Used Car Loan Articles

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. 

In India, auto loans typically span several years, with applicants paying nearly double the original loan amount when interest and other charges levied by the lending institutions are included. Over the duration of the loan tenure, you slowly build equity in the car, which refers to its current resale value minus the pending loan amount.

As a self-employed professional, bringing home a steady pay check every month is never guaranteed. Income can fluctuate dramatically based on business cycles, client payments, and general economic conditions. So, when planning to take on a major recurring expense like a used car loan, meticulously managing your overall finances before and after securing financing becomes critical. 

For medical practitioners in India, owning a reliable car brings immense convenience when commuting to hospitals, clinics, diagnostic centres, and patients’ homes at odd hours almost daily. However, the high prices of new cars and even pre-owned models make financing the only viable option for most resident doctors, nurses, technicians and support staff working in the healthcare sector.

Owning a car is a significant investment. Over the tenure of your car loan, you end up repaying far more than what you actually borrowed, owing to interest, processing fees and other charges levied by banks and non-banking financial companies (NBFCs). As you continue your monthly repayments, you slowly build equity in your car, which is the current resale value minus what you still owe on the loan.