Used Car Loan
Anybody planning to buy a second-hand car or want to leverage a pre-owned car, can consider availing a used / pre-owned car loan. This is a loan which is offered by taking your car as collateral.
Used car loans is a very useful product which offers an opportunity to a motor vehicle owner to avail a loan up to 200% of the value of the vehicle subject to eligibility.
Though different financers will have their own funding norms, but most of the banks extend these loans in the range of 10-50 lacs for a period of 2- 5 years.
The processing of these loans is relatively very simple and swift with minimal documentation.
Who can avail this loan?
Any individual, salaried or self-employed who has a car or is planning to purchase a pre-owned car.
Any applicant owning a car, can avail this facility.
The mandatory documents are:
- Address Proof and Identity Proof documents
- Salary Slips for the last three months
- Bank Statements for the last six months
- RC book & Insurance
The repayment tenor for the loan ranges from 12-60 months. The age of the vehicle at the end of Loan tenor should not exceed 10 Years.
No, the car itself acts as a security here.
It takes us 24-36 hours from the completion of documentation to sanction a used car loan.
Yes, The car that you want to pledge as security, will undergo a valuation and verification process.
Any Hatchbacks and Sedans, excluding some models that are out of production, can be financed. However, funding against commercial/yellow number plate vehicles cannot be availed
The loan can be repaid through ECS, Direct debit and post-dated cheques.
You can prepay the loan, However, financier would charge prepayment penalty.
Credit report provides details on your financial status and your ability to repay a Loan. This helps us evaluate your financial history. A good credit report will help you take a loan easily.