You can always buy a used car to bring your dream car home without burning a hole in your pocket. You can get a car loan for a used car and pay the amount of the automobile in simple, affordable EMIs. Many banks and commercial institutions also provide used automobile loans that you can apply for from the comfort of your home. Read further to learn more about used car loans and how to apply for them.
Eligibility for a second-hand car loan
The eligibility for pre-owned car loans for salaried and self-employed individuals is as follows:
Salaried individuals
- The individual must be an Indian resident.
- They should be at least 21 years old when applying for car finance.
- The maximum age of the individual must be 60 years at the time of maturity of the loan.
- Income requirement as per the finance amount and terms of the bank.
Self-employed
- The applicant must be an Indian resident.
- The maximum age at the time of maturity must be 65 years.
- The business should be in existence for at least three years.
- Eligibility criteria may differ from one lender to another. It depends on the terms and conditions of the bank or lender you choose.
- They should be at least 21 years old when applying for car finance.
- The maximum age of the individual must be 60 years at the time of maturity of the loan.
- Income requirement as per the finance amount and terms of the bank.
Eligibility criteria may differ from one lender to another. It depends on the terms and conditions of the bank or lender you choose.
Documents required for a car loan for a used car
The documents required for a second-hand car loan are as follows:
Photo identity: PAN card, Driving licence, Aadhar card, or passport.
Address proof: Electricity bill, passport, or rent agreement.
Proof of age: Birth certificate, school/college leaving certificate, passport, driving licence, or PAN card.
Salary or income proof: Salary slips, certificates, latest form 16, or bank statements reflecting salary credits.
Always prepare the loan application documents beforehand to avoid any last-minute hassles. Contact your lender to learn about the documents you may require.
How to apply for a car loan for a used car
Now that you know about eligibility and the document required for a used car loan, you can easily apply for a car loan for used car offline and online.
Below are the steps to apply for a second-hand car loan in online mode:
- Search for a reputed lender or bank that provides affordable two-wheeler loans.
- Visit their official site and fill out the application provided.
- Choose the loan amount and repayment tenure you want to apply for, depending on your financial budget.
- The next step is to provide all the required documents.
Once you have submitted all the information and documents, the lender will check all these details and process your two-wheeler loan application. Your application will be approved after your details have been verified.
Below are a few steps to apply for an offline pre-owned car loan.
- Locate a lender or bank you want to approach for a pre-owned car loan.
- Contact the loan manager or customer relationship manager to discuss your option and what amount and tenure would suit you best.
- Provide all the required details and documents to the bank or lender.
- After the bank verifies all the details provided, your application gets processed and approved.
Keep in mind to always check the interest rate, processing fees, and other additional charges before applying for a preowned car loan.
Calculate the EMI by using an online second-hand car EMI calculator beforehand to estimate if you can afford the loan and fit the monthly payment into your budget.
What is a second-hand car EMI calculator?
A second hand car EMI calculator is the easiest way to determine the amount you need to repay each month to the lender. You will need a few details to calculate your auto loan EMI amount using one of these online second-hand car EMI calculators. This is calculated based on your loan amount, interest rate, and loan term. The following information is required:
- The estimated loan amount.
- The down payment amount.
- The estimated average interest rate.
- The type of interest rate you want.
- The plan’s duration.
Some calculators require all of these details, but others may require a subset. Input the needed information in the designated box and hit enter to obtain your results. You can also experiment with other instalment amounts by changing the variables.
Benefits of using a second-hand car EMI calculator
- It is simple to use and free, requiring only a few pieces of information like loan amount, interest rate and repayment period to know your monthly obligations.
- EMI calculator can aid you in your financial planning. It can help you decide what offer suits you best based on your salary and other monthly expenses.
- It produces error-free and accurate results. When you use an EMI calculator, you don’t have to spend hours doing manual calculations and figuring out your EMI.
Before your loan application is approved, ensure you meet the qualifying standards, such as your monthly earnings, CIBIL or credit score, etc. Your application may only be accepted if you meet these standards, and your credit score may suffer. To enhance your chances of approval, learn about the qualifying requirements for a car loan for used car and the procedure involved before applying.
