If the COVID-19 pandemic has drained your resources creating serious cash problems, your existing car can come to your rescue and provide the necessary liquidity support in these difficult times. A new product has come in the market that will offer customers a loan against their existing vehicles. So all your cash problems are addressed while you continue to enjoy the drive in your car.
The unique loan offer has come from auto-tech company CARS24. Their loan product will allow customers to get a loan on their pre-owned car. Traditionally, a customer gets a financing option only when they are buying a new or pre-owned car.
As per CARS24's research, the number of customers selling their car due to a liquidity crunch has doubled as compared to pre-corona times. Tapping on to this opportunity, CARS24 will now give loans to those customers who do not wish to sell their cars otherwise. This will help customers to retain the ownership of the asset and at the same time get funds against it for their personal needs.
The company is making this service available in Delhi-NCR now and it would be available to the customers in Bengaluru and Hyderabad by next month. The product is proposed to be expanded to the other metros by the end of FY 2020.
Customers, applying for the loan against their car, will get benefit with features like same day loan approval and disbursement, up to 100% funding against the car's latest value (for vehicles up to 12 years' old), loan initiation with minimum documentation (PAN, address proof & bank statement) and additional benefits like the installation of an anti-theft device and easy foreclosure options, a company statement said.
Sharing the announcement, Vandita Kaul, vice- president, CARS24, said, "We have witnessed a lot of cases where people have shown interest in selling their cars to meet their financial needs. Knowing that owning a car is becoming a necessity these days, we came up with an initiative so that our customers can secure funds and retain their assets at the same time. Till now, we have disbursed loans worth Rs 35 lakh to our customers within this vertical and hope to strengthen this portfolio exponentially from here."
(With IANS Inputs)
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