The used car market in India is on a growth curve, which means that if you are looking to buy a used car, you can get an amazing deal on it.
What’s more, the availability of funds from leading lenders is also another favourable thing to help you buy a used vehicle. However, before you go ahead and opt for the used car loan financing, you should be aware of its key aspects. Loan also helps to manage your personal finance.
Here is a quick guide that will help you understand the used car personal loan. Read on!
What is a used car loan financing?
A personal loan for used car is an unsecured finance mode offered by renowned banks, including non-banking finance companies (NBFCs). You don’t need to pledge any collateral for availing the loan and hence, it is a fast option to get funds.
If you have a robust Credit Score along with a fine repayment history, then you will get the funds quickly.
The final loan amount offered varies from lenders to lenders and on multiple factors related to eligibility and documentation. However, the top-notch financial companies let you borrow a higher loan amount of up to Rs.25 lakh.
What is the loan duration for the used car loan financing?
The loan tenure for used car loans also varies from lenders to lenders. An average loan tenor may range from 12 months to 60 months or even more.
You should opt for a tenor that matches your repayment capacity easily. You should know that going for a higher loan tenor reduces the monthly EMIs, but increases the interest outgo.
On the other hand, going for a shorter tenor increases your EMI amount, but let you pay fewer interest costs along with helping you close the loan quickly.
What are the eligibility criteria for the used car loan financing?
When it comes to used car loan finance, there is a set of eligibility conditions that you need to meet for availing the same. Have a look at the key eligibility factors to know more.
- You should be aged between 23-55 years
- You should be employed with an MNC, public or a private limited company
- You need to be a residing citizen of India
What are the documents required for applying for the used car loan?
Along with meeting the mentioned eligibility conditions, you also need to furnish a set of easy to furnish documents such as:
- Your KYC documents
- Your employee ID Card
- Last 2 months’ Salary Slips
- Previous 6 months’ bank account statement of the salaried bank account
How to apply for the used car loan financing?
You can easily apply for the second hand car financing by following some simple steps such as:
- Fill in your personal, financial and employment details
- Select the desired loan amount and duration that will match your needs to enjoy instant approval
- Submit your documents to the concerned authorities of your lender
- Get the desired used car loan amount into your bank account within 24 hours
A pre-owned car funding facility is a unique one that may help fulfil the long-craved dream of owning a car. You are now aware of some significant elements of the used car loan financing. Hence, now applying for it will not be an issue. If you are ready to opt for the used car loan facility, then you can do that online easily.
Bajaj Finserv presents pre-approved deals on personal loans, home loans, business loans and more. It can simplify your loan procedure to make it less time-consuming.
You can explore your pre-approved loan offer after sharing your basic details such as your name and mobile number.
