You can use a used car loan to purchase a good second hand car. A used car loan comes with a favorable interest rate and a repayment period of up to seven years. Depending on the lender, loans up to 100% of the car’s value may be available. NBFCs and banks are usually able to provide Used Car Loans. Individuals who are self-employed and employees with salaries can apply for used car loans.
Benefits you Could Expect From a Used Car Loan
Below are the main advantages and features of a pre-owned car loan:
Compared to a new car loan, the loan amount may be less. Therefore, you will have a low monthly EMI.
An extended repayment period.
Certain banks and non-bank financial companies provide 100% financing.
You can apply online for a loan, and the process is straightforward.
Compared to a new car, used cars have lower insurance costs and depreciation rates.
Documentation is minimally required.
Several banks and non-bank financial companies offer flexible repayment terms.
Eligibility
Individuals employed by a company or corporation and self-employed individuals must meet different eligibility low interest personal loan criteria. They are listed below:
Salaried employees that fall within 21 to 67 years are eligible. They need to have an income of at least Rs. 22000, depending on their city of residence.
Documents
Form of application
Passport-size photographs
An appraisal of a car
ID proof (passport, Aadhaar card, Voter ID or PAN card)
Address Proof (Voter ID, LIC policy, Aadhaar card, electricity bills, ration card, driving license, passport)
Income proof (Audit sheet, balance sheets, Form 16, salary slip, bank statements, profit and loss statements)
How to apply Used Car Loan
Check online for a lender offering low-interest rates and a suitable tenor before applying for a used car loan. Look for a reputable lender so the loan process is as smooth as possible. Several banks and non-bank financial companies offer attractive rates on used car loans.
You will need to complete the low-interest personal loan application at the branch of the bank or the NBFC, where you plan to obtain the loan. Make sure to submit the necessary documents to determine your eligibility. To process the loan, it would be best if you speak with the lender first about the interest rates and processing fees.
It would be convenient for you if you have applied online. You’d be able to make payments in a more convenient way. Simple to use, these tools require basic information like loan tenor, loan amount, processing fee, and interest rate.
Always have the relevant documents on hand, whether online or offline. The loan processing will take longer if the documents are not submitted on time. Since we are talking about a used car loan application process, you need to consider the vehicle you would like to purchase.
You should conduct a thorough inspection of the car. A mechanic can assist you in conducting the inspection. Also, a mechanic can help you negotiate the price if any issues are found with the car. Driving in a less congested area will allow you to observe any vibrations.
A thorough check of the insurance paperwork and registration certificate is crucial. Ensure that the car’s engine number and chassis number match those on the copies. As soon as you’ve purchased the car, ensure that the registration certificate is transferred to your name. A NOC is needed if the vehicle is registered in another state. A NOC is also required if the previous owner has financed the car.
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