Used car loan

Buying A Used Car is Better with Used car loan

You can use a used car loan to get a dependable used car. Loans for used cars are available at tempting interest rates and have repayment terms of up to 7 years. Lenders offer loans up to 100% of the value of the vehicle. Almost all lenders offer loans for old cars. Loans for used cars are available to both self-employed individuals and employed personnel.

Benefits of used car loans:

  1. Pre-approved offers- Lenders provide pre-approved loan offers to their existing customers. So, the consumers don’t need to worry about the eligibility criteria of documentation. They are already eligible for this credit line, and the lender already has the basic documents of the consumer.
  2. Greater Loan Amount- You can get a loan up to Rs. 50 lakh to purchase a used car. 100% of the car’s value will be provided to you, while a loan for a new car only provides 90% to 95% of the car’s value. So, with used car loans, you don’t need to worry about funding. You don’t need to acquire any money from anywhere else. The total amount is covered under one loan.
  3. Exceptional Interest Rates- There are higher loan rates for used vehicles due to the risks involved for both buyer and lender. But reputed lenders’ rates remain unmatched. Also, you can use a free interest rate calculator to calculate the interest, EMI, etc.
  4. Versatile Terms- It allows you to choose your loan amount, loan term, and EMI schedule. You can choose a payment method that suits you best, including postdated checks, online payments, and ECS. 
  5. Very little paperwork- Almost the entire process for a used vehicle loan can be completed online. The loan application form is the sole paperwork that must be submitted at a branch. The loan application process is hassle-free because the documentation needed is minimal.

The easy eligibility criteria for this credit line:

Pre-owned car loan eligibility is based on the product and the individual valuation. All loans are granted at the lending company’s sole discretion. The following are the essential eligibility requirements:

  1. Salaried persons:
  • Indian citizens only
  • At least 21 years old.
  • 67 years is the maximum age for loan maturity.
  • Income requirements according to the vehicle’s model, age, and the repayment period.
  1. Self-employed:
  • At least 24 years old.
  • The maximum loan maturity age is 72 years.
  • A year’s experience or more in the business.
  • There is no age restriction for partnerships, Pvt. Ltd., and Ltd. companies.

Documents required:

  • Application form.
  • 1 latest colour photograph.
  • ID and address proof.
  • Income proof or income assessment that the lender’s executive does.
  • Bank statement.
  • RC copy.
  • Insurance policy.
  • Valuation from authorized valuation agent.

The easy application process to avail of this loan:

  • Complete the application form.
  • Submit the required paperwork to see if you qualify for the loan.
  • Examine the loan processing costs, interest rates, and other details with the lender.

Read Also: A Used Car Loan is the Best Way to Finance Second-Hand Car

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