According to a report published in Livemint, the total number of purchases of pre-owned cars for FY 2018-19 was pegged at 4 million, beating the sale of new cars at 3.6 million units by quite a margin. This is an effect of economic slowdown that has been reducing consumption in our economy, shifting individuals’ demands towards pre-owned cars from new ones. This expanding market for pre-owned cars has been further fuelled by the easy availability of second hand car loans from various financial institutions in the country.
With more financial lenders introducing this particular advance, availing the same has become significantly easier.
Following is an overview of the eligibility criteria and documents you will need to submit to avail such an advance without any hassle.
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How does used-car financing work?
The process of availing a second hand car loan and utilising the funds to purchase a pre-owned car is quite simple. It can be summarised in a few steps –
- Choose the car you want to purchase.
- Apply for this advance and enjoy approval in less than 24 hours’ time.
- Upon approval, your dealer will receive the requisite amount within 48 hours.
- Complete all payment and documentation formalities and receive your car.
This process to purchase a used car with such a loan is quite simple and can be carried out within a short span of time.
Nonetheless, to ensure that you do not encounter any glitch in the process, make sure you check the eligibility criteria and documents required to avail the advance.
Eligibility criteria for the advance
Criteria to successfully avail personal loans as well as the terms of such loans vary between lenders. For instance, to avail used car loans from financial institutions like Bajaj Finserv, you will need to fulfil the following criteria –
- You have to between 21 years and 60 years of age if you are a salaried professional. For self-employed individuals, age limit is set between 25 years and 60 years of age.
- Salaried individuals need to have a minimum income of Rs.23,000 per month alongside a minimum of one year of work experience.
- You can avail this loan solely for the purchase of private pre-owned cars.
- At the time of availing this advance, the respective car should not be above 10 years of age.
- The car you want to purchase should not have more than 3 previous owners.
If you satisfy the eligibility criteria, you can opt for such a personal loan with diverse features and benefits to fund the purchase of a second-hand car.
Apart from fulfilling the criteria mentioned above, individuals should also furnish the following documents to avail the advance –
- KYC documents.
- Bank statements from last 3 months.
- Salary slips from last 3 months for salaried individuals.
- Income tax returns from last 2 months for self-employed individuals.
Process to apply for a second hand car loan
If you satisfy the above mentioned criteria, you can apply for the advance by following the steps mentioned below –
- Visit the lender’s website.
- Open the application form for the loan.
- Fill in details like personal information, required loan amount, etc.
- Attach the required documents.
- Verify all the details and submit your application form.
Your financial institution will review your application and approve the advance within 24 hours if everything is in order.
If you are not eligible to avail this loan, you can alternatively avail a personal loan from NBFCs like Bajaj Finserv. They offer additional repayment-friendly features other than attractive rates of interest.
But before applying for this advance, make sure you check personal loan eligibility and documents required to avoid any hassles with the application process. You should also calculate your personal loan EMIs beforehand to make sure that you can afford the advance. Apply for a personal loan with these pointers in mind to easily avail the second-hand car of your choice.