Second-Hand Car Loan

How to Apply for a Second-Hand Car Loan

Sometimes, people don’t have enough money to buy a new car. It’s not easy for them to save money to buy their dream car. So, to make their dream a reality, banks and private financiers have offered different schemes for a second-hand car loan. People can easily own a car by availing of this loan scheme. You can repay the loan amount at a given time, which will be divided into simple EMIs. That can help you with the savings and maintain your budget as well.

To avail of this loan, you simply need to fill in the application form of the bank or financier of your choice and follow the further process. Every company has different schemes that suit its customers. The used car loan rates, flexible tenure, minimal documentation, etc. We will provide you with all the details you need to know to apply for the loan in this article:

Eligibility Criteria for Second-Hand Car Loans

The eligibility criteria for the second-hand car loan are as follows:

  • should be an Indian resident only.
  • should be between the ages of 21 and 65 years old.
  • should be salaried or self-employed professionals.
  • should have a minimum experience of 3 years as a salaried employee and should have business continuity of at least 4 years as a self-employed individual.
  • A minimum earning of 1 LPA for salaried employees and a minimum earning of 1.5 LPA for self-employed individuals.
  • Loan tenure duration for salaried employees is between 12 months and 300 months, and for self-employed individuals, it ranges from 12 months to 360 months.

If an applicant matches all of the criteria for a second-hand car loan, all they need to do next is fill out the application form of the preferred loan company or bank online or visit the nearest branch office to begin the document verification process.

Documentation Required for a Second-Hand Car Loan

The documentation that an applicant requires to apply for a second-hand car loan is mentioned below:

For salaried employees:

1.) Any copy of the following documents as Identity and Address Proof.

  • Passport
  • Aadhar Card
  • A driver’s license
  • Voter Identification Card
  • PAN Card
  • A Job Offer Letter
  • or any other proof that the bank asks for as proof of identity and address.

2.) A copy of any of the documents listed below as proof of income

  • The most recent salary slip
  • Latest ITR or Form No. 16
  • bank statement of the past six months.

For self-employed individuals:

1.) Any copy of the following documents as Identity and Address Proof.

  • Passport
  • Aadhar Card
  • A driver’s license
  • Voter Identification Card
  • PAN card
  • electricity bill
  • Water Bill
  • or any other proof that the bank asks for as proof of identity and address.

2.) A copy of any of the documents listed below as proof of income

  • ITR of the past three years with computation
  • bank statement of the past year.
  • GST Certificate.

These documents, required for the loan, will help you get the loan easily as the used car loan rates are lower and the tenure period for repayment is longer.

Benefits of Choosing a Second-Hand Car Loan

The primary benefits of choosing a second-hand car loan are mentioned below:

  • A few banks provide loans for up to a whopping amount of 2.5 crores on a wide range of used cars, commercial vehicles, and even multi-utility vehicles.
  • You can borrow up to 100% of the total amount of the used car.
  • Used car loan rates are much lower than new car loan rates.
  • As there is tough competition in the market, the banks and private financiers provide the lowest interest rates and attractive offers to attract more customers.
  • Officials will help you with every step from start to finish for you to avail of the loan.
  • The repayment tenure provided by the banks on second-hand car loans is very flexible. You can choose the repayment tenure according to your convenience, from 12 months to 360 months in some cases.
  • As the repayment tenure is longer, the EMIs are pocket-friendly, making it more convenient for you to hit your regular budget.
  • The application process for the loan is quick and hassle-free with minimal documentation. The disbursement of the amount is much quicker comparatively.
  • You can even avail the facility of KYC document verification at your doorstep without even visiting the office. Or else, there is always an option to visit the nearest branch, where you can clear confusing queries too.

Conclusion

It is best to conclude it with the fact that you can go for the option of choosing to buy a second-hand car by borrowing a second-hand car loan from one of the suitable banking partners or private financier company of your choice. It will help you in owning your dream car without even burning a hole in your pocket. And you can also continue to do the savings and maintain your budget too.