Used Car Loan

Used Car Loans – Features and Benefits

The main benefits and features of a used car loan are mentioned below:

• The loan amount that is being availed may be less when compared to a new car loan. Therefore, your monthly EMIs will be low. Long repayment tenure.
• Up to 100% financing is provided by certain banks and NBFCs.
• The process to apply for the loan is simple and can be completed online.
• The insurance costs and depreciation rates are lower when compared to a new car.
• Minimum paperwork needs to be submitted.
• Certain banks and NBFCs offer flexible repayment terms.

Things to Keep in Mind While Applying for a Used Car Loan

Given below are some of the important points that must be considered when availing a used car loan:

• The interest rates for a used car loan are higher when compared to a new car loan.
• Certain NBFCs and banks do not provide a loan if the car is more than 3 years old.
• The insurance cost will not be covered in the loan amount.

Eligibility Criteria

The eligibility criteria that must be met for salaried employees and self-employed individuals will vary and are mentioned below:

Salaried Employees

• Age Limit: 21-65 years
• Income: At least Rs.15,000 per month
• Income Status: You must be working in the current organisation for at least a year

Self-employed Individuals

• Age Limit: 25-65 years
• Income: Must make a profit of at least Rs.1.5 lakh in a year
• Income Status: Must be in the same line of business for at least 3 years

Documents Required

The list of documents that must be submitted when applying for a used car loan is mentioned below:

• Application form
• Passport-size photographs
• Car valuation report

Identity Proof: Any of the below-mentioned documents can be submitted as proof of identity:

• Aadhaar Card
• Passport
• Driving License
• Voter's ID
• PAN Card

Address Proof: Any of the below-mentioned documents can be submitted as proof of address:

• Voter's ID
• LIC Policy
• Electricity Bill
• Aadhaar Card
• Driving License
• Ration Card
• Passport

Income Proof: The below-mentioned documents must be submitted as proof of income:

• Profit and loss account
• Balance sheet
• Audit sheet
• Form 16
• Salary slip
• Salary slip