Easy Ways To Apply For A Used Car Loan
Last Modified: 16-May-2022
In 2018-2019, Indians bought 3.6 million new cars, while the number of used cars bought was around 4 million. Taking a second-hand car loan can help you purchase your dream vehicle with ease. You may call it a Loan for a used car too that gives you the right to buy a pre-owned vehicle you want by paying small affordable installments each month. We, at Muthoot Capital Services Ltd, offers used car loan for up to 95% of its Insurance Declared Value.
Important Things to Consider Before Applying for a Used Car Loan
Before you make the important decision of applying for a used car loan, you should be aware if you have the correct documents and whether you’re eligible for a used car loan.
- Eligibility: You must fulfill a few conditions upon which the lender can process your application. These conditions are listed below:
- Employment Status: The applicant must either be a salaried employee, self-employed person or agriculturist.
- Age Limit: At the time of application, the applicant should at least be 21 years old. Your age at the end of the loan tenure should not exceed 65 years if you want to apply for a used car loan.
- Salary: For salaried applicants, the minimum salary is set at Rs.15,000 per month. Applicants who are self-employed should make a minimum net profit of Rs.1,50,000 per annum.
- Documents Required: The documentation required to successfully apply for second-hand car finance is simple.
- Valid Identity Proof: These include passport, Aadhar Card, Voter ID card, PAN card, or driving license. Submitting anyone will suffice.
- Valid Address Proof: Anyone passport, Aadhar Card, Voter ID card, PAN card, electricity bill, or ration card.
- Income Proof: You must submit either of your ITR, form 16, payslip, or salary credit in a bank statement.
- Asset Proof: You should also submit the latest land/building/house tax receipt.
- Photograph: Make sure you carry your most recent passport-size photo.
How to Apply for A Used Car Loan?
You can instantly get a used car loan at competitive rates. Before applying for a used car loan, you should follow the instructions given below.
- Make sure you are eligible for a used car loan and have all the paperwork you need. You can check eligibility as per the above-mentioned criteria.
- Apply Now on the Muthoot Capital Service website: www.muthootcap.com
- Check your eligible loan amount.
- Use the EMI calculator on Muthoot Capital Services website to determine the term and amount that best suits you.
- Submit your documents.
- Get your loan approved and drive away in your dream car.
Things to Keep in Mind When Applying for A Used Car Loan
You should be mindful that certain charges other than interest rates are levied when you apply for a second-hand car loan.
- You should calculate your EMI on the used car loan EMI calculator based on the second-hand car loan interest rate.
- There is a small, one-time, payment fee imposed on the sum of the loan. This fee is non-refundable.
- If you intend to repay before the due date, there is a nominal fee for the pre-payment of the loan or foreclose.
Benefits of Used Car Loan
Before applying for a used car loan, you should be aware of all the benefits it brings to the table. Some of the benefits are:
- Repayment options are flexible. They range from 12 to 60 months.
- Schemes are attractive and interest rates are affordable.
- Used Car Loans are hassle-free loans as they require simple documentation Moreover, the approval of these loans is quick.
The used car loan processes at Muthoot Capital Services Ltd are simple and take the minimum amount of time to complete. When applying for the loan remember that the loan amount will depend on your eligibility along with the model and make of car you want to buy