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Why Choose a Personal Loan to Buy a Car?

December 18, 2023 • 318 views

A Personal Loan for buying a car is a popular choice amongst many car buyers. Why? Because car loans have end-usage restrictions, but a Personal Loan could help you cover additional expenses. But should you get a Personal Loan to buy a car? What are the eligibility criteria and documents required? This blog answers all your questions and brings you closer to fulfilling your dream of owning a car. Read on to make an informed decision. 

Why Choose a Personal Loan to Purchase a Car?

Here are the 5 benefits of getting a Personal Loan to buy a car

No End-usage Restrictions

Unlike auto loans, which are exclusively for vehicle purchases, a Personal Loan can be used for various purposes. A Personal Loan could be a better option if you want to add costly extras such as tax, insurance, and vehicle customisation.

Affordable Interests with Good Credit Score

The interest rate of your loan depends on your credit score. The interest rates are usually lower when your credit score is high, indicating your positive record of creditworthiness over the years. Generally, applicants must have a CIBIL score of at least 750 to qualify for a Personal Loan. Moreover, a higher CIBIL score will likely boost your chances of fast-tracked approvals and better terms.

Ease of Availing

Applying for a Personal Loan is relatively faster and involves fewer documents than auto loans. Simplicity makes it easier as it doesn’t take much time and effort. Poonawalla Fincorp and many other lenders have the option of online application, which makes it possible for customers to apply at home, in the office, or anywhere else.

High Loan Amount

You can avail Rs.1 Lakh to up to Rs.30 Lakh – a significant loan amount you can use to buy a car of your choice. Calculate the total cost before applying for a Personal Loan to buy a car.

Flexible Repayment Tenure

A Personal Loan from a trusted lender like Poonawalla Fincorp provides the option of repaying the loan conveniently through flexible EMI options. You can easily repay the Personal Loan over a few months without having to pay for your car in one go. 

Also Read - 8 Reasons Why You Should Invest in a Used Car

Eligibility Criteria for a Personal Loan

Applying for and getting approval for a Personal Loan is easy with Poonawalla Fincorp. In contrast to lengthy eligibility checklists, Poonawalla Fincorp deals with five main criteria that make it easy to pass in the approval process and quick to withdraw the funds.

Personal Loan Requirements

Eligibility Criteria

Age

Applicants should be between 22 and 57 years old at the time of the loan application.

Citizenship

The applicant must be an Indian citizen.

Employment

Applicants must hold a full-time position at reputed Government agencies, PSU, MNC, Listed or Unlisted Public Ltd, Pvt Ltd, LLP, or companies listed internally.

Work Experience

A minimum of 1 year of work experience.

 

Documents Required

While applying for a Personal Loan, you need to submit the following documents:

Document Category

Documents Required for Personal Loan

KYC Documents

Aadhaar/PAN Card

Current Address Proof

Passport/utility bills/rent agreements

Income Documents

Latest salary slips

Financial Documents

Bank Statement for the last three months

Employment Proof

Official mail ID confirmation/Employee ID Card

 

How to Apply for a Personal Loan for a Car?

Getting a personal loan from Poonawalla Fincorp is simple. Here’s how you can apply for a loan online

Step 1: Click the ‘Apply Now’ button

Go to the Poonawalla Fincorp website and click on ‘Apply Now’.

Step 2: Fill in the required details

Fill out the loan form.

Step 3: Upload the necessary documents

Upload your supporting documents for quick authentication of your registration.

After verification and approval, the amount will be deposited in your bank account.

Which Loan is Best for Buying a Used Car?

If buying a second-hand car is on your mind, you can opt for a Pre-owned Car Loan from Poonawalla Fincorp. The documents required and eligibility criteria are minimal, and you can get up to Rs. 75 Lakh to bring your dream car home.

Also Read - Loan For Second Hand Cars: Here's How You Can Get it Easily

To Conclude

Taking a Personal Loan to buy a car has many benefits. From high loan amounts to flexible EMIs and no usage restrictions – a Personal Loan could be a good option for smart buyers. You must also consider getting a Pre-owned Car Loan if you plan to buy a used car. With Poonawalla Fincorp as your trusted loan partner, you can easily turn your dream of owning a car into a reality.

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Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

We are a team of expert writers and editors passionate about providing our readers with authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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