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New Car vs Used Car Loans: Which is a better option?

Posted on by Niranjan Mohan

Considering purchasing a car? The decision between going for a Used Car vs New Car Loan isn’t just about the car; it could shape or disrupt your financial journey.

Opting for a high-end pre-owned vehicle at a lower price will offer your a number of advantages. Not only does it provide access to the luxurious models at a fraction of the cost, but buying a used car also provides you with benefits like lower depreciation rates, reduced insurance premiums, and potentially lower registration fees.

Our expert and dedicated executives are here to assist you throughout your journey, right from selecting the right dealer, ensuring a seamless, and, to a satisfying purchasing experience. Opting to buy a used car not only helps you save money at the beginning but also helps you stay financially secure and worry-free in the long run.

Let us break down the basics to help you effectively compare your car loan options.

Why does it matter?

While your choice between buying a new car vs used car loan, holds the key to your financial peace, each option has its own perks, and understanding the differences will guide you to the perfect fit for your wallet and

Below is a comparison of used car loans vs new car loans for your understanding:

Feature New Car Loan Used Car Loan
Interest Rate Generally higher Often lower
Loan Duration Typically shorter (due to higher Loan amounts) May be longer (due to lower Loan amounts)
Down Payment Generally higher Generally lower
Risk Factor Higher (newer cars depreciate faster) Lower (used cars have already depreciated)

What are Used Car Loans?

A Used Car Loan allows you to purchase a pre-owned vehicle without draining your savings. It covers the cost of the car, letting you pay in monthly instalments spread across 1 to 5 years.

Key Features of a Used Car Loan:

When considering financing for a used car purchase, you need to understand the key features of a Used Car Loan. These Loans offer a range of advantageous features aimed at simplifying and making the purchase of a new vehicle more affordable. With a focus on flexibility, affordability, and peace of mind throughout the Loan process, Used Car Loans aim to make it easier for you to secure financing for your desired vehicle.

Let us now explore and understand some of the essential aspects of Used Car Loans that make them an attractive option for budget-conscious buyers like yourself.

  1. Higher Interest Rates: Due to depreciation, Used Car Loans often have slightly higher interest rates than new car loans. However, borrowers with good credit history can still avail Loans at competitive rates from us..
  2. Shorter Loan Terms: Used Car Loans usually come with shorter repayment periods, ranging from 1 to 5 years. We offer a tenure of up to 5 years. You should keep in mind that, opting for shorter terms can lead to reduced overall interest costs and faster vehicle ownership.
  3. Lower Loan Amounts: While some lenders might offer lesser funds for used cars due to their lower market value, we ensure secured funding of up to 95% of your used car’s value.

Also Read – 4-step guide to buy a used car in India

Pros of a Used Car Loan over New Car Loan:

  • Used Car Loans offer affordable options, reducing upfront expenses
  • Used cars experience less value decline compared to new ones, saving your money
  • Insuring a used car is cheaper, providing ongoing savings
  • Drive away right after loan approval, enjoying immediate use of the vehicle
  • There is no registration cost for a used car, no lifetime tax, only, the name transfer cost is applicable* (Revised)

Cons of a Used Car Loan:

  • Used Car Loans often have higher rates due to perceived risk
  • Repayment periods may be shorter, leading to higher monthly payments
  • While lesser depreciation is there than new cars, used cars still depreciate, impacting its resale value

What are New Car Loans?

If the idea of hitting the road in a gleaming new car gets you excited, a new car loan is the perfect move. The interest rates for these loans range from 9% p.a onwards. You can choose between fixed and floating interest rates. With a fixed rate, your monthly payments remain the same. But with a floating interest rate, your payments may change based on market trends.

Key features of a New Car Loan:

Let us explore the key aspects of New Car Loans:

  1. Competitive Interest Rates: New Car Loans typically have lower interest rates compared to Used Car Loans. This is because new cars have a higher resale value, reducing the lender’s risk. Despite used cars being cheaper, lower interest rates can result in lower overall interest costs and monthly payments.
  2. Extended Loan Durations: New Car Loans often come with extended repayment periods, typically spanning from 1 to 7 years, stretching out the repayment timeline helps distribute the car’s cost over a longer period, resulting in lower monthly payments. However, it is important to note that opting for longer loan terms inevitably leads to a higher overall interest payment.
  3. Higher Loan Amounts: New cars generally hold higher market value, allowing you to get a larger Loan amount. This aspect minimises the need for a higher down payment.

When considering any Loan, we should know its pros and cons:

Pros of a New Car Loan:

  • New vehicles typically come equipped with the latest safety features, ensuring better driver and passenger safety
  • Loan allows you to spread the cost of the car over time, making it more manageable to fit into your monthly budget.

New car might come with warranties that covers maintenance and repairs to an extent, reducing the chance of unexpected expenses

Cons of a New Car Loan:

  • Rapid depreciation leading to significant loss in resale value
  • Higher initial cost compared to used cars
  • Higher insurance premiums due to higher value

Answering the most important question: Should I buy a new or used car?

  1. Budget and Affordability: Determine your monthly payments by assessing your budget. Used cars often offer a more budget-friendly option, allowing you to align your financial goals and make an informed decision between a new car and an older model.
  2. Impact of Depreciation: Calculate the impact of depreciation on your investment. New cars undergo higher value decline in their early years, whereas used cars have already experienced a major part of this depreciation, potentially offering better value for your money over time.
  3. Vehicle Condition and Reliability: Thoroughly inspect the condition and maintenance history when buying a used car. This step ensures reliability and helps you assess potential maintenance costs, providing a clear picture of the vehicle’s overall value.
  4. Insurance and Warranty: Consider the financial aspects of ownership, including insurance premiums and warranty coverage. While new cars may come with higher insurance costs, they also offer comprehensive warranties. Used cars, on the other hand, might have lower insurance premiums, but you need to account for potential repair costs without extensive warranty coverage.
  5. Personal Preferences: Factor in your personal preferences when deciding between a new and used car. If you prioritise the latest features, technology, and aesthetics, a new car loan may be appealing. However, if affordability and value for money are crucial, a Used Car Loan presents a compelling alternative with a well-maintained pre-owned vehicle.

