Used Car Loan
Loan
Used Car
A used car loan is a variable of car loan. It’s a type of secured loan where the loan borrower has to keep his/her car as collateral to bank/NBFC against the loan. By taking this loan one can buy an expensive car easily. The price of a second-hand car is always low compared to its price when it was bought as a new car. By taking a used car loan one can buy an expensive luxurious car at lower rates.
Eligibility Criteria to avail a Used Car Loan
Banks & NBFCs have divided eligibility criteria on applicant’s professions but there are some general criteria too which applies to everyone. These criteria differ from loan lender to lender. These involve various factors like as income, employment status, loan tenure etc. Banks & NBFCs have divided eligibility criteria on applicant’s profession but there are some general criteria too which applies to everyone.
These are the generic eligibility criteria to avail a used car loan:
- You have to be an Indian citizen
- Your age should be between 21 years minimum and maximum 60 years
- You should have a good savings history along with professional stability
Banks & NBFCs divide their applicants into two categories to determine the eligibility criteria: Salaried Applicant and Professional Applicant/ Self-Employed Applicant.
- Salaried Applicant
This category includes regular salaried employees of private limited companies, public sector, government employees etc.
The applicants should be doing a job for minimum of 2 years and should be with the current employer for a minimum 1 year.
The applicant should have a minimum earning of Rs. 2,50,000 p.a. (including spouse as co-applicant).
- Professional Applicant/ Self-Employed Applicant
This category includes professionals like doctors, engineers, architects, chartered accountants, traders, commission agents, contractors, etc.
The applicants should have been in business or the current profession for at least 2 years.
The applicant should have a minimum earning of Rs. 2,50,000 p.a.
The applicant should be paying Income Tax Returns regularly.
Documents Required to get a Used Car Loan
When you apply for a loan against property, the Bank will evaluate your property and accordingly will provide you with a certain percentage of the property amount. This percentage will usually hover between 50-75%*. The Bank will give you these funds in advance so you can utilize the loan amount and sort all your problems. But please remember that this money that has been given to you will be repayable with interest. You can re-pay this loan amount through monthly EMIs (Equated Monthly Installments).
DOCUMENTS REQUIRED​
The list of documents for availing of a used car loan changes whether you’re a salaried applicant or a self-employed professional/ businessman. The process of getting a used car loan in Mumbai can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria of the loan borrower. The list of required documents differs from loan lender to lender. But we have given a generic list of required documents below:
The list of required documents differs from bank to bank. But we have given a generic list of required documents below:
- Neatly signed and filled used car loan application form
- Passport-size photographs
- Identity and signature proof – Passport, Pan Card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees
- Address Proof – Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax
- Age Proof – A voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order, or receipt of LIC policy
- Salary slips of last 3 months from application date
- Form-16 issued by current employer
- Bank statements of last 6 months from application date
- Copy of details of all existing loans
- A cheque covering the administrative costs/processing fees incurred by the bank in processing the application
- Business proof (registration of business).
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