Used Car Loan

A good second-hand car can be bought with the help of a used car loan. Used car loans are provided at attractive interest rates and come with repayment tenure of up to 7 years.

Certain lenders provide loans of up to 100% of the car's value. Most banks and NBFCs provide used car loans. Self-employed individuals and salaried employees can avail themselves of a 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 for Used Car Loans

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 organization 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

REQUIRED DOCUMENTS FOR NEW CAR LOAN (SALARIED)

· PAN CARD
· AADHAR CARD
· ADDRESS PROOF
· 3 MONTH SALARY SLIP
· LAST 6 MONTH BANK STATEMENT
· 2 YEARS FORM 16
· OFFICE ID CARD
· PHOTO
· QUOTATION OF CAR

REQUIRED DOCUMENTS FOR NEW CAR LOAN (SELF EMPLOYED)

· PAN CARD
· AADHAR CARD
· ADDRESS PROOF
· 3 YEAR ITR WITH FINANCIAL
· LAST 1 YEARS BANK STATEMENT OF ALL ACCOUNT
· GST REGISTRATION
· OWNERSHIP PROOF REQ

 · PHOTO
QUOTATION OF CAR

REQUIRED DOCUMENTS FOR USED CAR LOAN (SALARIED)

· PAN CARD
· AADHAR CARD
· ADDRESS PROOF
· 3 MONTH SALARY SLIP
· LAST 6 MONTH BANK STATEMENT
· 2 YEARS FORM 16
· OFFICE ID CARD
· PHOTO
· RC INSURANCE OF CAR

REQUIRED DOCUMENTS FOR USED CAR LOAN (SELF EMPLOYED)

· PAN CARD
· AADHAR CARD
· ADDRESS PROOF
· 3 YEAR ITR WITH FINANCIAL
· LAST 1 YEARS BANK STATEMENT OF ALL ACCOUNT
· GST REGISTRATION
· OWNERSHIP PROOF REQ
· PHOTO
· RC, INSURANCE OF CAR

Find Loan Products We Offers

Wide Range of Products​​ We offer a big basket of more than 15 financial products that include loans,

 credit cards, and bank and trading accounts from leading banks.

Download the    MYCAPITAL application from Google play-store

Sign up and create your account. In 48 hours you can start your own business and increase your income