Also Read – Know everything about used car loans

New Car vs Used Car Loans: Finding the Best Option

When comparing New Car and Used Car Loans, the latter often proves to be the better choice. Old car loans offer affordability and value for money, with reduced upfront expenses and less depreciation compared to new vehicles. Additionally, insuring a used car is typically more economical, leading to ongoing savings. Therefore, opting for a Used Car Loan can provide significant financial benefits and practicality for your next car purchase.

Also Read – Buying a used car on a loan? Here are 6 things you must know

FAQs –

  1. Why is the used car loan interest rate high?

The interest rate for Used Car Loans tends to be higher due to the perceived risk associated with used vehicles, leading lenders to impose a slightly higher rates.

  1. Which car is the best, new or old?

When considering a new car, you get the latest technology, but they often depreciate rapidly in value. On the other hand, opting for a used car allows you to enjoy the amenities within a constrained budget. Ultimately, the decision depends on your personal preference and financial considerations.

  1. Can I get a Loan on the full value of a second-hand car?

Typically, lenders might request a down payment for Used Car Loans, even if it doesn’t cover the entire vehicle cost.

However, we provide financing of up to 100% of the car valuation, depending on factors like a good credit score, the vehicle’s condition, etc.

  1. How can I get a low-interest loan for a used car?

To secure a low-interest loan for a used car, maintain a good credit score, make a substantial down payment, opt for a shorter loan term, and look for the best offers! For personalised assistance, visit us for an expert guidance and tailored financing solutions.

 

Cost-Saving Tips for Buying Used Commercial Vehicles

Posted on by Niranjan Mohan

Getting a commercial vehicle for a business involves careful consideration as it keeps the business up and running!

In this article, we will look at important factors when deciding on buying a pre-owned commercial vehicle.

Tips for purchasing used commercial vehicle:

When buying a used commercial vehicle,

Determine the requirements of your business:

Keep the type of cargo or passengers, travel distance, and your other unique needs in mind, to compare among your options.

Trust and transparency:

Purchase from sellers who are transparent about the truck’s history, condition, and paperwork.

Physical Condition of the truck:

Age, engine condition, body condition, and so on. Keep in mind, good maintenance history of the old vehicle means, a strong foundation for your new journey with the truck and also a good mileage.

Draw up a budget:

When buying a second-hand commercial vehicle a very important aspect is funds. Banks and NBFCs (Non-Banking Financial Companies) like ours, fund the purchase of pre-owned commercial vehicles. This includes covering the purchase costs, as well as additional costs like insurance, maintenance costs, fuel, and financing charges.

Research financing options:

Before getting a Used Commercial Vehicle Loan, lease, or financing it with any other means, you have to evaluate the interest rate, Loan conditions, and down payment costs.

Financing for a commercial vehicle:

It has become a common practise to use commercial vehicle finance when purchasing company-owned cars or larger commercial vehicles.

Broadly, there are three types of commercial vehicle finance:

  • Hire Purchase
  • Finances Lease
  • Contract Purchase

Hire purchase:

Under a hire purchase agreement, you pay a fixed rate of interest for the whole tenure and benefit from fixed monthly payments which helps keeping your budgeting simple.

You get to select the amount of deposit you wish to pay, typically a minimum of 5% up to 50% of the vehicle’s purchase pricing. The balance amount, together with the interest, is repaid over an agreed period. The terms can vary from 1 to any number of months, but 12 and 48 month agreements tends to be the most common.

VAT is paid initially and it can be claimed back on your first VAT return after purchase.

Finance Lease:

Under Finance Lease, the vehicle is hired for you by the finance company and remains in the ownership of the finance company throughout the term of the agreement. Monthly payments are fixed for the duration of the contract. Because you do not take ownership of the vehicle at the start of the contract, it has a very different treatment for tax purposes.

VAT is payable on the monthly rentals rather than in full at the beginning of the contract. Contract lengths tend to be either 12, 24, or 36 months. At the end of the agreement, the vehicle is owned by the finance company.

Contract hire:

Contract Hire, sometimes known as an Operating Lease, is much like commercial vehicle leasing.

Contract hire has more restrictions in the terms and conditions, than a finance lease, but can be used for a wider range of assets, including company owned vehicles. In this case, the vehicle is hired for an agreed period, usually between 12 and 60 months, and a rental is paid based on a pre-agreed mileage limit.

Our Used Commercial Vehicle Loans:

Balance Transfer (Secured Loan Offering):

You can save more by transferring your high-cost commercial vehicle loans to us. We provide affordable secured loans for your commercial vehicle with a number of benefits.

Personal Loans for existing customers:

Along with Used Commercial Vehicle Loans, you can also get the best offers on our Personal Loans. Avail up to Rs. 1.5 lakhs without any additional documentation and collaterals.

Key Features and Benefits of our Used Commercial Vehicle Loans:

  • Low interest rate
  • Loans for up to 15-year-old assets
  • Faster Turn Around Time (TAT) with minimum documentation
  • Quick Loan approval
  • Refinance for your existing vehicle

Buying a used truck can be a major investment for businesses in various industries, so selecting pre-owned commercial vehicles can offer substantial cost savings. Therefore, it is important to think about the key factors before making such a decision.

Quality check before buying an old commercial vehicle:

When you go about buying a used commercial vehicle, a very important thing to take note of is the reputation of the seller, whether they have credibility dealing with the sales of second-hand commercial vehicles, if they offer used vehicle warranties, and for what period. Without knowing the seller’s history, it is hard to determine the authenticity of your purchase, especially of an old commercial vehicle.

Vehicle History and Maintenance Records:

A very important factor in question is the vehicle’s history and maintenance records. Get an extensive vehicle history report from TVS Credit today, to check the previous ownership, accidents, repairs, and mileage. Check the maintenance records to determine if the truck has undergone regular servicing and if any major repairs have taken place.

