Used Car Loan Application Process A Complete Guide 2022
Last Modified: 22-September-2022
Purchasing a used car is a pocket-friendly way of owning a four-wheeler without shelling out a lump sum. If you need financing options, you can take a used-car loan to buy a second-hand car of your choice.
You can get up to 95% of the finance to buy a used car that might amount to 50,000- 10 lakhs. Applying for a used car loan with Muthoot Capital is easy and quick. Muthoot Capital provides loans for a used cars at the lowest interest rates starting from 8.99% per annum. The repayment tenure is flexible and can be anywhere between 12-60 months. The interest rate depends on the model of the car, its condition, and the credit history of the applicant.
However, you must keep in mind the following tips to make the application process more manageable. Continue reading to know why using a used car loan calculator can be beneficial for you in this process.
Tips to Make the Used-car Loan Application Process Easy
1. Choose Muthoot Capital
Buying a car from a reputed dealer like Muthoot Capital makes your application process more straightforward with a quicker approval. You must also check the model of the car and its age to understand if the vehicle provides you with value for your money. Muthoot Capital has made its process customer-centric to make your used car loan application process easier.
2. Finalise the Loan Amount
While filling out the application form for a used-car loan, you will be asked to fill the loan amount. You can discuss various available schemes with the agent and find the estimated value. According to your chosen car model, you will receive finance up to 95% depending on your loan eligibility.
3. Find the Right EMI and Tenure
While you finalize the loan amount, you must also calculate the suitable EMI and tenure for your used car loan. Using the used car loan calculators online, calculating the EMI can make things easier and manageable. You can find the right manageable amount, EMI, and tenure for your loan by using the EMI calculator by Muthoot Capital online for a hassle-free process.
4. Collect the Required Documents
After finalizing the suitable EMI and amount for your used car loan, you must start collecting the required documents. These documents will be required at the time of application, and you must keep them ready beforehand for a smoother process. The documents needed for both salaried and self-employed individuals are:
- ID Proof – You must have any government-issued ID like Aadhar Card, PAN Card, Passport, or Driving License.
- Residence Proof – You can use any ID proof mentioned above, electricity bill, gas connection bill, or ration card.
- Income Proof – For proof of your income, you might be asked for three months’ bank statements, salary slips, Form-16, or past it.
- Asset Proof – You must have the latest land or building house tax receipt for asset proof.
- Photograph – A current passport size photograph.
5. Check Eligibility for the Loan
To make the application process for the loans for used-car easier, you must check your eligibility for the loan. The eligibility criteria set by Muthoot Capital are easy, and you must check your eligibility to keep your application from rejection. The eligibility criteria are outlined here:
Age – The minimum age required to apply for the loan is 21 years, and the maximum age is 65 years at the time of closure of the loan
- Income- The minimum salary required for a salaried individual is 15,000 rupees per annum, while for a self-employed individual, the profit must amount to 1,50,000 per annum
- Mode of Employment- The applicant must either be self-employed, salaried, or an agriculturist to be eligible for the loan.
Read More – Best Method to Calculate EMI on Used Car Loan
If you have chosen a car, then get it home by applying for a used car loan from Muthoot Capital. The documentation is minimal, and the approval process is speedy. You can check the pre-requisites for the loan before applying by determining your eligibility, using an EMI calculator online, and selecting the right amount and tenure to avail the loan quicker. A loan for a used car from Muthoot Capital enables you to get the vehicle of your dreams by charging the lowest interest rate with no hidden terms.