Car loan is one of the popular types of loan in the Indian market. With factors such as rise in income and affordable car loans, the Indian car market has seen a significant growth in car demand.
Also, there is strong rise in the car loan providers such as several banks and Non-banking Financial Companies (NBFCs) providing car loan and used car loan with competitive interest. Aftermath, there is prominent inclination in the car loan applicants. However, with numerous car loan providers and diverse offerings, there is a confusion amongst the applicants about various aspects such as rate of interest, tenure, type of car available for loan, documentation, loan amount, down payment etc. So, how much time can it take to process a car loan? Can it be faster?
In the time where everything is digitalized, the process of applying for loan and loan approval is online now. One such example is Poonawalla Fincorp, it offers the best financial assistance possible at competitive interest rates. Used Car Loan is one of the popular loans amongst individuals who are wishing to buy a car.
Prior to applying a car loan, you must keep these following things in mind to make the loan process faster.
1. Application and Eligibility
Before applying for car loan, you should understand the how to apply for the car loan and the eligibility criteria for the loan.
You can apply for Pre-owned Car Loan with Poonawalla Fincorp by following the below effortless steps:
Step 1: Visit the official website of Poonawalla Fincorp
Step 2: Click on the other loan section, and you will find Pre-owned Car Loan section
Step 3: Click on ‘Apply Now’ under Pre-owned Car Loan section
Step 4: Upload the required documents and fill out the form
Step 5: After verification of the details, your loan will be approved
For applying for Pre-owned Car Loan
• Salaried Individual
Age: The age limit for a salaried individual is between 25 years at the time of loan application to maximum of 65 years at the time of loan maturity
Income: Minimum income should be Rs. 25,000
Experience: Total experience of 1 year and he should be for at least 2 months with current employer.
• Self Employed Individual
Age: The age limit for a self-employed individual is between 25 years at the time of loan application to maximum of 65 years at the time of loan maturity
Income: Minimum requirement for self-employed individual is Rs. 3 Lakh gross annual income
Experience: He/she should be in the same business for at least 3 years.
Age: The age limit for a proprietor/partner/director should be between 25 years at the time of loan application to maximum of 65 years at the time of loan maturity
Income: For firm/company the annual turnover should be minimum Rs. 10 Lakh.
Experience: The firm/company should have stable same business of at least 3 years.
You can check your eligibility criteria list on the Poonawalla Fincorp Website. This will ensure that you have all the things required before proceeding for the used car loan.
2. Credit Check
When you apply for any kind of loan, a lender checks your credit score or CIBIL score. This is done to check your creditworthiness.
You can easily check your CIBIL score at any time on CIBIL’s official website.
Step 1. Visit CIBIL’s official website www.cibil.com
Step 2. Enter the required information in “Get your CIBIL score” section.
Step 3. Provide the supporting documents and confirm your details.
Step 4. Once you receive your OTP on your registered mobile number, you can check your credit score at Myscore.cibil.com
To avoid any delays or slowing of loan approval, you must ensure that you must submit all the mentioned documents below:
• Income Proof
• Residencial Proof
• Identity Proof
• Bank Statement
• Required car documents
• Incorrect documentation: If there is any incorrect documentation or incomplete documents, it will create delay and confusion amongst the lenders. At the time of verification and documentation check, the lender will cross check every possible detail that is required for creditworthiness. For example, if you don’t submit proof of income or resistance or in case there is any incorrect information or errors, the lender will hold up your loan application which will result in delay in the loan approval.
• Timing: There are times when you might be unaware about the timing when you apply for a loan. In case you apply at the end of the day or before any public holiday or bank or lender holiday, your loan application will be proceeded further in the next working day. To avoid any delay or slowing down of your application, you should ensure that you apply on working days.
• Inadequate information about the vehicle: There are certain lenders who have different criteria for a used car i.e., mileage for limitation, car model and loan amount. The dealer sends the information about the car to the lender. The next step is that the lender cross verifies the information and move to further process.
• Background check or verification: Before applying for loan, you must also check all your documents and the other eligibility criteria. As when you apply for loan, the lender checks your background, and a proper verification is done to check if there is any chance of default. If they find any inconsistence, there are chances that there might be delay in the loan approval.
Gone are the days when cars used to be the symbol of luxury. A car has now become an indispensable part of the modern lifestyle, ensuring easier mobility, safety, and comfort.
Purchasing a car is a big decision that brings with it many questions, even if its a pre-owned or used car. Which car model should one buy? Which car will be ideal for the family?
The COVID-19 pandemic has entirely changed the way we commute. The fear of the coronavirus and social distancing norms have forced people to depend less on public transportation modes, including buses, autos, local trains, and taxis.