Mechanical Condition and Inspection:

A mechanical inspection should be done to know the current condition of the used commercial vehicle. Take help of a qualified mechanic or technician to check the engine, transmission, suspension, brakes, electrical systems, and other vital components.

Usage and Mileage:

Make note of the vehicle’s usage and mileage to estimate its remaining lifespan and potential repair costs. Excessive wear and tear, high mileage, and demanding applications may indicate a higher risk of mechanical problems.

Fuel Efficiency:

For commercial vehicle operators, assess the fuel efficiency of the used truck by researching its make, model, and engine specifications. Consider factors such as aerodynamics, engine technology, and emissions standards to determine the truck’s potential fuel consumption. Opting for a more fuel-efficient truck can provide long-term savings and minimise environmental impact.

Insurance and Warranty:

Securing reliable insurance is as important as buying a used commercial vehicle. When buying a used truck, having the insurance papers in order is paramount as they travel all over the country and undergo many inspections as a result.

Verification of RTO-related details such as fitness certificate and tax payment information can be conducted via the Vahaan website with our executive’s assistance.

Also Read: How Used Commercial Vehicle Loan helps your business?

When you already found a good investment opportunity in terms of a Used Commercial Vehicle, financing it with us is quick and easy giving you a smooth journey towards acquiring it. Our products and services are available as per your needs!

Saksham

Posted on by Niranjan Mohan

TVS Credit empowers Indians from various socio-economic backgrounds with our thoughtfully designed financial products. As Indians from all walks of life set out to write their growth story, our timely and affordable credit empowers them to bring their aspirations alive.

 

Our products and services are designed to deliver innovation that is inclusive as well as sustainable. We are very cognisant of the fact that empowerment has multiple dimensions and that we go beyond our products and services in giving wings to the dreams of our customers. Saksham, TVS Credit’s initiative is a move in this direction to help underprivileged students and school dropouts develop the necessary skill set to equip themselves for a better future.   

 

A move towards “Empowerment from Within”

Initiated with a focus on rural and semi-urban areas, Saksham helps address the issue of the financial divide from a unique perspective. Through a series of vocational training programs, Saksham provides necessary skills to the communities around our customers. The whole program is organised to enrich their lives and enable them to achieve their aspirations through self-development.

 

TVS Credit’s vision is to Empower India, One Indian at a time. The primary customers of our products and services are self-employed hard working individuals from small-town India who have big aspirations and want the best for their families. They, however, lack the means to achieve it and often are deprived of access to organised credit. TVS Credit has been a pioneer in ensuring that people have access to credit to fulfill their aspirations and not let money be a deterrent to their dreams.

 

However, this commitment of ours is not restricted only to our immediate or potential customers, but also towards their families and communities. We seek to enable dreams and aspirations by empowering them with the requisite skills to stand on their feet. The most practical and direct way of empowerment today is skill development – it helps build knowledge that can’t be snatched away by external circumstances and makes them ‘Saksham’ or ‘Capable’ for life.

 

The Journey So Far

 

We initiated Saksham by collaborating with NGO partner – Yuva Parivartan. Focused on youth welfare and development, Yuva Parivartan is a pioneer in India for providing livelihood to underprivileged youth. With 650 branches all over India, they are best equipped to support and execute the type of lasting skill enhancement initiative proposed by us – one that is inclusive, focusing on hands-on practical training, inculcation of soft skills, and management acumen for attitude and lifestyle change, as well as support with job placements and self-employment.

 

After a thorough need assessment across various locations, we narrowed down to 3 locations to begin TVS Credit Saksham – Devarajeevanahalli in Bangalore, Nanded in Maharashtra, and Raipur in Chattisgarh. Furthermore, in the past three years, we have expanded our reach by including two additional locations – Pune and Indore

 

The need assessment conducted revealed relevance and interest among the following courses:

 

  • Basic Computers
  • Banking & Financial Services
  • Tally
  • Tailoring
  • Beautician
  • Nursing
  • Small Poultry Farmer
  • Jute Bag Making
  • Multi Skill Technician
  • Wireman Course

 

Following the identification of these courses, our team had the arduous task of enrolling students across the centres. The focus was always to promote voluntary sign-up to ensure continued interest. Parents and relatives were invited to the centres to address security and safety concerns directly by checking out the locality and interacting with the staff. Classes started in Bengaluru in October 2018, and so far over 600 students have been trained and more than 65% of the trained youth have been linked to livelihoods (self & wage employment).

 

 

In 2022-23, TVS Credit has supported training of 100+ students in peri-urban and rural Pune, and urban areas in Bangalore. This has resulted in attitude change and an increase in income among youth in these areas.

 

  Saksham Program

A move towards empowerment from within, Saksham Program is empowering school and college dropouts through vocational training programs that teach basic skills across disciplines, paving the way to a brighter and more prosperous future and making them SAKSHAM for life.

How To Get the Best Personal Loan Interest Rates

Posted on by Niranjan Mohan

Interest rates on personal loans from major lenders typically start at 10.49% p.a. Since public sector banks offer lower interest rates, these banks usually offer the lowest interest rates on personal loans. The loan rates offered by a lender depending on the applicant’s credit history, monthly income, professional profile, etc. To choose the most suitable personal loan offer, you should compare the personal loan rates. Interest rates are offered by as many lenders as possible.

EMI Personal Loan Calculator

Use the EMI Personal Loan Calculator from TVS Credit to find out how much EMI you would pay over the life of the loan at different interest rates and loan terms. The online loan calculator also works as an interest calculator as it helps you calculate the total interest that will be payable on your online personal loan.

Fixed Interest Rates

A fixed interest rate personal loan means that the interest rate offered remains fixed and does not fluctuate throughout the life of the loan. Fixed interest rates are comparatively higher than variable interest rates. It also describes the certainty of the exact loan EMI that you must pay upfront over the life of the loan.

