Are you willing to buy a pre-owned car for long, but your savings and investments are not enough to help you arrange the funds?
If yes, then many leading lenders in India can provide you with the facility of second hand car finance at reasonable interest rates.
If you wish to know about some details of the pre-owned car loan, then you should go through this write-up to dig deeper. Read on!
What is a Second Hand Car Loan?
Second hand car finance is nothing but an extension of a personal loan facility which is designed by lenders to help you get funds to buy a pre-owned car. A second hand car loan is an unsecured funding facility for which, you don’t need to submit any collateral. It is offered as per your creditworthiness and lender’s eligibility and terms and conditions.
As per your financial profile and eligibility, you can borrow an amount as high as up to Rs.25 lakh from leading lenders. Thus, no matter which pre-owned car you wish to buy, you can do that without worrying about the lack of funds.
A quick look at some pre owned car loan eligibility criteria
Before you go ahead and apply for a second hand car loan, you should check a lender’s eligibility criteria and required documents. It will help you approach the loan application with confidence and shoo away the chances of rejection. Here are some basic eligibility criteria of lenders for second hand car finance:
- You need to be a resident citizen of India
- Your age needs to be between 23-55 years
- You should be employed with an MNC, private or a public limited company
You also need to submit some basic personal loan documents to complete your eligibility such as:
- KYC documents
- Employee ID Card
- Previous 2 months’ salary slips
- Salaried bank account’s last 3 months’ statements
Second hand car finance – Vital features and benefits
Applying for a pre owned car loan offer you with many features and benefits such as:
- A large loan amount – You can borrow up to Rs.25 lakh to finance any car of your choice. The loan is offered at a reasonable rate of interest, and it may be a bit higher being unsecured ones. But, borrowers with a higher CIBIL score of around 750 can enjoy a lower rate due to strong repayment capacity.
- Flexi loan feature to save 45% on EMI payments – Many lenders let you avail of the flexi loan facility to pay only the interest on utilized money as EMI. The rest of the loan amount gets settled after the end of the loan tenor. This way, you can save up to 45% on EMI payments on a second hand car loan.
- Flexible repayment tenor – Applying for a pre owned car loan does not mean stressing your wallets to repay the loan soon. You can spread the loan cost over a tenor ranging 12-60 months to pay in smaller instalments. However, you should not opt for a longer tenor as it means paying higher interest payments to lenders.
- Loan approval within 5 minutes – Once you meet the lender’s personal loan eligibility, submit the documents after filling the online form, you can get the approval within 5 minutes.
- Money disbursement within 24 hours – After you have secured the pre owned car loan approval; you can get the money disbursed into your account within 24 hours.
- Minimal documentation – As discussed earlier, you only need to submit some basic documents related to your personal and financial profiles. The required documents for second hand car finance are easy to furnish.
- Online loan account management – You don’t need to visit your creditor physically after availing the loan to track its details or status. Lenders let you know the loan details via their digital customer portals right from anywhere.
Applying for the second hand car loan would now be easier as you are aware of the details of the same along with the eligibility conditions and the required documents.
You can also browse a third-party website to compare all such listed second hand car loans and opt for one that best suits your needs and repayment capacity. If you are still unsure about the pre owned car loan, then you can get in touch with a financial expert.
Applying for the second hand car loan is super easy these days as you can do that online on a lender’s website.