Used Car Loan

Loans for used cars are offered by several establishments today. When buying a used car, it is important to check whether it is in good condition and if it has a clean history. Used car loans are a boon to buyers as these have low interest rates.

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Used cars, second-hand cars or pre-owned cars have become popular amongst consumers nowadays. This is mainly due to the establishment of several organised used car dealerships across the country. These reliable car dealerships ensure that the second-hand cars are certified and well-maintained. When purchasing a used car from a private dealer, you have to worry about whether the car is a stolen property or if it is in working condition. You can do without this sort of stress when dealing with a reputable auto dealership.

The latest avatar of an age old adage is ‘old is sold’, and the rule applies to almost all our material possessions that are deemed aged, redundant and replaceable. A used car loan helps you procure an otherwise costly item that in mint condition would cost you a lot higher than its current ‘pre-owned’ state. Thus, allowing people with lower budgets to elevate themselves to the status of car owners. Aside from being a very comfortable option to purchase a ‘new’ car, a used car loan offers a dimension of simplicity, transparency and hassle free experience that is at par, and at times significantly higher than the corresponding car loan procedure for a new automobile. Want to own a car but are not willing to spend too much into the experience? What you seek is a well-maintained, reliable and springy used car that has aged gracefully, and consequently a second hand car loan to purchase it.

How to Apply for a Used Car Loan?

On Loanqubes.com, get a comprehensive glimpse of the various features, interest rates, eligibility criteria and required documentation for a second hand car loan as offered by an assortment of banks and financial institutions across India. All the information you want, in one complete package.

  • Calculate the applicable EMI and other essential loan details by using a variety of financial tools provided on the website.
  • A comprehensive listing of loaning banks- choose the one that meets your specific expectations.
  • Instant online loan application, followed by immediate approval based on the submitted information.
  • Robust customer support division to help you with concerns and queries.

Eligibility Criteria for Used Car Loans

The following list is a generalised view on the commonly expected requirements that form the basic eligibility criteria for second hand car loans. Banks, at their own discretion, may require additional proof and/or documentation to establish your eligibility for the said loan.

  • The applicant must be aged no lesser than 21 years nor be older than 65 years.
  • Must be a salaried individual, self-employed person, a proprietorship or partnership firm, a public sector undertaking, a private company, person currently employed in the agriculture sector or dependent industries.
  • In order to qualify for an old car loan, and if the applicant is a salaried individual, the net annual income of the said applicant and/or co-applicant together should not be lesser than Rs.3,00,000*.
  • If the applicant is a self-employed individual, proprietorship or partnership firm, then the net profit or total taxable income of said applicant and/or co-applicant together should not be lesser than Rs.4,00,000* per annum.
  • If the applicant is an agriculturist, the net annual income of the said applicant and/or co-applicant together should not be lesser than Rs.4,00,000* per annum.

(* Numbers may vary for different banks)

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Top Used Car Loan Providers in India

  • HDFC Bank– One of India’s premier banking organizations, the HDFC Bank is also massively preferred when it comes to used car loans. The bank has strategic tie-ups with a number of authorized pre-owned car dealers in India, and highlights its offerings with a commitment towards faster loan approval and convenient doorstep service. Some of the basic features and benefits of HDFC Used Car Loan are listed below-
  • Easy documentation- Loan is based on just an ID and address proof. No income documents needed.
  • Great Value- Assured funding of up to 100%.
  • Customer Centric- Transparent functioning and fixed interest rates. Very nominal down payment. EMI repayment not affected by fluctuation in the financial market.
  • SBI Bank- India’s largest public sector bank is also a key player when it comes to used car finance. This loan applies for the purchase of a used vehicle that isn’t older than 5 years and may either be a passenger car, Multi Utility Vehicle (MUV) or Sports Utility Vehicle (SUV). The repayment tenure on offer is the longest in the Indian context, stretching upto 84 months. A listing of the features and benefits of SBI Used Car Loan are as follows-
  • Zero Advance EMI alongside the lowest EMI option in its class.
  • Long repayment tenure of 84 months/ 7 years.
  • Very nominal interest rates and processing fee (0.51% of loan amount).
  • Up to 85% funding depending on the on-road price of the car.
  • Pay EMI anytime through the applicable month.
  • Just 2% pre-payment penalty if you decide to finish the loan before the end of tenure.
  • Interest is calculated on the daily reducing balance model.
  • Provision for optional SBI Life Cover.
  • ICICI Bank- One of India’s premier private sector bank, ICICI, is also a leading lender of used car loans. The loans on offer are highly customer centric and loaded with an attractive array of features and benefits that will appeal to the most discerning potential customer. The highlights of an ICICI Bank second hand car loan are as follows-
  • Loan up to 80% of the overall ex-showroom price.
  • Enjoy loan tenure of up to 5 years.
  • Very attractive rate of interest.
  • Easy documentation and hassle free loan approval process.
  • Availability of insurance cover for loan liability, repayable alongside the EMI.
  • IndusInd Bank- An active player in the sphere of used car finance, IndusInd Bank offers comprehensive loan options when it comes to the purchase of a used car for personal or commercial use. The loan is offered for all makes and types of cars available in India. The salient features of this loan are as follows-
  • Attractive loan terms and efficient turn-around time.
  • Hassle free documentation and easy, fast track loan processing.
  • Transparent process with zero hidden costs.
  • Repayment tenure extends up to 60 months to suit the customer’s requirements.
  • Capital First Used Car Loan – Capital First is a Non-Banking Financial Corporation that offers a wide variety of financial services to customers from different income groups with varying financial needs. One of its most popular products is the used car loan scheme called Used Car Elite Program, which offers finance for purchase of used cars at a low rate of interest. Customers can avail an LTV of 100% under this scheme. Some of the main features and benefits of Capital First Used Car Loan are as follows:
  • Quick and easy documentation – With minimal documentation and verification procedures, the loan will be processed by the company.
  • Low interest rate – Capital First offers an attractively lower rate of interest on their used car loan scheme, compared to other lenders.
  • Repayment – There is flexibility in the repayment options provided by the company and the borrower can choose an option that is best suited to his financial profile.
  • TVS Credit Services Limited- The loans on offer here are very affordable, with the availability of a wide range of flexible pre-owned car loan schemes. The company also boasts of a quick turnaround time, robust customer service and adherence to a transparent and customer friendly loan approval and disbursement process. The salient features of TVS Credit Used Car Loans are as follows-
  • Funding to purchase any pre-owned car, manufactured in India and not older than a specified limit.
  • Hassle free, customer centric documentation and loan approval procedures.
  • Loan repayment tenures of upto 48 months.
  • Basic loan eligibility amounts to 15 times of the customer’s monthly income.
  • Open to salaried individuals, self-employed people, proprietorship or partnership firms, private and public limited companies.

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