A second-hand car or pre-owned car is one of the undisturbed markets
– both post and pre-COVID times. Due to the hassle-free process of second hand car loan, the market has
seen significant growth. Another major factor that influenced people
to shift towards second hand car is due to constant rise in the prices
of new cars. Also, people prefer second hand car loan over new car
loans due to low EMI and to avoid heavy down payment amounts.
Looking for second hand car loan, here’s how you can get it easily:
1. Knowing your car history
Prior
to finalizing the second-hand car, you must properly inspect the car
and the entire history of the car. For instance, if there is any
change or replacement of any part, any accidental damage, or any
repair work has been done on the car. Knowing the history will help
to take the final decision.
2. Selecting a lender
Your lender
is from who you decide to take a loan while buying a second-hand
car. A second-hand car loan has various factors involved in it
which dictates the loan amount and EMI that you have to pay at
regular interval of time. A second hand car loan amount is decided
on the basis of the model of the car, number of years the car is
being used, condition of the car, and number of previous owners.
Once you select your lender depending on your requirements and
budget. The next step is deciding on your EMIs and finances.
3. Deciding finance
Once you
decide on your car model and lender, the next important thing is
deciding the finance – down payment amount, rate of interest, and
monthly installment. A hard check is done when you apply for any
kind of loan or credit with the lenders. The lenders usually check
your entire credit report which includes your CIBIL or credit score.
Your credit history and CIBIL or credit score is one of
the major deciding factors at the time of loan approval. If these
factors are as per the requirement, you will get your desired loan
with a relatively lower interest rate. However, if you have a poor
credit score and report, there are chances that your loan application
might get rejected. In other cases, you might get a loan or credit
with a high-interest rate.
4. Insurance Transfer
Insurance is
one of the primary documents that a previous owner of the car must
have. Insurance covers all the damages and unforeseen events that
might occur. At the time of applying for a second hand loan, you
must also check whether the owner has insurance for the car. In case
he does have insurance, you must transfer the insurance to your
name. Also, while transferring the insurance in your name, you must
also check the date of insurance, date of expiry, terms, and
conditions of the insurance, and other factors related to the insurance.
5. Submitting the documents
Documentation is vital in any process – you should have all the
required documents at the time of applying for second-hand
car loan. This helps in easy and quick loan approval. You must
check car valuation report along with the documents mentioned
below:
As identity proof, you need to submit either an Aadhaar
card, passport, PAN Card, Voter’s ID, or driving license. The next set
of documents that is required is your address proof which includes
Voter’s ID, Passport, Driving license, LIC policy, Electricity bill,
or Ration card. The last set of documents that a self-employed person
must have is a bank statement, profit and loss account, form 16,
balance sheet, and audit sheet. In case you are a salaried individual,
you must have a salary slip, bank statement, and form 16 as a part of
income proof documents.
How to get a second-hand car loan?
With Poonawalla Fincorp, it is one of the easiest to apply for
second-hand car loan. You need to follow a few simple steps:
1.
Visit our official website at poonawallafincorp.com
2. Click
on the other loan section on the home page
3. Under the
Pre-owned car loan section, click on apply now
4. Carefully
fill out the form and upload all the necessary documents
5.
Wait for the verification and assessment done by our team of
experts
6. After verification, your loan will be approved and
disbursed in no time.
To conclude
Poonawalla Fincorp is one of the best option available when it comes to second hand car loan. You can apply online for second hand car loan by following the above mentioned steps. We are happy you to assist with your dream car with our Pre-owned car loan.
