In recent years, used cars have grown in popularity. Used cars are less expensive than new cars and are also better for the environment. Getting the best bargain on a used automobile involves market knowledge and diligent negotiating with dealerships. When acquiring a loan for a used car, a used car buyer must be smart when negotiating and be cautious of potential fraud.
To protect you from getting scammed and get the best deals on used car loans, we have provided you with an extensive guide to getting finance for second hand car. In this article, you will get information regarding used car loan eligibility, benefits, and documentation.
What Are the Features and Benefits of a Second-Hand Car Loan?
Have a look at the features and advantages of used auto loans before learning more information on used car loans:
- A used vehicle loan with a loan-to-value ratio of 90% makes it easier for you to buy a car of any brand without straining your budget.
- Any vehicle may be financed for used automobiles for a sum between 50,000 and 50 lakhs.
- The loan approval process is swift, and the application process is pretty simple.
- You can repay the loan amount over a flexible loan term of up to 5 years using a variety of repayment options.
- It features doorstep service and less documentation.
- This loan has affordable EMIs since the interest rates are fair.
- You may apply for this loan regardless of your employment status, whether you are salaried, self-employed, or a business owner you can apply for it.
- Due to the fact that the car is kept in trust until the loan is paid in full, you do not need to provide any security.
What Are the Eligibility Criteria for a Second-Hand Car Loan?
Check out the used car loan eligibility criteria listed below to see if you qualify for it or not:
- You must have lived in India for a year without relocating.
- You must be older than 18 years
- No requirements for monthly income.
- You must spend at least a year working for a company.
- If you’re a self-employed person, your firm must have been operating for at least a year.
What Documents Do I Need to Have for Applying for a Used Car Loan?
To apply for a used automobile loan, you must have the following paperwork:
- A passport-size photograph and a completed application
- KYC documents for verfying your identity and address
- Bank statement to confirm income
What Is the Application Procedure to Get Finance for a Used Car?
You have two options for applying for a used car loan: either physically completing all the steps at the local branch of your lending institution, or applying online from the comforts of your home. The following is the application procedure for second-hand car loan:
- Visit the browser-based used car loan website.
- Use the EMI calculator to get an estimate of your EMI
- Select “Apply for a Loan” to start the procedure
- After clicking it, a screen with an application form will appear.
- Fill out the application form with all the required information, including your name, phone number, email address, state, and city.
- Then select “Apply Now.”
When you’re looking for finance for second hand car, don’t rush the process. Check your credit score, necessary documentation, and used car loan eligibility before you apply for a loan. Also, before you start using the pre-owned car, get it serviced so that nothing is out of order. A used car loan is a boon for many people, and to make the most of it, you should have a look at all its attributes.