Benefits of Fixed Interest Rates for Personal Loans

  • The interest rate remains constant throughout the term of the loan, regardless of changes in the interest rate regime
  • The EMI of the loan does not change, providing certainty in liquidity management and budgeting
  • Interest-rate personal loans will be beneficial during a rising interest-rate regime

Floating Interest Rates

Floating Interest Rate Personal Loans generally mean that the interest rate can change over the life of the loan due to borrowing rates. If you choose an adjustable-rate personal loan, be prepared for interest rate changes during the life of the loan.

Benefits of Floating Interest Rate for Personal Loans

  • Interest rates are comparatively lower compared to fixed interest rates
  • Having personal loans at variable interest rates would be beneficial during a falling interest rate regime
  • Borrowers would save money due to falling interest costs and would also benefit from falling PMI during a falling interest rate regime.
  • Saves you the prepayment fees associated with your personal loan prepayment or foreclosure

Tips for getting a Personal Loan at a Minimum Interest Rate

Here are some important things to keep in mind when getting a low-rate personal loan:

  • Build and maintain a minimum credit score of 750 or higher
  • Consult Banks/NBFCs where you already have a deposit and/or loan accounts
  • Track interest rate rebates offered by lenders during the holiday season
  • Visit online financial markets to review and compare personal loan offers from different lenders

Factors Influencing Personal Loan Interest Rates

Credit score:

A higher credit score may qualify you for a lower interest rate.

Debt-to-income ratio:

A lower debt-to-income ratio may make you a more attractive borrower to lenders and may qualify you for a lower interest rate.

Loan term:

A shorter loan term may come with a lower interest rate.

Type of lender:

Different types of lenders, such as banks, credit unions, and online lenders, may offer different interest rates.

Collateral:

A secured loan, where you put collateral up as security for the loan, may have a lower interest rate than an unsecured loan.

Economic conditions:

Interest rates may be influenced by broader economic conditions, such as the Federal Reserve’s monetary policy.

It’s important to shop around and compare rates from multiple lenders to find the best deal on a personal loan. Download the TVS Credit Sathi App to get easy personal loans from TVS Credit.

Top personal loan benefits

Hassle-Free Documentation

One of the most significant benefits of a personal loan is minimal documentation. In the case of an online application, the documentation is digital. You can upload the required documents together with your application form. The process is entirely electronic.

Some lenders like TVS Credit also offer a door-to-door document collection service. For the process, banks and financial institutions require that you provide proof of age, address, bank account details, payslips, income tax returns, credit history, etc.

Fast Pay-out

Paying off a home loan takes about 3-4 weeks. In contrast, a personal loan only takes 24 to 72 hours. Hence, they are the best financial product to meet urgent payment or cash needs. However, you must meet the eligibility criteria and have good credit for your loan to be disbursed quickly.

No Collateral Required

Personal loans are unsecured loans. You are, therefore, not required to provide any security for any default or non-payment by you of any charges. This characteristic of personal loans makes them accessible to anyone with a steady source of income and a good credit history will help you with debt consolidation

Another key benefit of personal loans is their ability to pay off debt. If you have debt, such as secured loans or high-yield credit cards, you can use a personal loan to pay off payments and eliminate liabilities from your portfolio. Personal loan interest rates are lower than credit card rates. Therefore, you can also pay off high-interest debts with a low-interest financial product.

Versatility

When it comes to utilizing a loan, nothing beats personal loans. Banks and lenders do not impose any limitations or restrictions on end use. This is one of the most beneficial facets of a personal loan. You can use the borrowed money to plan your dream vacation, pay off other debts, buy luxury gadgets and accessories, or celebrate a big wedding. Personal loans also help cover medical expenses in emergencies.

Build Credit Score

Affordable personal loans are a great way to improve your credit score, especially if you are new to credit or have a low credit score. You can take advantage of these at attractive interest rates and repay them with a flexible loan term. Because you pay your EMI and interest on time, your credit score continues to improve

But remember to take out a loan within your ability to pay. Failure to pay the EMI on the loan and you lose EMI can negatively affect your credit score.

Flexible Term

One of the advantages of personal loans that attract borrowers is a flexible repayment schedule. The term starts at 12 months and can be up to 7 years.

Therefore, you can choose an investment that suits your finances and needs and allows you to optimize your monthly expenses according to your needs. A longer hold means lower EMI.

Attractive interest rates

Personal loans are available at competitive interest rates. As a result, you can enjoy affordable EMI. The interest rate is usually fixed. Your EMIs are also fixed for the life of the loan, and you don’t have to worry about changing interest rates.

Tax advantages

Depending on how the funds are used, you can claim tax allowances for your private loan.

For example, if you are using the loan to renovate or build a house, or to make a down payment on a house, you are entitled to a Section 24B tax deduction of up to Rs 2 lakhs for interest paid during a financial year. However, other use cases are subject to additional terms and conditions. Submit the required documents to understand how you can enjoy tax benefits on your personal loans.

Personal loans are in high demand these days. Before you decide on a personal loan, make sure that the amount used matches your payment capability. Please also read all General Terms and Conditions carefully. Many lenders, financial technology companies like TVS Credit, and banks offer personal loans.

Now that you are well-informed on all the aspects of a Personal Loan. So, wait no more and apply Digital Personal Loan from TVS Credit

Fulfil all your dreams with a hassle-free Personal Loan!

Posted on by Niranjan Mohan

A personal loan is a type of loan that is typically used for personal expenses, such as consolidating debt, paying for a vacation, or paying for a major home repair. Personal loans are typically unsecured, which means they are not backed by collateral such as a house or car. This means that the lender is taking on more risk, and as a result, personal loans tend to have higher interest rates than secured loans. online personal loans are available from banks, credit unions, and online lenders, and can be used for a variety of purposes.

How does it work?

Once approved, the lender transfers funds to your bank account, and you use the funds for your intended purpose. You will also have to start repaying the money immediately. During the loan term, your lender will likely report your account activity to the credit bureaus. Timely payments can help you get a positive credit score.

When comparing personal loans online or offline, pay attention to details. Note the following:

  • Interest Rate
  • Fees
  • Repayment Terms
  • Loan limits (minimum and maximum)
  • Collateral requirements

How are the rates determined?

