Second Hand Car Loan

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Second Hand Car Loan

Nowadays banks have started giving loans on second-hand cars as well, which has made it easier for people to get second-hand cars. There are many people who prefer second-hand cars due to which people do not face any difficulty in taking a second-hand car. Most banks give 90% value of the car as a loan, due to which people do not face any trouble in arranging the rest of the money.

Eligibility criteria for a used car loan:-

  • The applicant should be between 21 to 65 years old
  • If the applicant is salaried, then his salary should be at least Rs 15000 and if he is self-employed, then his income should be Rs 1.50 lakhs per annum.
  • If the applicant is salaried, he should have an employee at the same place for more than a year, and if he is a self-employed employee then he should have in the same business for 3 years.
  • On the time of loan maturity, the vehicle which is applicant is taking must be less than 10 years old

Documents required for a used car loan or second-hand car loan:-

  • Any identity proof like Aadhar card, PAN card, Driving license or voter card
  • Any address proof like Aadhar card, PAN card, Electricity bill, or Voter id card
  • Form 16, salary slip, audit sheet for income proof
  • Two recent passport size photographs
  • Car valuation report

How to apply for a used car loan online or Second Hand Car Loan:-

  • Go to the or the official bank website which you have decided to take your loan
  • Go to the car loan option and select a used car loan
  • Fill the form and submit it with the documents
  • If you will get approved then the loan amount will be credited into your bank account

How to apply for a used car loan offline:-

  • Go to the bank branch by which you have decided to avail a loan
  • ask for the application form
  • Fill the form and submit it with the documents
  • If you are fulfilling all eligibility criteria then after verifying your documents you will get approved

Benefits and features of Second Hand Car Loan or used car loan:-

Flexible repayment tenure:-

Used car loan tenure is flexible due to which the borrower doesn’t face any difficulty in repayment.

90% financing of car value:-

Generally, banks offer up to  90% of the car’s market value So that the applicant has to arrange only 10%. This makes it easy for people to purchase cars.

Various EMI payment option:-

There is a so many EMI payment option like online payment, by cheque or ECS (electronic clear service).

Cheaper in comparison to their new counterparts:-

The used car loan is cheaper in comparison to their new counterparts.

simple and easy process:-

There is a simple and easy process so the applicant doesn’t face any problem while applying for it. Most car loans get immediately approved.

Things to keep in mind while buying a second-hand car:-

  • Always check the history of the car before buying it, whether it has ever been a major accident or if there is a need to do a major repair. You can also search for car history online.
  • Before buying the car, it should be checked so that if there is any defect or any crack in it, so you could tell the car’s owner to get a car repaired.
  • If the owner of the car had taken the car on loan, then the owner for NOC. If the car you are going to buy is from another state, then still you will need NOC, talk to the owner and get it ready.
  • Ensure the car’s RC(Registration Certificate) gets transferred in your name and also ensure that there must be owner’s sign.
  • If the previous owner of the car has insured the car, ensure that it is transferred to your name.

Used car loan interest rate and charges:-

Bank Name Interest Rate Processing Fee Tenure
Axis Bank 16.80% per annum 1% of the loan amount 5 years
SBI Bank 12.60% per annum Rs 1,000 to 1,500 7 years
Bank Of India 11.55% per annum 1% of the loan amount 7 years
HDFC Bank 13.0% per annum Rs 25,000 to 5000 7 years
ICICI Bank 14.84% per annum 2% of the loan amount 5 years
Punjab National Bank(PNB) 11.20% per annum 1% of the loan amount ( maximum Rs 6000) 7 years
Tata Capital 14.0% per annum 5 years
Bank Of Baroda 10.45% per annum 0.75% of the loan amount 7 years
IDBI Bank 10.01% per annum Nil 7 years
RBL 15.0% per annum 1% of the loan amount 5 years
Federal Bank 11.15% per annum Rs 1,500 to 2,500 7 years

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