Owning a car is more than a luxury. In a busy life, owning a car has more utilities than you can think of. Buying a second-hand car can be a great pick if you want to own a car immediately at a reasonable cost. A second-hand car can be easily financed using a used car loan. Financial institutions provide used car finance schemes at attractive interest rates, and the tenure of repayment can also be extended up to seven years.
Almost all financial institutions provide a great range of schemes for used car finance and two-wheeler finance. Self-employed as well as salaried individuals can avail of a used car loan. In this article, we will discuss in detail the different aspects of used car finance.
Used Car Finance — A Quick Guide
Let us glance at the benefits and features of availing of a used car loan.
- The amount of loan is less than that of a new car, and hence, the EMI to be paid is also low.
- The tenure of repayment is high
- Up to 100% financing available
- The process requires minimal documentation and can be completed online
- Lower insurance costs and depreciation rates for a used car
- Flexible repayment terms
What to keep in mind while seeking Used Car Finance?
Eligibility Criteria
There is a slight difference in the eligibility criteria for salaried employees compared to that of self-employed customers.
Salaried Employees
- Age Limit: 21-65 years
- Income: Minimum salary of INR 15,000 pm
- Income Status: Must be currently employed with an organization for at least a year
Self-employed Individuals
- Age Limit: 25-65 years
- Income: Minimum profit generated in a year should be at least Rs.1.5 lakh
- Income Status: Should have been operating in the same line of business for at least three years
Documents Required
- Passport-size photographs
- Car valuation report
- Identification Proof issued by the Government of India (Any one of the documents mentioned below)
- Aadhaar Card
- Passport
- Driving License
- Voter’s ID
- PAN Card
- Proof of Address: Any one of the documents mentioned below
- Voter’s ID
- LIC Policy
- Electricity Bill
- Aadhaar Card
- Driving License
- Ration Card
- Passport
- Proof of Income: The documents, as applicable, mentioned below have to be submitted
- Profit and loss account
- Balance sheet
- Audit sheet
- Form 16
- Salary slip
- Bank statements
Steps to Apply for a Used Car Loan
You can apply for a used car loan online as well as offline mode. The online application mode has become one of the most preferred options to apply for two-wheeler finance or an auto loan. Let us check out the steps to be followed to apply through both offline and online mode.
Offline Mode of Application
- Visit the nearest branch of the financial institution of your preference
- A customer care executive will help you in filling up the application form
- Submit the filled form along with the necessary documents
- Make sure to discuss the rate of interest, tenure of repayment, and the processing charges in detail before submitting the forms
- The financial institution will reach out to you with the final offer based on the documents submitted by you
Online Mode of Application
- Visit the official website of the financial institution.
- Click on the “Apply Now” button
- The user interface will guide you through the application form
- Submit the documents in the required format
- Get the detailed report on the offered rate of interest and tenure of repayment
How to Make the Application Process Easier?
- Do some research on your end before filling up the form. It will improve your understanding of the used car finance schemes available in the market.
- Apply through an online application as it will save a lot of time.
- Use an online EMI calculator to assess the different EMI options.
- Keep the documents in order. It will expedite the entire process.
- Choose a trusted financial institution like Muthoot FinCorp.
Conclusion
Whether it is used car finance or two-wheeler finance, the points mentioned above will help you streamline the entire application process. The processing of loans has become fast over the years, and if all the documents are found in order, then your loan can get approved in a matter of days.