Personal loan rates are typically determined based on a variety of factors, including the borrower’s credit score, income, debts, and the lender’s underwriting standards.

In general, borrowers with higher credit scores will qualify for lower interest rates because they are less risky borrowers. Lenders also consider the borrower’s income and debts when determining the interest rate, as these factors can affect the borrower’s ability to repay the loan.

Your Annual Percentage Rate is determined based on multiple factors, the most important of which is your credit score. If you have a good credit score, you may qualify for the lowest interest rate from a lender. The best interest rates are generally given to people with credit scores over 700. Some of the additional factors that may affect the APR offered to you are:

  • Annual Income:

    Lenders want to see a stable and reliable source of income that can be used to make monthly payments. This can also result in a cheaper APR.

  • Payment History:

    People who have a history of paying on time are generally eligible for lower rates.

  • Debt-to-Income Ratio:

    Your debt-to-income ratio is the number of your monthly debt payments divided by your gross monthly income. This number is an important part of your financial profile and overall lender profile to help gauge your ability to make loan payments.

Types of Personal Loans

Unsecured personal loans:

Most personal loans are unsecured, meaning you don’t need to post any collateral to qualify. With an unsecured personal loan, you receive cash and then pay back your loan with payments over a fixed payment period.

Secured personal loans:

You must post collateral to qualify for secured loans. Instead of putting down cash as collateral, you may be able to use other assets like a house, boat, or car. The lender can repossess these assets if you default on your payments.

Credit-builder loans:

These loans don’t extend you a line of credit. They are deposited into a savings account controlled by the lender, and you make payments on your balance for the duration of the loan. During this time, lenders review your payments to the credit bureaus to help you build a history of responsible credit use. At the end of the loan, you will receive your full payment minus any loan fees.

Specialized lenders:

Some service-oriented businesses offer personal loans to their customers to help them pay for their products or services. These loans are often convenient but do not always offer the best interest rates and terms.

Common uses of personal loans

One of the major benefits of a personal loan is that you can use your borrowed funds as you wish which makes personal loans diverse and flexible.

Unsecured personal loans are offered to consumers who need to consolidate high-interest credit card debt or debt from other loans. These loans typically have lower interest rates, which can help consumers save money on their monthly payments.

Big Events

Consumers with expensive events like weddings, honeymoons or graduations often apply for personal loans to fill the gaps in their budget. Once the event is over, they have the benefit of repaying their loan in fixed monthly instalments and a fixed interest rate over time.

Investing on self

Personal loans are common especially for educational purposes, such as pursuing a workplace certification or attending a career-enhancing course. You can also opt for a personal loan to pay for improving your self-image, such as dental implants or cosmetic surgery.

Home improvement projects

While home equity loans and home equity lines of credit (HELOCs) are popular with consumers looking to complete remodelling projects, these home improvement loans require you to put up your home as collateral. For this reason, many consumers are turning to unsecured personal loans rather than home equity products. They can borrow the money they need for their project on great terms and conditions but don’t have to put their house on the line.

Emergencies

Personal loans are beneficial for emergencies, like unexpected medical bills, urgent roof replacements, or even funeral expenses. Because some personal loans allow consumers to apply online and receive the money within a few business days, they can offer exceptional security and financial support when an emergency arises.

How to apply for personal loan?

If ready to apply for a personal loan, first follow these steps:

Pull your credits

A higher credit score improves your chances of getting a personal loan with the best rates and terms. If your credit score is on the low end, dispute any errors in your credit reports and take steps to improve your credit before you apply.

Pay off your debts when you can

A lower debt-to-income ratio can help you qualify for a loan with good terms. If yours is high (around 45% or more), it will help pay off some of your debt or increase your income.

Quotes from different lenders

Get quotes from multiple lenders. Once your finances are in order, get loan offers from various lenders. Compare personal loan rates, loan amounts, loan terms and lender reputation. Some lenders like TVS Credit offer a pre-qualification that allows you to assess the terms of your loan without damaging your credit.

Submit your documents

When you choose a lender, you must formally apply for the loan and submit various financial information. These can be bank statements or proof of payment. If you don’t have a job, be ready to show how you intend to make the payments. Some lenders accept alternative forms of income, such as unemployment benefits.

Receive your personal loan

If your loan application is accepted, the lender should send you the money within a few business days to use the funds for the intended purpose. Some lenders like TVS Credit are so convenient and hassle-free that you can get your loan approved within 2 minutes. Setting payment reminders can help you avoid late fees and bruising your credit.

If you need to borrow money and prefer the stability of a fixed payment schedule and monthly payment, a personal loan could be just what you need. and TVS Credit Personal Loan can be the right and hassle free option.

Fantastic 4 tips to improve your CIBIL score immediately

Posted on by Niranjan Mohan

Planning to take a loan or credit card?

Check CIBIL score right away!

There’s a chance of higher interest on loan or rejection of credit card if you have a poor credit score.

A good credit score is a must.

But, what is a good CIBIL score?

A credit score is a number assigned to an individual based on an analysis of his credit history. Your credit score will decide if you are worthy of borrowing a loan. A good credit score shows that an individual pays off his debts on time, thus increasing his chances of availing future loans faster and with lower interest. A credit score is a number between 300 to 900 and any number more than 700 is considered to be a good CIBIL score.

However, below 700 means getting a loan is a tough nut to crack.

The good news is that it is possible to improve your CIBIL score. So, stop worrying and put your best foot forward towards improving your CIBIL score.

Breeze through some of the best tips to improve your CIBIL score immediately:

1. Analyse your credit report and resolve the errors, if any!

You might think that your credit score is good. However, you must check your CIBIL score online using a CIBIL calculator. In case you have a bad score, it can be due to an administrative error. You might have paid off the loan and it might still show pending EMIs. Also, check for any suspicious activity; it could be fraud. Such errors or activities might affect your future borrowing power. If you find such errors, report it to CIBIL and resolve the dispute immediately. The revised score might be positive. [Check your CIBIL score on our Credit calculator]

2. Pay on time, every time!

While some people pay their bills late, some skip the payment completely. However, even a single late payment affects adversely on the credit score. So, it is always a good practice to make all the payment before the due date. Making payment at least five days before the due date and if paying by cheque, then 10 days before the due date will take your CIBIL score to the green zone.

