In India, we strongly believe in the auspiciousness of our festivals. Such a strong belief is precisely the reason why many of us choose to time large purchases like a car during those dates.
Many banks and financial institutions offer several festive loan offers to their customers. But then, should you, as a prospective used car buyer, make use of such loan offers during festive times for getting one? That’s exactly what we will be looking at in this article.
Why festive loan offers are a good option for used car buyers?
By going for festive loan offers, you get to enjoy several advantages. Here’s a quick look at a couple of them.
1. Reduction or waiver of processing fees
Generally, when you opt for a used car loan, banks and other financial institutions charge a fee for processing your loan application. This fee is termed as the processing fee and is usually charged as a percentage of the total loan amount. The fee that the financial institutions charge tends to increase the cost of borrowing for the consumer. However, during such festive loan offers, the processing fees are either reduced or even completely waived off by banks, thereby allowing you to enjoy reduced costs of borrowing.
2. Lower rates of interest
Reduction and waiver of processing fees are not the only kind of festive loan offers that financial institutions offer. Some of them even offer special discounted used car loan interest rates as well. This discount in the used car loan interest rates usually range somewhere between 0.5% to 1%. While this might seem quite low, in the long run, this reduced interest rate can end up saving a lot of money by bringing your monthly EMIs down.
Should you go for festive loan offers for getting a used car?
Of course, as a prospective used car buyer, you should absolutely make use of these festive loan offers. Considering the fact that reduced processing fees and lower rates of interest can end up reducing the overall cost of borrowing and lead to lower monthly EMI payments, one must surely try to fully make use of such offers.
Now that you’re aware of the advantages that such festive loan offers give you, ensure that you don’t miss them the next time around. That said, before opting for a used car loan, make sure you check for the used car loan eligibility criteria.