With the growing popularity of used or pre-owned cars, it’s becoming simpler and easier to get attractive Used Car Loans. If you’re planning to apply for a Used Car Loan, keep this information handy.
Want to buy a car and but don’t really want to spend too much? How about buying a used car? If you think about it, a well-maintained and reliable used car could be a great alternative to a new one!
Additional Reading: How To Apply For A Used Car Loan
Buying pre-owned cars have become quite popular these days as it’s often possible to get a good deal without burning a hole in your pocket. Moreover, getting a Used Car Loan has become far simpler and many banks offer good interest rates and deals. But before you apply for a Used Car Loan, here are a few things you need to keep in mind:
Eligibility Check
To be eligible for a Used Car Loan, you must fulfil the following criteria:
- You are aged between 21 to 65 years.
- You are a salaried individual with a minimum net annual income of minimum Rs. 3,00,000 (you can include the income of a co-applicant as well).
- You are a self-employed individual, with a net annual income not less than Rs. 4,00,000 (you can include the income of a co-applicant as well).
- You are an agriculturist, with a minimum annual income not less than Rs. 4,00,000 (you can include the income of a co-applicant as well).
- Partnership firms, public sector undertaking, private company or people employed in the agriculture sector or other such dependent industries can also apply for a Used Car Loan.
Different lenders can have different minimum annual income requirements. Check your eligibility for a Used Car Loan here before applying.
Documentation
The following documents are required when applying for a Used Car Loan:
- Proof of age, residence, and identification (any of the KYC documents)
- Passport-size photographs
- Proof of income (salary slips/Form 16/ITR slips)
- Last 6 months bank statement of all your bank accounts
- Copies of pre-owned car’s RC Book and insurance records
- Documentation or deed papers to prove the credentials of a partnership firm or proprietorship (if applicable)
Additional Reading: Top 10 Used Car Loans: Take Your Pick
Current Interest Rates Offered By Popular Lenders
To give you an overview of the interest rates on Used Car Loans, here’s a list of some popular lenders and their current interest rate range:
- TVS Credit Services – Floating rate – 13.1% to 15%
- Capital First – Floating rate – 12.5% to 14.5%
- Dena Bank – Floating rate – Starts from 11.50%
- Oriental Bank of Commerce – Floating rate – Starts from 11.40%
- AU Small Finance Bank – Floating rate – Starts from 16%
- Mahaveer Finance India Ltd – Fixed rate – 12% to 13%
- HDFC Bank – Fixed rate – 12% to 15.5%
- Sundaram Finance – Fixed rate – 12% to 14%
Note: Used Car Loan interest rates mentioned above are as of writing this article (17th June, 2018). Interest rates are subject to change.
Additional Reading: Popular Used Car Loans In India
Now that you know all the little things you need to know about Used Car Loans, it’s time to get started with your application. Click the link below to apply.