3. Use your credit cards wisely!

Credit cards are a great tool for everyone. It comes with so many benefits; it provides enough credit for our necessities, reward points, free vouchers, and the peace of mind to roam without cash. However, you should limit the use of your credit card so as to avoid any issues with spending discipline. Some ask to follow the 30 percent credit utilisation rule, while some advise spending 50 percent of your limit. Let us go ahead with 40 percent to be on the safe side. Optimised use of credit card will facilitate you to get a good CIBIL score.

4. Avoid multiple loan/credit card applications in a short span!

Too many enquiries for loans and credit card in a short span don’t create a good impression. It shows that you are credit hungry and looking for credit from multiple sources. So, if you do not want a steep drop in your score, then you must stop applying for multiple credit cards and loans in a short span. Moreover, some lenders can also take an advantage of your situation and lure you in high-interest rate loans.

  • Bonus Tips:Avail the right mix of secured and unsecured loans.
  • Pay off loans with higher interest rates first.
  • Don’t settle loans with credit card.
  • Use the oldest credit card.
  • Get your first credit card smartly.
  • Increase your credit limit.

How do you get a loan for a used car?

Posted on by Niranjan Mohan

The Indian used car market is expected to grow at a CAGR of over 11% and the used car finance market, at a CAGR of 8%. This goes to show that prospective car owners are willing to go the extra mile to realise their dreams and Banks and Non-Banking Financial Companies (NBFCs) are stepping up to help.

Used car loan presents prospective buyers with the following benefits:

  • The loan amount is lower when compared to the loan amount for a new car. The used car loan calculator, therefore, will tabulate a lower monthly EMI.
  • The application process for a used car loan is simpler and requires minimum documents.
  • 100% used car finance may be available with some banks or NBFCs.

 

Eligibility criteria and documents required for TVS Credit Used Car Loan

Typically, anyone can apply for a used car loan. There are, however, some requirements that individuals who are salaried employees, are self-employed, are in a proprietorship and/or partnership firm, or private or public limited companies must meet.

Salaried

  • Age, address, ID and signature proof
  • Income document (salary slip/form 16/ITR with computation of income)
  • Bank statement OR Passbook Copy
  • Photocopy of vehicle RC book and insurance certificate
  • Pan Card

Self-Employed

  • GST certificate
  • Shop Act or business proof Underage
  • Address & ID Proof
  • Repayment track of existing or completed loan
  • TDS certificate
  • PAN Card

Proprietorship and/or Partnership Firm

  • Income document (salary slip/form 16/ITR with computation of income)
  • Photocopy of vehicle RC book and insurance certificate
  • Partnership deed with declaration for partnership firm
  • Age, address, ID, and signature proof
  • Repayment track of existing or completed loan
  • Shop Act or Business Proof
  • Bank statement OR Passbook Copy
  • PAN Card
  • TDS certificate
  • GST certificate

Private or Public Limited Companies

  • Age, address, ID, and signature proof
  • Income document (salary slip/form 16/ITR with computation of income)
  • Bank statement OR Passbook Copy
  • MOA/AOA with board resolution for private/public ltd. firm
  • PAN Card

 

Things to remember before getting a used car on loan

  • Check the car

Ensure that the car you want to purchase is in good condition and the seller is providing all the papers – registration and insurance – and correct vehicle history. TVS Credit offers loans on cars that are up to 12 years old.

  • Research used car finance

Before taking a loan, research the lender and their used car loan interest rates. TVS Credit provides used car loans that among up to 95% of the asset value.

  • Read the ‘Terms & Conditions’

Terms and conditions on used car finance vary from lender to lender. It is advised to thoroughly read repayment terms and other fine print before signing the application.

You can visit TVS Credit online or offline to fill out the application form. Along with the form, you must submit the required documents based on the eligibility criteria to qualify and obtain a used car loan.

10 Safe Online Behaviours to protect you from fraud

Posted on by Niranjan Mohan

Fraud awareness is becoming more and more important because with increased digitalization and the growing ease of banking, fraudsters are coming up with more innovative fraudulent practices. Typically, they pose as authorised personnel to obtain sensitive personal information and result in financial loss.

Common types of fraud that you should be aware of

  • Phishing links – Links to third party websites that look like genuine website are shared via SMS, social media, email, or instant messages. Fraudsters use these to secure your financial information.
  • Email/SMS/Call scams – Fake messages about loan availability or loan sanctions circulated via email, SMS, telephone calls.
  • Fake advertisements for extending loans – They advertise about personal loans at attractive and low interest but demand advance charges such as processing fee, GST, advance EMI, un-hold charges etc.
  • ATM card skimming – Fraudsters can place a dummy keypad or a small, well-hidden camera to capture your card PIN. They can also pretend to be other customers waiting or steal your card via skimming devices.
  • OTP-based Fraud – Fraudsters impersonate authorised personnel and send messages about loan availability or credit limit enhancement as well as a number to call. On calling, they ask for shared documents and details including OTPs and PINs.

 

10 ways to secure your financial information and transactions

  • 1. Monitor your accounts for unauthorised transactions. Notify corresponding authority in case of any unauthorised transaction.
  • 2. Do not click on links received from unknown IDs.
  • 3. Do not share your financial details with unauthorised personnel.
  • 4. Avoid using public Wi-Fi or free VPNs.
  • 5. Do not scan any QR Code or enter a PIN to receive money through UPI.
  • 6. Do not ask for help at the ATM from a stranger.
  • 7. Use passwords to protect your UPI apps and your smartphone.
  • 8. Do not use commonly used passwords like 12345 or Birthdays.
  • 9. Always look for spelling errors in messages that ask for sensitive details. If they have errors, they are fake.
  • 10. Turn off web browser’s auto-complete to prevent storing of card details and other sensitive information.

 

What are the steps TVS Credit takes for fraud prevention?

