Know Everything About our Used Car Loan
Have questions about our Pre-Owned Car Loan? Here are some of the most Frequently Asked Questions (FAQs) surrounding this instrument to offer you more insights.
Yes. You can purchase a Pre-owned Car Loan offered by Poonawalla Fincorp, which is specially designed to help you buy a second-hand car at an affordable and cost-effective terms.
Yes. You can avail of a loan for used car online through our website. All you must do is meet the simple eligibility criteria, fill out an easy online application form for a Pre-owned Car Loan, and await loan approval. In just a few quick steps, you can get the funds needed to purchase the used car of your choice.
The main benefit of online Pre-owned Car Loan is that it is a completely hassle-free process. We have optimised the experience to be completely effortless and intuitive. With a strong profile, you can get funding in no time.
To ensure you don’t miss out on any of the benefits on a used car loan, follow these simple tips:
Yes. It is possible to use a Personal Loan to buy a car, but it is usually the costlier option. For a used car, our Pre-Owned Car Loan is a better choice due to the competitive interest rates we offer.
With the Poonawalla Fincorp Pre-Owned Car Loan, you can avail yourself of up to ₹75 Lakh to get the car of your choice. Do note that the final approved sanction amount will completely depend on your financial and credit profile along with the LTV (Loan to Value) provided to you on the value of your car.
Our loans are offered at a competitive and cost-effective interest rate for Pre-owned Car Loan starting at just 11%* p.a.
Find the full list of the Pre-Owned Car Loan fees and charges on our website. You can also inquire about the same by contacting our support team.
We charge 0% fee if paid from your own sources and a nominal 4% fee if paid from other sources, on the outstanding principal, plus additional taxes as applicable on foreclosures, after you have completed 6 months of your loan tenure.
We offer several perks to our borrowers. The loan has a fully digital application procedure, and the entire process can be completed with minimal effort.
There are several advantages of buying a used car. The following are the key advantages of buying a used car:
- Lower Cost: Used cars are generally cheaper than new cars, which makes them more affordable for people on a budget.
- Lower Insurance Premiums: Insurance premiums for used cars are generally lower than those for new cars because used cars have a lower value.
- Less Depreciation: New cars lose a significant amount of their value in the first few years but used cars have already experienced this initial depreciation. This means that if you sell your used car in a few years, you may not lose as much money as you would with a new car.
- Reduced Registration Fees: Registration fees for used cars are generally lower than those for new cars because the fee is based on the car's value.
- Lower Loan Payments: If you need to finance your car purchase, your monthly loan payments will be lower for a used car than for a new car.
Before o opting for a Pre-owned Car Loan, here are some things you should check to ensure that you get the best deal possible:
- Check Your Credit Score: Your credit score will determine the interest rate and the amount of loan you can get. So, before you opt for used car finance, check your credit score and make sure it is 750 and above.
- Loan Eligibility: Check your eligibility criteria for the loan, including your income, age, work experience/business vintage, and credit score.
- Car Condition/History: Before you buy a Second-Hand Car Loan, inspect the car's condition, age, and mileage to determine its value. Also, check the car's history to ensure it's not stolen, has no outstanding loans, and has not been in any major accidents.
- Compare Loan Options: When buying Second-Hand Car online, compare loan options from different financial institutions to find the best interest rate and loan terms.
- Additional Charges: Check for any additional charges like processing fees, prepayment charges, foreclosure charges, etc., that may be associated with the loan
You can use these tips for buying a Used Car as they help you to make a well-informed decision.
We have kept our Pre-owned Car Loan eligibility for self-employed very simple so that a maximum number of people can benefit from our loan. To be eligible for a Pre-Owned Car Loan, self-employed individuals just need to meet the following Used Car Loan eligibility criteria:
- Age: The applicant should be between 24 and 60 years of age.
- Citizenship: Directors/Partners/Proprietors must have Indian citizenship.
- The applicant with an annual income of up to ₹10 Lakh must have a business vintage of at least 24 months.
- The applicant with an annual income of ₹10 Lakh – ₹ 75 Lakh must have a business vintage of at least 60 months.
