The second-hand car market has been booming in India. It was estimated that the business<\/a> generated in the used car market for FY 18-19 was an astounding Rs 1 lakh crore. One of the reasons behind the exponential growth of the second-hand car market has been the availability of finance.<\/p>\n

Buyers have a variety of choices when it comes to availing of second-hand car loans. However, before shortlisting it is imperative to make a comparative study of the used car market and the rate of interest for second-hand car loans in the market.
\nHere is a quick guide to get you a loan for a used car. Of late, lenders are ready to lend up to 95% of the value of the used car and it is has become a breeze to secure a second-hand car loan in India.<\/p>\n

1. Check for the age of the car: When a buyer is considering a used car loan<\/a>, it is important to understand the age of the car. The reason is no lender would be interested in financing an old car. If the car model that the buyer wishes to purchase is phased out from the market, the lender will hesitate to approve a second-hand car loan.<\/p>\n

In the general case, a lender will provide finance<\/a> if the car is 7 years old. The term of a used car loan determines the term of the loan. If your car is on the road for 2 years, the loan term will be 5 years. Whereas, a car that is 4 years old will fetch you a loan with a loan term of 3 years.<\/p>