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.
How to apply for used car loan with Poonawalla Fincorp?
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
What is the eligibility for used car loan?
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.
• Firm/Company
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.
Where to check the eligibility if the used car loan?
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.
How to check your CIBIL score online?
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
3. Documentation
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
What can slow down your car loan application?
• 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.