  • Provides official payment link on the website
  • Payment gateway is routed through the official website
  • The payment details are not of a personal account/UPI account

Beware of fraudulent calls/messages asking you to make payments to a personal bank/UPI account or via unknown web links. Before making a payment always ensure that the web link is an official TVS Credit payment link. Stay alert and stay safe.

For more information, watch our video by clicking here.

Used Commercial Vehicle – what lies ahead

Posted on by Niranjan Mohan

They are the unsung heroes of the Indian economy. Working long hours, they traverse great distances across varied terrain to ensure that warehouses, shelves, and refrigerators are all well-stocked.

Drivers of trucks, pick-up vans, and other commercial vehicles play a vital role in keeping the wheels of industry turning. Capable of reaching the remotest locations, their services provide the last-mile connectivity that other modes of transport do not. Moving incalculable tons of goods and numbers of people, it is no exaggeration to say that commercial vehicles are the lifeline of the Indian economy.

With the GDP expected to grow at a brisk 7.7%, a bright year seems in the offing for manufacturers and drivers of commercial vehicles. This upswing comes at a time when massive infrastructure-building projects are underway. Set to improve rural connectivity and boost industrial output, these projects shall not only demand, but also facilitate the growth of the commercial vehicle industry. This is further spurred by the tax reforms of last year that have streamlined the movement of goods and services.

With international manufacturers of commercial vehicles entering the fast-growing Indian market, owners and operators of trucks and light commercial vehicles will look to upgrade to the latest makes for higher levels of efficiency and comfort. This sets the stage for shorter replacement cycles, further augmenting the sales of commercial vehicles.

With automotive financiers rolling out ever-lucrative schemes to enterprising individuals looking to buy commercial vehicles, it’s now easier than ever to own one.

Everything you need to know about a Loan against Tractor or Tractor Refinance?

Posted on by Niranjan Mohan

A loan against a tractor means that you can refinance your current loan. You can get a new loan to pay off your old one while keeping the same number of payments and interest rates.

The loan against tractor or tractor refinance is a great option for the farmers and agricultural owners. It helps them to ensure that there is an additional source of income. This will be helpful for them because it doesn’t result in stress and keeps their income stable and on track. The bank will also pay more interest on this loan, so you don’t have to deal with any form of extra expenses after taking this loan against your tractor.

Things you should know about Tractor Refinance

Are you planning to buy a new or a used tractor? Do you want to refinance your old tractor loan? Do you want to improve your business by purchasing agricultural equipment?

Such questions must be answered before the last minute. Learning about loan against tractor can help you decide whether to take the next step in making your dreams come true.

Existing loan amount

The Loan Against Tractor or Refinancing Loan works as a financing solution for farmers who wish to get a loan amount against their machine. Farmers can apply for funds to borrow money from banks against their tractor, but it comes at a price: you must pay EMIs and principal outstanding amount on your previous loans that could have been recast into this new loan deal.

Tenure of your loan

A loan against tractor is a way to pay off a mortgage or borrow money, either for the down payment on your new tractor or for another purpose. It’s called an “accelerated payment plan,” which means that you’re refinancing sooner instead of waiting for the full term of your loan to end.

EMI of your loan

The EMI calculator is essential to determine the amount you will receive when you take a tractor loan. You can see how much of the loan amount will go into the foreclosure of your existing loan and how much cash you will get in hand to spend by specifying the EMI of your current loan.

Calculate your Tractor loan EMI on TVS Credit to determine your loan tenure. Through TVS Credit, you can also easily repay your EMI by using options like ECS, post-dated cheques or online payment, as per your convenience.

No. of EMIs paid

Before you consider a top-up or balance transfer tractor loan, you need to have paid at least 12 EMIs on your existing mortgage. The number of completed months on your existing contract is also a key factor in determining how much of the original loan amount has been paid already.

How to apply for a tractor loan or refinancing loan?

Tractor refinance is one of the best ways to reduce your current tractor loan burden and utilize that cash for something else. But are you eligible to take such a loan? Here are the eligibility criteria and other benefits of a tractor loan.

Easy eligibility

Small and medium enterprises, who are owners of a tractor as well as ownership of the land on which it stands, can avail of the tractor loan. All you need to have been proof of your ownership in case you’re already paying EMIs against your tractor. To avail of this facility, all you need is a bank account

Hassle-free documentation

You will be required to provide TVS Credit with the original RC of your tractor loan. At the same time, you only need to provide a bank account statement, KYC documents, and a copy of your PAN card. If you have an existing tractor loan, we’ll also need a 6-month bank statement from which the current EMI is paid.

Quick disbursal

TVS Credit tractor loan is designed to enable farmers to buy new tractors without delay. With their online application, it’s easy to apply and get the NOC within a day. Once this is collected, TVS Credit will transfer the full amount of your loan into your bank account in 48 hours.

Speedy loan processing

TVS Credit’s tractor loan is designed to enable farmers to buy new tractors without delay. With their online application, it’s easy to apply and get the NOC within a day. Once this is collected, they will transfer the full amount of your loan into your bank account in 48 hours.

Yes, it’s true you can opt for a hassle-free tractor loan. However, there is no need to pay a huge EMI as the interest rates are very reasonable at TVS Credit. So, if you have an old tractor that has been sitting in your shed for a year looking like an old friend, get it out and start using it again. It will be good exercise while you save a lot of money too.

Click here to get an instant tractor loan.

Know everything about used car loans

Posted on by Niranjan Mohan

In India, the used car market is expanding. According to statistics, there are 220 used or previously used cars available for purchase for every 100 new cars sold. The volume of used car sales is 50% more than sales of new vehicles.

Causes for the growing used car market

Reduced ownership periods

As non-refundable income rises, fewer people own cars for longer periods. Earlier, the ownership spans were roughly 7-8 years; currently, they are 4-5 years. Hence, more cars are being sold in the used car market.

Used cars at affordable rates

A used car is available at around 60-70% of the on-road price compared to a new car. Better manufacturing techniques ensure that a car’s quality does not degrade even after 2 to 3 years of use. Therefore, buying a used car can help you get the most for your money.

