A pre owned car loan, also known as a used car loan, is a type of loan that aims to help a person get a good secondhand car.
The process of a pre owned car loan starts with a financial institution. It can either be an informal lender or a corporate bank. The institution will then evaluate your application by assessing the specific secondhand model that you want to have, your budget, current income source, and other financial-related information. After this, expect that they will come up with a financial plan consisting of interest rates and required monthly payments, to state some. If you agree to the terms, then you will get the loan money to buy your car. Your only responsibility after that is to keep up with the monthly payments. A pre owned car loan doesn’t really stray too far from other loan types. It works just the same since there are elements like the loan amount, monthly payments, interest rates, among others.
pre owned car loan refers to a financing method that is reserved for second hand cars. Applying for this will allow you to have a used yet still functional vehicle for a significantly lower price. This is most especially when compared to brand new models. However, note that just like most loans, a pre owned car loan works through monthly payments and interests. It means that this doesn’t come with a specific price, and will still vary depending on the financial institution that you’re working with. Getting a loan for used cars in India doesn’t come with heavy requirements. As long as you’re 21 years of age and above that can pass the required income for the model you’re looking into, then you’re good to go. You may also want to prepare a checklist to ensure that you are able to get a pre owned car loan smoothly.
Used Car Loan Documents | |
Type of document | Documents required. |
Proof of Identity |
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Proof of Address |
*Utility bill or ration card should be in the name of the loan applicant |
Proof of Age |
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Proof of Income |
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Bank Statement |
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Proof of business ownership | To prove that the business or professional activities of the applicant are operational, the following documents need to be provided:
Furthermore, the applicant must also provide a copy of the business registration license. |
Proforma invoice | The document would contain the details regarding the price quoted by a dealer for the car chosen by the loan applicant. |
FAQ
With the first-in-industry instant approval process with waivers in verifications and valuation, Bank provides an opportunity to buy your dream car while managing your finances with a variety of offers.
Repurchase - When the loan is availed for the purchase of a pre-owned, it is a repurchase loan. Refinance - When the loan is availed on an existing car owned by the applicant to raise cash, it is a refinance loan.
It takes 1 day to sanction the loan and further 2 days to process the payment after all the relevant documents have been provided.