehicle, always be careful about the lender you go for. Spend a good time comparing the options available. Moreover, check crucial points such as interest rate, repayment period, and the terms and conditions of availing of a vehicle loan from any lender. The rate of interest and tenure period offered by lenders are not fixed. Hence, it’s important to go for a vehicle loan that suits your requirements the best.