Buying a car is an expensive decision. Increased prices of vehicles in India are a big concern for many. However, there is a more convenient option- buying a second-hand car. In addition, you can utilise a used car loan to bring home your dream car. These are easy loans with minimal documentation available at competitive interest rates.
India’s used car financing market is projected to expand at a CAGR (compound annual growth rate) of 11% by 2027, valued at US $14.87 Billion. Following a paperless process, making an application for a car loan for used car is fast and can be completed within a few minutes.
Get a Second-hand Car Loan
Individuals can get a loan of up to 100% for specific car models. Following are the steps to get second-hand car loans online:
1. Check the Eligibility Criteria
Lenders want loan applicants to meet their loan eligibility criteria well. Loan applicants can utilise an online ‘used car loan EMI calculator’ to check the EMIs they need to pay during the loan tenure.
Common loan eligibility conditions with reputed lenders are as follows:
– Income: A salaried individual, self-employed person or agriculturist can apply for a used car loan. For salaried applicants, the minimum annual income should be Rs.1,80,000 Self-employed persons should have documented an annual net profit of Rs.1,50,000.
– Age Limit: The age limit is 21-60 years for loan applicants.
It helps to know the loan amount one can apply for.
2. Preparation for Documentation
The documentation requirement for a car loan for used cars is easy. The following are the documents required to secure a loan:
– Valid ID Proof – Passport/Aadhar Card/Voter ID/PAN (Permanent Account Number)/driving license
– Valid Address Proof – Passport/Aadhar/Voter ID card/Utility bill/Ration card
– Income Proof: Income Tax Return (ITR) acknowledgement copy, Form 16, Salary Slip
– Asset Proof: Latest building/house/land tax receipt.
– Recent passport-size photograph
3. Determine the Best-suited Loan Tenure
Second-hand car loans are offered with flexible tenure to ease the repayment for borrowers. Lenders can offer a loan with a repayment tenure ranging from 12 to 60 months. Individuals looking for a small amount of EMIs can consider choosing a long-term loan. However, they should consider the overall cost of the loan at the end of the tenure. Short-term loans help borrowers to save on loan costs. Lenders provide an online ‘used car loan EMI calculator’ to determine a suitable loan tenure.
4. Start Filling Out the Online Application
With such checks and documents, individuals can start the application process.
– Access the online application at the official website of the lender. Fill out the required personal and employment details. Enter the loan amount as per the eligibility for car loan for used cars.
– Submit scanned copies of the required documents.
– Get the used car loan approved and receive funds in a bank account. Get ready to drive away in your dream car.
Get adequate funds against a pre-owned car loan, and do not compromise on the dream car. Secure the best loan offering as high as 100% of the car’s value and repay it during a convenient repayment tenure.