Used Car Loan

Used Car Loan

A good used car can be bought with car instalments. Used car loans are available at attractive rates and repayment terms of up to 7 years. Some lenders offer loans up to 100% of the car’s value. Most banks and NBFCs offer used car loans. Self-employed employees can apply for used car loans.

Used car Loans – features and advantages

The primary advantages and functions of a used car mortgage are stated below:

  • The loan amount that is being availed may be much less whilst in comparison to a brand new automobile loan. Consequently, your month-to-month EMIs may be low.
  • Long compensation tenure.
  • Up to 100% financing is furnished with the aid of certain banks and NBFCs.
  • The process to apply for a mortgage is easy and may be completed online.
  • The insurance expenses and depreciation fees are decreased when compared to a new automobile.
  • Minimum paperwork desires to be submitted.
  • Positive banks and NBFCs provide bendy repayment phrases.

Things to keep in mind even when making use of a Used vehicle loan.

Given below are some of the vital points that must be taken into consideration whilst availing of a used vehicle loan:

  • The interest rates for a used automobile mortgage are better when compared to a brand new automobile loan.
  • Positive NBFCs and banks do not offer a loan if the automobile is extra than three years old.
  • The insurance cost will now not be blanketed in the loan amount.

Eligibility Criteria

The eligibility criteria that employees and self-employed people must meet vary and are listed below.

Employees

  • Age limit: 21-65 years old
  • Income: Minimum 15,000 rupees per month
  • Income status: At least 1 year at work in the current organisation

Documents Required

The listing of files that must be submitted whilst applying for a used vehicle loan is noted beneath:

  • Utility form
  • Passport-size pix
  • Vehicle valuation record

Identification proof: Any of the beneath-cited documents can be submitted as proof of identification:

  • Aadhaar Card
  • Passport
  • Riding Licence
  • Voter’s id
  • PAN Card

Address evidence: Any of the underneath-stated files can be submitted as proof of address:

  • Voter’s identity
  • LIC policy
  • Strength invoice
  • Aadhaar Card
  • Riding Licence
  • Ration Card
  • Passport

Earnings proof: The below-cited files must be submitted as evidence of earnings:

  • Earnings and loss account
  • Stability sheet
  • Audit sheet
  • Form sixteen
  • Revenue slip
  • Bank statements

A way to follow for a Used vehicle mortgage Offline

  • Go to the bank department or NBFC workplace wherein you would love to avail a loan.
  • Fill out the application form.
  • Post the necessary documents to check if you are eligible for the mortgage.
  • Talk about the hobby charges, processing price, and so on., with the lender to man the loan.

Tips to Streamline the Loan Application

  • Process Thoroughly research online to find a lender that offers used car loans at low-interest rates and the right term. Various banks and NBFCs offer used car loans at attractive rates. 
  • Select the online application process. This will help you save time.
  • You can check your monthly payments using the EMI car loan calculator provided by BankBazaar. The calculator is easy to use and requires you to enter basic data such as the period of use, loan amount,  commission, and interest rate.
  • Prepare the relevant documents. Delays in submitting documents will increase loan processing time.
  • Choose a well-known lender to expedite the loan process.

Crucial activities whilst buying a Used Vehicle

Some of the critical matters which you should do whilst you purchase a used automobile are referred to underneath:

  • Vehicle Inspection: Thoroughly inspect the vehicle. You can check your car with the help of a mechanic. If there is a problem with the car, we can negotiate the price. Drive the vehicle in a low-traffic area to check for vibration.
  • Check your documents carefully: It is very important to check your insurance documents and registration certificates carefully. Make sure your car’s engine number and chassis number match the copy. It is also important to determine if the vehicle has been in an accident.
  • Automobile history: Before buying a car, it is very important to check the history of the car. You can find a wide variety of auto parts online. Checking your vehicle’s history will help determine if your vehicle has had an accident or had any maintenance issues.
  • Transfer of registration certificate: After purchasing the vehicle, check that the registration (RC) has been transferred in your name. A NOC is required if the vehicle is registered in another state. A NOC is also required if the car was purchased on credit by a previous owner.
  • Insurance Transfer: Your auto insurance policy must be transferred in your name immediately. Insurance policies in the previous owner’s name are not valid even if the RC is in your name.
  • Vehicle Maintenance: It is important to have the vehicle serviced before using it. If rust appears, it must be repaired. Change the liquid and clean the vehicle before first use.

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