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Buy your Dream Car by used car loan financing

Car is a dream of many people and sometimes it becomes difficult to afford due to heavy prices. But this doesn’t mean that you can’t fulfil your dream. You can go for a good second-hand car. India is having a very big market for automobiles and by having good research, you can easily find your dream car at a reasonable price. Not only this you can opt for the facility of car loan financing and own a used car on EMI. This will not bring a burden on your pocket and you can easily live your dream too. By submitting all your documents and after verification, you can easily get upto 90% of car value which can be repaid in easy EMI options.

 Eligibility Criteria:

The eligibility criteria are divided into two parts i.e., salaried person and for a self-employed person. Both the entities are having a few different types of eligibility criteria which are as discussed below:

  • Salaried individual:

  1. The minimum required age is 21 years and the maximum required age is 65 years.
  2. You need to be employed for at least 2 years and a minimum of 1 year of experience with your current job.
  3. You need to have a minimum of Rs. 2,50,000 per year.
  4. A high and decent cibil ratings required.
  • Self Employed:

  1. The minimum age required is 21 years and the maximum is 65 years.
  2. You should have a business for at least 3 years.
  3. Your business should at least have a minimum of Rs. 2,50,000 per year.
  4. All the above-mentioned points are basic Eligibility criteria that a person needs to fulfill to get a used car loan easily.
  5. Once you fall under the eligibility criteria the next step is to provide the documents for loan approval. There are different documents required for different classes of people which are follows:
  • In case of Self Employed:

  1. ITR returns for more than 2 years.
  2. Bank statement for 6 months.
  3. Aadhar card and relevant address proof.
  4. Copies of RC, insurance, and pollution of the said car.
  5. Photos of applicants.
  • In the case of Salaried Person:

  1. Salary slips for the latest 6 months you need to arrange as it is a mandatory requirement.
  2. Form 16 for the last 3 years you need to arrange as it is also a mandatory requirement.
  3. Aadhar Card and other relevant address proof.
  4. I’d card.
  5. Photos of applicants.
  6. Copies of RC, insurance, and pollution of the said car.
  • In the case of Partnership Firms:

  1. Last 2 years statement of profits and losses, balance sheet.
  2. ITR return.
  3. Bank statement for last 6 months.
  4. PAN Card of the firm.
  5. Deed of the firm.
  6. Photograph of applicants.
  7. Copies of RC, insurance, and pollution of the said car.
  • In case Private Company:

  1. Last 2 years statement of profits and losses, balance sheet.
  2. ITR return.
  3. Bank statement for last 6 months.
  4. Director address proof.
  5. Company address proof.
  6. Authoring director address proof.
  7. Copies of RC, insurance, and pollution of the said car.
  • In case of Trust or Societies:

  1. Last 2 years ITR with the Audit report, Balance sheet, P&L Statement.
  2. Bank statement for last 6 months.
  3. Ownership proof.
  4. Address of trust.
  5. Member’s list and all details.
  6. Copies of RC, insurance, and pollution of the said car.

If any person or any legal entity wants to apply for a second-hand car loan then the above-mentioned documents need to be submitted to the bank or financer for loan approval.  After successful verification of the documents, you will easily get the loan on your dream car.

Advantage of availing Second-hand car loan:

  • It helps to fulfill your dream.
  • Interest rates are lower as compared to finance available through private financers.
  • Easy monthly EMI up to 5 years.
  • Hassle-free process.
  • Easy documentation
  • You get 80-90% loan of the car value.

Conclusion:

It can be concluded that if you wish to fulfill your dreams then you can easily apply for used car loan financing. You can use the vehicle and pay used car EMI on monthly basis. This will benefit you as you need not travel on public transport.

Frequently Asked Questions:

Q1. Can we get finance on a used car?

Ans1. Yes, you can get finance on a used car.

Q2. What is the tenure of the loan?

Ans2) Generally the tenure is 3-5 years.

Q3) What is the prevailing interest rates?

Ans3) The interest rates prevailing is 14-17% p.a.

Q4) Can we repay in monthly installments?

Ans4) Yes, money can be repaid through monthly installments.

Q5) How much loan amount get sanctioned?

Ans5) If you have good Cibil score then you easily get 80-90% of car value.

Q6) Do we require old car documents?

Ans6) Yes, there is a requirement of RC, Insurance and Pollution certificate of old car.

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