top of page
Writer's pictureDialabank

What should I know about a used Car Loan?

Updated: Apr 2, 2021


A good second-hand car is often bought with the assistance of a second-hand car loan. Used automobile loans are provided at competitive interest rates and are available with a repayment tenure of up to seven years. Some lenders give loans of up to 100 percent of the car’s worth. Most banks and NBFCs give used automobile loans. freelance individuals and salaried staff can avail themselves of a second-hand auto loan.


The main advantages and options of a second-hand auto loan are mentioned below-

  • The loan amount that's being availed is also less in comparison to a replacement auto loan. Therefore, your monthly EMIs are low.

  • Long reimbursement tenure.

  • Up to 100 percent of finance is provided by some banks and NBFCs.

  • The process to use for the loan is straightforward and might be completed online.

  • The insurance prices and depreciation rates are lower in comparison to a replacement automobile.

  • Minimum documents have to be submitted.

  • Certain banks and NBFCs supply different repayment terms.

Given below are a number of the things that have to be thought of once availing of a second-hand automobile loan-

  • The interest rates for a second-hand auto loan are higher in comparison to a replacement auto loan.

  • Certain NBFCs and banks don't give a loan if the automobile is over three years old.

  • The insurance value won't be lined within the loan amount.


The eligibility criteria that have to be met for salaried staff and freelance people can vary and are mentioned below-


Salaried staff:

  • Age Limit: 21-65 years

  • Income: a minimum of Rs.15,000 per month

  • Income Status: you want to be operating within the current organization for a minimum of a year.

Self-employed people

  • Age Limit: 25-65 years

  • Income: should build a profit of a minimum of Rs.1.5 100000 in an exceedingly year

  • Income Status: should be within the same line of business for a minimum of three years

The list of documents that has to be submitted once applying for a second-hand auto loan are mentioned below-

  • Application type:

  • Passport-size images

  • Car valuation report

Identity Proof: Any of the below-mentioned documents are often submitted as proof of identity:

  • Aadhaar Card

  • Passport

  • Driving License

  • Voter’s ID

Address Proof: Any of the below-mentioned documents are often 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 should be submitted as proof of income:

  • Profit and loss account

  • Balance sheet

  • Audit sheet

  • Form 16

  • Salary slip

  • Bank statements

How to Apply for a second-hand auto loan-

Offline:

  • Visit the bank branch or NBFC workplace wherever you'd wish to avail a loan.

  • Fill in the applying type.

  • Submit the mandatory documents to see if you're eligible for the loan.

  • Discuss the interest rates, process fees, etc., with the investor to method the loan.

  • Tips to create the application method simple

Online:

Do a radical analysis online to see for an investor that gives a second-hand auto loan at low-interest rates and an acceptable tenure. numerous banks and NBFCs supply used automobile loans at engaging interest rates. Allahabad Bank car loan provides home loans with the low-interest rates on second-hand cars.

  • Opt for an internet application method. This helps in saving time.

  • You can use the auto loan EMI calculator online to see the monthly payments. The calculator is straightforward to use and basic details like the tenure, loan quantity, process fee, and charge per unit should be entered.

  • Keep the relevant documents prepared. Any delay in submitting the documents can cause an extended time for the loan to be processed.

  • Choose a longtime investor so the loan method is fast.

Some of the necessary things that you just should do once you obtain a second-hand automobile: Check the automobile. Make sure that the car is checked completely. you'll take the assistance of a mechanic to check the automobile. If there are any problems with the automobile you'll discuss the value. Drive the automobile wherever the traffic is in a smaller amount, to see for any problems.

13 views0 comments

Comments


  • Twitter
  • Black Facebook Icon
bottom of page