As the name suggests, a used or pre-owned car loan is a facility offered to people who are looking to buy a used or pre-owned car.
Such cars generally come with lower registration fees and insurance charges, a slow rate of depreciation, and a lower loan amount to be borrowed. All in all, they offer good value for money.
But, not all the terms and conditions that come attached to these loans are well-documented or understood. Let’s take a look at some of the more common questions customers generally have about these type of loans:
1. How do I apply for a pre-owned car loan?
You can easily apply for such a loan on our website or by visiting the closest branch. You will need to provide your details and the required documentation before your loan is approved.
2. What is the maximum amount of loan that I can avail?
Depending on the type of car, its condition and age, and your own loan repayment capability, the amount that the financial institution is willing to offer will vary. In most cases, you can get up to 90% of the total value of the pre-owned car. In certain special cases, finance for the entire cost is also approved.
3. How do I know if I am eligible for it?
Irrespective of whether you’re a salaried individual or a self-employed person, you can apply for a previously owned car loan. However, your age, salary and financial standing will be taken into consideration. You are most likely to get a loan approval if:
- You are a salaried individual in the age group of 21 to 60 years, earning a minimum of Rs. 2,50,000 per year.
- You are self-employed in a partnership firm with an annual business turnover of no less than Rs. 4,50,000.
- You are a self-employed individual involved in a business that falls under HUF or a Trust.
Note: In most of the above cases, you can also avail a loan for small business.
4. What is the tenure of the loan?
The tenure of the loan depends on the age and condition of the car. Typically, it ranges from a minimum of 1 year to a maximum of 5 years.
5. How much time will it take for my pre-owned car loan to be approved?
With minimal details and documentation, we ensure a simple and speedy used car loan process. Our wide network of branches at over 700 locations makes it super easy to access and super smooth to process your pre-owned car loan.