Get the best used car loan interest rates at TVS Credit with easy EMIs and great offers.

Improved platforms for buying and selling used cars

There are many options available for trade of used cars who offer additional benefits like maintenance of the car, assurance of quality, warranty, financing, and other added attractions like RC book transfer, etc. which makes the experience of buying a used car much easier.

Changed attitudes

Thanks to superior competitors and increased market clarity, buying a used automobile is no longer seen as inferior.

Owning more than one automobile in the home

With more people entering the workforce and public transportation still in its infancy in many American cities, buying two cars is quickly becoming a standard practise. People prefer to purchase second-hand automobiles as their second vehicle. Apply for a hassle-free loan from TVS Credit.

Increased ownership of cars

As the business rises for cab services, used automobiles are frequently favoured more than new cars due to cost considerations.

Easy access to financing

Used automobile buyers have more flexible alternatives for financing.

Want to finance used cars? Know more…

Types of cars financed

– Financing is available for all makes and models of used vehicles. However, when it comes to imported or extremely old autos, lenders have their reservations. These are subject to individual case approval.

Finance choices

– There are numerous financing options for second-hand cars. Individuals wishing to purchase used cars can turn to banks and other non-banking financial institutions like TVS Credit for assistance.

Car valuation

– The valuation of the vehicle is the most challenging aspect of financing a used car. A new car has a clearly defined price, but it might be difficult to determine a used car’s value.

The points to consider are – the distance travelled, the user type (personal or business use), the location of use (cars from flood-prone areas may not be chosen), any accidents or changes made to the automobile, the car’s clean title, etc.

Used-vehicle Loan to Value:

Lenders anticipate that a portion of the estimated value of the used car will be paid as a down payment. Lenders often use a loan-to-value ratio between 65 and 80%. However, certain lenders, including TVS Credit, do make exceptions.

Interest Rates for Used Car Loans

Buying a used car comes with risks for both the buyer and the lender. As a result, used automobile loans have slightly higher interest rates than new car loans.

Currently, used automobile loan rates are variable and range from 11 to 16 per cent. New car loan rates, meanwhile, begin at a significantly lower 7.75%.

Loan Terms for Used Cars

Used car loans are also influenced by the vehicle’s quality. However, because of how subjective these concerns are, most banks and financial institutions set a maximum loan term for used car loans.

Some lenders only lend for used automobiles that haven’t been driven for a particular number of years or up to a certain number of years from the date of first registration. Used car loans often have shorter terms than new automobile loans, which can last up to 7 years.

Importance of credit scores

Lenders try to offset the risk associated with financing for these automobiles by charging a higher interest rate on loans for used cars backed by an asset. As a result, the applicant’s credit scores are not given much weight.

So, it might be simpler for people with bad credit or no credit to get used automobile loans. A good credit score, however, can result in bonus points and the ability to bargain for lower used car interest rates.

Process of approving loans

In comparison to a new car, the loan approval process for a used car could take a little longer. When you obtain financing from affiliated finance companies like TVS Credit, this process might be accelerated.

Having more financing choices makes it possible for people to purchase used cars for less money. However, as with any other loans, we want to emphasise that maintaining good credit is more important than anything else. No matter if you want a new or used car, always borrow as much as you can afford to repay and make your payments on time.

Apply for Used Car loan with easy documentation from TVS Credit.

Opt for a hassle-free Two-Wheeler loan for your new bike!

Posted on by Niranjan Mohan

In our buzzing country, two-wheelers have become a popular choice, especially to avoid the hassle of public transport, and to save time during traffic hours.

But sometimes it may so happen that you might not have enough savings to buy a two-wheeler at once, or even if you have enough savings, you might not want to spend so much upfront. In such a situation, you can take a two-wheeler loan from a bank, a non-banking financial company, or credit companies like TVS credit.

Before applying for a two-wheeler loan, you must know its benefits.

Benefits of Two Wheeler Loans

Faster approvals

Gone are the days when you had to wait for months for a two-wheeler loan approval. Now, you can get a two-wheeler loan approved within minutes.

At TVS Credit, you can apply for a two-wheeler loan online with an attractive two-wheeler loan interest rate.

Better credit scores

You may be thinking why opt for a two-wheeler loan rather than paying via cash? But if you are a newbie to the world of finance and don’t know much about financials, then a two-wheeler loan is the best option to start your financial journey. Moreover, with TVS Credit’s online EMI calculator, you can easily calculate the repayment amount based on your affordability and other factors before applying for a two-wheeler loan.

Ample savings

If you’re looking to get a two-wheeler loan, but don’t want to pay a hefty amount of interest, it’s best to manage your finances wisely. Instead of paying cash up front, which may result in an overpay or an irregularity in payment, opt for a two-wheeler loan instead. It will allow you to save and manage your finances effectively.

Also, paying a small amount every month is far more financially prudent than paying a massive amount in one go. You can enjoy flexible repayment tenures and a doorstep documentation facility at TVS Credit.

Flexible Repayment Plans

Nowadays, two-wheeler loan repayment schedules are quite flexible. You will need to pay it back to the bank the two-wheeler loan amount in the form of instalments as Repayment schedule. Most of the banks give 12-48 months’ tenure. This will reduce your monthly EMI.

Low-Income Eligibility

If you can get a loan for your two-wheeler, why not take advantage of it? With this type of finance, you can also get insurance coverage and accidental cover. If you have a high loan amount, please quote the on-road price of the motorcycle rather than the showroom price. But be wary that on-road price consists of RTO, insurance, and ex-showroom price.

Two-Wheeler Loan Tax Exemption

When you opt for a two-wheeler loan, you will benefit two-wheeler loan tax exemption since you will be paying off the loan in instalments. It will save you a lot of money because once the loan is taken care of, you’ll be able to ride your bike without paying taxes and insurance.

With TVS Credit, you can benefit from competitive interest rates and hassle-free processing with approvals within 2 minutes. We offer complete transparency with no hidden costs throughout the borrowing process along with fast processing times. Check the to know more.

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