Please note that the above-mentioned Pre-owned Car Loan eligibility requirement is indicative. We may require additional information at the time of loan processing.
The Pre-Owned Car Loan eligibility for salaried individuals is as follows:
- Age: The applicant should be between 24 and 60 years of age.
- Citizenship: The applicant must be a citizen of India.
- Employment: The applicant should be employed with a reputed company.
- Credit Score: The applicant should have a good credit score of 750 or above.
- Work Experience:
- The applicant with an annual income of up to ₹10 Lakh should have a stable job history of 1 year and should be employed with the current employer for at least 3 months. The applicant with an annual income of ₹10 Lakh – ₹ 75 Lakh should have a stable job history of 2 years and should be employed with the current employer for at least 6 months.
These are some of the basic Used Car Loan eligibility criteria for salaried individuals.
The minimum CIBIL score for a car loan may vary depending on various factors such as the loan amount, tenure, and other eligibility criteria. In general, 750 is the minimum CIBIL score for a Pre-owned Car Loan approval. A CIBIL score of 750 and above is generally considered to be a good score. It improves the chances of getting approved for a Used Car Loan and can also help you negotiate better loan terms and interest rates. Additionally, a good credit score reflects your creditworthiness and responsible credit behaviour, which can positively impact your future loan applications as well. Make sure, you maintain a good credit score before you apply for a Used Car Loan to avail of a loan at attractive terms.
Yes, you can Pre-pay the entire loan amount when you opt for our Pre-owned Car Loan. However, if you are planning for pre-closure of your loan then it is necessary to go through the terms as we charge 0% fee if paid from your own sources and a nominal 4% fee if paid from other sources, on the outstanding principal, plus additional taxes as applicable on foreclosures, after you have completed 6 months of your loan tenure.
No, you can’t get a Used Car Loan without income proof as we require income documents to verify your ability to repay the loan. We want to ensure that the borrower has a stable income and will be able to repay the loan on time. Therefore, it is necessary to submit income documents as a proof while applying for a loan.
To apply for a Poonawalla Fincorp’s Pre-owned Car Loan, the following income documents are required:
- Salaried Individuals: Latest salary slips
- Self-employed Individuals: Income Tax Returns for the past 2 years, GST Returns, Profit/Loss statement and Balance Sheet for the past 2 years.
- Firm/Company: Income Tax Returns along with the computation for the past 2 years, Profit/Loss statement, and Balance Sheet for the past 2 years, and GST returns.
Poonawalla Fincorp’s Used Car Loan approval process is very smooth and fast, which means that borrowers can get quick Pre-owned Car Loan approval within minutes of applying for the loan. However, the disbursal of the loan amount may take a few hours to a few days, depending on the documentation and verification process.
Once the borrower submits the loan application and the necessary documents, Poonawalla Fincorp verifies the information provided and checks the borrower's creditworthiness. If the borrower meets the eligibility criteria and completes the loan application, he/she will get the online Used Car Loan approval instantly. After the loan is approved, the borrower can expect the loan amount to be disbursed shortly.
Also, do note that if the borrower has a good credit score and a strong financial profile, for a fast approval process. On the other hand, if the borrower has a low credit score or there are any issues with the loan application, the approval process may take longer. So, it’s always a good idea to maintain a good credit score before applying for a Pre-Owned Car Loan.
The maximum tenure of a Used Car Loan can vary depending on the borrower's creditworthiness, loan amount, and the age of the car. In general, Poonawalla Fincorp offers a maximum tenure for a Used Car Loan up to 72 months.
It's important to note that the Used Car Loan tenure is one of the most important factors that influence your EMI. If you go for the maximum tenure of a Pre-owned Car Loan, your monthly EMI will be low. And, if you choose a shorter loan tenure, you will have to pay a larger EMI. Hence, a longer tenure will help you lower the EMI cost, but it will increase the total interest paid over the life of the loan.
Therefore, it is important to carefully consider the loan tenure and calculate the total cost of the loan before making a final decision.
*Terms & Conditions Apply