Buying a car is an exciting yet costly endeavour for most people in India. For healthcare professionals, having a reliable vehicle can make commuting to hospitals, clinics, and patient visits much more convenient. However, healthcare workers also have significant financial obligations, including housing, medical school loans, insurance premiums, and more.
This is where used car loans for professionals from banks, non-banking financial companies (NBFCs), and other financial institutions in India can help. They help healthcare professionals buy a used car without affecting their budget by paying Equated Monthly Instalments (EMIs). To learn more about the benefits of used car loans for healthcare professionals, read this article:
Used Car Loan Advantages for Medical Practitioners
Some of the compelling benefits of used car loans for healthcare professionals are:
1. Affordable Option
Used car loans offer healthcare professionals in India an affordable method to finance a quality pre-owned car that meets their transportation needs. Compared to paying the full cost upfront, used auto loans allow applicants to spread payments over years through equated monthly instalments (EMIs). As a result, the upfront expenditure is much lower and more achievable. The EMIs can match the individual's cash flow and repayment capability as well, based on factors like monthly income, age, credit score, expenses, and loan eligibility.
2. Lower Interest Rates on Used Car Loans
Interest rates on used cars are almost lower than those on brand-new vehicles, starting around 10%. For instance, new hatchback or sedan car loans typically carry high interest rates based on the applicant's eligibility. Meanwhile, used car loan rates for similar vehicle categories range between 10-12% based on factors such as income level, credit score, expenses and loan amount.
Used cars depreciate faster in the initial years, resulting in a lower current value compared to new cars. Since the loan amount is based on the car's present value, borrowers may pay less total interest if the principal is lower, even if the rate is slightly higher.
3. Lower EMIs
EMIs for used car loans are often lower than those for new car loans primarily due to the smaller loan amounts, making repayments more manageable for healthcare professionals. For example, a ₹4 lakh used car loan may carry an EMI of just ₹9,500 over 60 months. On the other hand, a new ₹ 8 lakh car loan for 5 years has an EMI of ₹16,500 monthly, assuming similar interest rates.
The difference of ₹7,000 monthly can be allocated to other expenses. More importantly, lower EMIs ensure loan repayments do not get stretched beyond the means of healthcare practitioners who have several other costs too.
4. Flexible Payment Plans for Healthcare Providers
Used auto loans allow customising loan amounts between 70% and 85% of the car's valuation based on financial institutions’ policies. Thus, applicants can make lower down payments while availing sufficient financing.
Tenures ranging from 12 months to 48 months can be selected as well, depending on the applicant's repayment capacity and income stability. Hence, applicants can structure instalments matching their cash flows. This flexibility prevents repayment defaults.
5. Minimal Documentation
Banks and NBFCs involved in used car finance require fairly minimal paperwork from salaried applicants like doctors, nurses, medical staff, etc. Some of the typical documents that a bank or NBFC may ask for are: PAN card, ID proof, address proof, latest salary slips, and bank statements may be adequate.
Some lenders even offer e-approval loans and loan approvals within hours for certain profiles, such as repeat customers. This saves time and effort for healthcare practitioners already struggling with hectic schedules.
6. Retain Savings
By not paying full used car prices upfront, applicants prevent utilising their full savings. Instead, they can use their savings for other essential expenses like children’s education, medical needs, house purchase, etc. Loan repayments occur gradually each month at affordable rates.
7. Wider Vehicle Options
Based on savings levels, many healthcare professionals can only afford small hatchbacks or compact sedans by paying 100% of the car prices upfront. However, qualifying for used car loans, even for shorter durations, permits buying pricier vehicles with better features, space, performance, etc. Applicants get wider options across segments, brands and price ranges within their budgets.
8. Additional Perks
As part of privileged customer programs, some used car financiers provide special discounts, benefits and services exclusively to healthcare workers. This includes faster document verification, loan approvals, foreclosure facilities, free vehicle servicing, loyalty rewards etc. Such value-added offerings allow further savings on interest and expenses.
Conclusion
Used car loans deliver multiple advantages to healthcare professionals in India seeking affordable finance for reliable vehicles. Lower EMIs, interest rates and large loan amounts make owning pre-owned vehicles practical for doctors, nurses, and medical staff on a budget. With minimal documentation and quicker approvals, used auto loans simplify the financing process considerably. Shriram Finance also provides used car loans with attractive interest rates starting from 10% p.a., flexible repayment tenures up to 48 months, and financing up to 85% of the car’s value. Healthcare practitioners must assess multiple leading financiers to identify the most suitable and economical used car loan options for their income and expenses.
