Financing the purchase of a used car has become comparatively easier, thanks to digital loan process. Features such as low EMIs, flexible tenure, minimal documentation, etc., have also made availing of a Pre-owned Car Loan accessible and affordable. This blog discusses the steps to get a used car in India, how to apply for a used car loan and other details. Read on!
Steps to Get a Used Car in India: The Entire Process
Here are the steps to get a second-hand car in India:
• Step 1: Begin your search for a used car by
exploring various dealerships and online platforms. Shortlist the cars
that align with your preferences and budget.
• Step
2: Physically inspect the car, and if possible, get a
mechanic's opinion to assess its condition thoroughly. Ensure that all
the papers, such as RC, insurance, and service history, are up to
date.
• Step 3: Gather essential documents such
as proof of identity, address proof, income proof, bank statements,
and employment details.
Once all the premilinary checks are done, you can apply for a used car loan.
How to apply for a Pre-owned Car Loan?
You can apply for a Pre-owned Car Loan by following these three
simple steps:
• Step 1: Click on the ‘Apply
Now’ button.
• Step 2: Fill in the required
details on the loan application form.
• Step
3: Upload necessary documents.
On successful verification, the loan amount will be credited to your bank account instantly. But before you apply, you must estimate the loan amount you require. Scroll down to the next section to know how to calculate the loan amount you should borrow.
Also Read - Leasing vs Buying a Used Car – Which is Better?
How Much Should You Borrow?
It is essential to assess your financial readiness first. Evaluate your income, expenses, and outstanding debts to determine how much loan you can avail of. Most financial institutions generally offer loan up to 60% to 85% of the car's valuation, and the remaining amount needs to be managed through a down payment. With lenders like Poonawalla Fincorp, you can avail yourself of loan amount of up to 100% of your car’s valuation.
How to Research Various Second-Hand Car Loan Providers?
To make an informed decision, researching different second-hand
car loan providers is essential. Start by comparing the
following:
• Interest Rates: Interest
rates for a used car loan can vary considerably. Choose a lender
providing the lowest rates for your loan.
• Eligibility
Criteria: Check the eligibility criteria, including the
minimum credit score and income requirements, before opting for the
loan.
• Additional Charges: Other than
interest, processing charges and additional fees like documentation
charges, valuation charges, etc., may apply.
• Repayment
Tenure: Check the ranges of tenure offered by the lender. A
shorter tenure keeps your overall expenses low.
• Documents Required:You must check the basic
documents required, including identification proof, address proof,
income proof and other documents.
Sift through multiple options available in the market and choose a provider that suits your financial requirements.
To Conclude
Understanding the Used Car Loan process empowers you to make an informed decision when financing a used car in India. By assessing your financial readiness, researching different lenders, and following a systematic approach, you can enjoy a hassle-free experience throughout the loan process with Poonawalla Fincorp. Poonawalla Fincorp’s Pre-Owned Car Loan is offered to you at attractive interest rates where you can enjoy various benefits such as flexible repayment, minimal documentations, higher loan amount, etc.
Also Read - How to Get a Loan for a Used Car When Buying from a Private Seller?
Frequently Asked Questions
1. What is the interest rate on a second-hand car loan
in India?
The interest rates
on second-hand car loans in India generally range between 12%
and 16% p.a., depending on the lender, loan amount, and tenure chosen.
But if you decide to avail yourself of a Pre-owned Car Loan from
Poonawalla Fincorp, the interest rate starts at 11% p.a.
2. Can I apply for a Used Car Loan without a credit
history?
No, having a credit history and a CIBIL score
above 750 is mandatory to avail of a Used Car Loan.
3. Can I prepay my Used Car Loan?
Yes,
prepayment of a used car Loan, either partially or in full, is
allowed. However, prepayment terms and charges must be considered.
It's essential to review the loan agreement and discuss prepayment
options beforehand.
