A Complete Guide on Used Car Loan in India - Apply Online

Buying a car is everyone’s dream! But after the covid-19 pandemic, the situation hit livelihood & resulted in a shortage of funds- slowly people started looking  for affordable things one such is used car an alternative way to fulfill their dream. More than 90 percent of people look for bank finance. 

Several banks & NBFCs offers used car loan at competitive interest rates. Lenders funds up to 100% of the car value, used car loan interest rate begins 9.90% Onwards. However, based on income, age, type of car & credit score are the factor that influences rates & determined by the lender. 

Key features: 

• The Interest rate on a second-hand loan is lower than new car loans.
• The Lender provides loans up to 100% of car value
• Only minimum documents required by a lender
• Flexible repayment tenure up to 84 months
• Some lenders offer loans up to 85% of car value without asking income document

Used Car Loan Interest Rate by Top Banks 

 Used Car Loan EMI Calculator 

Get a clear estimate of payable EMIs on loans with the use of a personalized used car loan EMI calculator. By doing so, you will be easily able to know whether you can afford the amount to pay on regular basis within your framed budget & plan your finances accordingly. 

The EMI calculator is an automation tool; hence no mathematical formula needs to calculate. It requires a few inputs from your side to calculate the value along with giving a detailed amortization schedule for loans on a month-to-month basis. 

These inputs include: - 

1. Required loan amount
2. Payable Interest rate
3. Loan tenure to repay the loan

Also Read:-  Loan EMI Calculator Online

Check your Used Car Loan Eligibility 

Whether you are a salaried or self-employed individual, you must meet the criteria set by the lenders. A credit score is an important factor in determining applicant eligibility. Check your credit report before you apply. Usually, bank to bank requirements shall differ but some of the common eligibility are given below: -  

Document required 

Below is the list of documents required that must be submitted while applying for a used car loan. 

Identity Proof- Adhaar Card/Voter ID/Passport/Driving License 

Residential Proof- Electricity Bill/Ration Card/Bank Statement/Property Tax Receipt/Copy of Utility Bill 

Income Proof: - Copy of past 6 months Bank Statement, copy of salary Slips for last 6 months, Copy of ITR with computation, Profit & Loss Statement & Audited Balance Sheet 

Other Mandatory Documents: - Copy of Registration Certificate (RC), No objection certificate (NOC), pollution under control certificate (PUC) & other Insurance papers of the vehicle. 

How to Apply for a Used Car Loan? 

Step 1: - Visit Financeseva to Compare & choose the offer that suits your requirements. 

Step 2: - Simply click on the get quote straight to your preferred lender. Enter the basic details & submit the same. 

Step 3: - Within 24 hours representative will be contacting you to explain product features & rates. Only with your final confirmation application will be processed ahead. 

Things to consider while applying for a Used Car Loan 

Some important points need to be considered while applying for used car loans as given below: - 

Try to pay a higher down payment: - When you approach a lender for a second-hand car loan, they will provide a loan of 70% –95% of car value which means the remaining amount shall be paid by borrowers. A higher down payment allows you to save money on EMIs. 

Keep all required documents handy: - Make sure you keep all required documents in handy before you apply for a car loan. A complete set of documents will help you to get a loan easier. These documents are registration certificate (RC), no objection certificate (NOC), pollution under control certificate (PUC) & other Insurance papers of the vehicle. 

Compare Interest rate: - Once you finalize the car parallelly you will start looking for finance, there will be a lot of financing options available for used cars. Multiple banks & NBFCs offers loan for used cars, all you need do is compare interest rate before the loan approach to get lower rates.