It can be difficult to find a used car loan. . Going with the second-hand option could empower you to purchase the car of your dreams without having to go over your finances if your dream vehicle is out of your price range. Additionally, purchasing a second-hand car on EMI will assist you in better managing your finance. To get a second-hand car, you should first determine your budget, and pre-owned car loan eligibility criteria choose the suitable amount of loan as per your lifestyle and then ask questions about the car’s former condition, and legal documentation.
Second-hand car on EMI
Any reputable financial institution will accept your application for a used automobile loan, whether you submit it online or in person. Here’s how:
Online Second-Hand Car Loan Process
- Visit the website of your desired loan institution.
- Click the “Apply” tab on the page for the used auto loan.
- Enter your information and attach a digital copy of your Documentation and income proof.
- The lending institution will offer you a customized offer after verification.
- The used automobile loan will be transferred to the seller’s account once you accept the deal.
Procedure for an offline second-hand car loan
- Visit the location of your lending institution’s nearest branch.
- Complete the application.
- Send in photocopies of all the necessary documentation.
- The representative of the financial institution will verify your eligibility after submission.
- Before you accept the offer, make sure to go through the rate of interest and the loan conditions.
- As soon as you take the offer, the funds will be released.
Pre-owned car loan eligibility criteria
You must fulfill the lenders’ age, employment history, and income limits as they favor applicants with lower debt-to-income ratios.
- You must provide evidence showing that you are an Indian citizen above the age of 18 with a stable source of income.
- If you are a salaried employee, you should have worked at your current position for at least six months.
- If you are an independent contractor, your business should be registered and at least a year old.
- Solid credit history is also essential.
Documents required to get second-hand cars on EMI
- Keep a set of passport-size photos in hand.
- Be prepared with your Aadhar, PAN card, proof of address, age proof, car valuation reports, registry papers, insurance documents, etc.
- If you run your own business, you must present your business’s balance sheets, registration documents, and KYC information to all of your partners and members of the board.
- If you are employed, you must provide your pay stubs and bank statements.
The value of cars on the used marketplace has improved. . The modern-day car owners desire to update every few years, thus they often only keep their brand-new vehicles for a couple of months before selling them. Furthermore, the used car regains its previous beauty after a minor touch-up by reputable car dealers. If you need a car but have little saved up, you might choose to get a second-hand car on EMI, now is the time! With this kind of loan, you can determine a repayment schedule that fits your financial budget. It’s crucial to remember that making a larger down payment can lower EMIs. Additionally, EMIs will be less expensive if the loan term is dispersed over a longer period and more expensive if you prefer to pay them off faster.