Everything To Know About Used Car Loan

Many people wish to own a car. Having a car or a bike allows you to commute at your own pace and schedule. It is a finer experience to buy a brand-new car than a used one, yet it makes more financial sense to buy a used car. You can easily apply for a used car Loan to fulfil your dream of owning a vehicle. Aside from savings, purchasing a second-hand car provides numerous advantages. Read on to learn more about used car loans and the benefits of buying a second-hand car on EMI.

The benefit of taking a second-hand car on EMI

There are many benefits of buying a second-hand car on EMI. They are as follows:

Reduces financial burden: A second-hand car reduces financial obligations, and you can buy a four-wheeler at a much more affordable cost. And buying a second-hand car further reduces the burden by dividing expenses into affordable EMI.

Can be repaid in easy EMIs: A used car loan can be repaid into easy, Equal Monthly Instalments that will put any extra burden on your budget.

Flexible repayment option: Many lenders and banks offer their flexibility to choose the loan amount. You can select the amount and tenure according to your budget.

Attractive interest rate: Many financial institutions offer car loans with attractive interest rates. This makes buying a used car even more cost-efficient.

Quick approvals: Nowadays, application processes and support are even more efficient and can be done online in a few simple steps.

How to apply for a used car loan?

You can apply for a used car loan by following the steps below.

The following are the processes for applying for a used car loan online:

  • Find a reliable lender or bank that provides low-interest four-wheeler loans.
  • Go to their official website and fill out the application.
  • Choose the loan amount and repayment duration that best suits your financial circumstances. The next step is to submit the necessary documentation.
  • Once you’ve submitted the appropriate paperwork and information, the lender will evaluate it and complete your four-wheeler loan application.
  • Once your information has been verified, your application will be approved.

Below are a few steps to apply for an offline pre-owned car loan.

  • Determine which lender or bank you wish to approach for a used car loan.
  • Contact the branch to discuss your alternatives, including the best amount and term.
  • Provide the required information and paperwork.
  • Your application is complete and accepted when the bank validates all of your given information.

Before applying for a second-hand car on EMI, check the interest rate, processing fees, and other extra costs. Now that you’ve learned about the application process, you should know the eligibility requirements and evidence needed for a used car loan.

Eligibility for a used car loan

The eligibility criteria for a used car loan for salaried and self-employed individuals are as follows:

Eligibility criteria for salaried individuals

  • The individual must be an Indian resident.
  • They should be at least 21 years old when applying for car finance.
  • The maximum age of the individual must be 60 years at the time of maturity of the loan.
  • Income requirement as per the finance amount and terms of the bank.

Eligibility criteria for Self-employed

  • The applicant must be an Indian resident.
  • The maximum age at the time of maturity must be 65 years.
  • The business should be in existence for at least three years.

If eligibility criteria may differ from one lender to another. It depends on the terms and conditions of the bank or lender you choose.

Documents required for a second hand car on EMI

The documents required for a used car loan are as follows:

Photo identity: PAN card, Driving licence, Aadhar card, or passport.

Address proof: Electricity bill, passport, or rent agreement.

Proof of age: Birth certificate, school/college leaving certificate, passport, driving licence, or PAN card.

Salary or income proof: Salary slips, certificates, latest form 16, or bank statements reflecting salary credits.

Choosing the right car for your budget takes a lot of effort. Even if you have a limited budget, you can buy a vehicle that is much less expensive than a new car. A used car loan can help you with this. It is quick and convenient to obtain a loan for used cars. With a few simple steps, you may quickly apply online and offline. Please continue reading to learn more about used vehicle loans and how to apply for them. Always prepare the loan application documents beforehand to avoid any last-minute hassles. Contact your lender to learn about the documents you may require.

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