Used Car Loan
A used car loan is a variable of car loan. Its a type of secured loan where the loan borrower has to keep his/her car as collateral to bank/NBFC against the loan. By taking this loan one can buy an expensive car easily. The price of a second hand car is always low compared to its price when it was bought as a new car. By taking a used car loan one can buy an expensive luxurious car in lower rates. The price of the car is decided as per its current cost on road and its condition. With a strong credit score and proper documentation one can easily get a used car loan from a leading bank/NBFC in Mumbai. They provide 60% to 70% finances as per the current on road value of the car. The maximum tenure for a used car loan is 5 years (60 months) and the interest rate starts from 15.50%*.
Why should you take a Used Car Loan?
Mumbai is a rapidly growing city in the world. Though it is very well connected internally with public transport systems like buses, local and metro; still many face easy transportation problems. If one has a car at their disposal, they can travel within or outside the Mumbai without any hassle. As Mumbai is a glomming city, everyone in Mumbai wishes to buy an expensive luxurious car. But many do not have ample amount of funds to do so. Even by taking a car loan one cannot buy a luxurious car of their dreams. Here used car loan comes to your rescue. You can buy a luxurious second hand car and pay its current on road price instead of the actual hefty amount.
- Suitable For Low Budget
Luxurious cars are often very expensive. People, who are on low budget and wish to buy a luxurious car, many times have to settle on a two wheeler. But with used car loan one can make their buying a luxurious car dream come true. Used cars cost less than its current on road price and with easy EMI options offered by banks and NBFCs; you can easily buy a used car. You can pay the EMIs which will be much cheaper than buying a firsthand new car and later paying for it.
- Freedom To Choose Desired Model:
By opting for used car loan one can easily afford any luxury car available in the market. The price of used car is derived from its current on road price considering its condition, model and insurance details etc. So the price of luxury car dramatically decreases and one can buy it by opting for easy EMIs. Here you can choose a model of the car which you won't be able to buy easily if you were to buy it as a new car. So those who desire to buy luxurious and expensive cars like SUVs will be able to get it easily.
- Easy Availability of Loan:
The process of getting a used car loan is much easier and hassle free compared to a new car loan. This is a new & secured type of loan which banks & NBFCs are always willing to offer to their customers. Banks and NBFCs offer customized used car loans with easy EMI plans for their customers. Also compared to new car loan, the banks & NBFCs lend lesser amounts to their customers. Banks & NBFCs charge very minimal fees for pre-payment of used car loan so the customers can easily pay off the loan faster than required. The interest rate on used car starts from 15.50%*.
What are the Eligibility Criteria to avail a Used Car Loan
To determine whether you are eligible to get a used car loan in Mumbai or not, there are various criteria involved. These criteria differ from loan lender to lender. These involve various factors like as income, employment status, loan tenure etc. Banks & NBFCs have divided eligibility criteria on applicant?s professions but there are some general criteria too which applies to everyone.
- These are the generic eligibility criteria to avail a used car loan:
- You have to be an Indian citizen
- Your age should be between 21 years minimum and maximum 60 years.
- You should have a good savings history along with professional stability.
Banks & NBFCs divide their applicants into two categories to determine the eligibility criteria: Salaried Applicant and Professional Applicant/ Self-Employed Applicant.
- Salaried Applicant
- This category includes regular salaried employees of private limited companies, public sector, government employees etc.
- The applicants should be doing a job for minimum 2 years and should be with the current employer for minimum 1 year.
- The applicant should have a minimum earning of Rs. 2,50,000 p.a. (including spouse?s if co-applicant).
- Professional Applicant/ Self-Employed Applicant
- This category includes professionals like doctor, engineer, architect, chartered accountant, trader, commission agent, contractor etc.
- The applicants should have been in business or the current profession for at least 2 years.
- The applicant should have a minimum earning of Rs. 2,50,000 p.a.
- The applicant should be paying Income Tax Returns regularly
What are the Documents Required to get a Used Car Loan?
The list of documents for availing a used car loan changes whether you're a salaried applicant or a self-employed professional/ businessman. The process of getting a used car loan in Mumbai can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria of the loan borrower. The list of required documents differs from loan lender to lender. But we have given a generic list of required documents below:
- The list of required documents differs from bank to bank. But we have given a generic list of required documents below:
- Neatly signed and filled car refinance loan application form.
- Passport-size photographs.
- Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
- Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
- Salary slips of last 3 months from application date.
- Form-16 issued by current employer.
- Bank statements of last 6 months from application date.
- Copy of details of all existing loans.
- A cheque covering the administrative costs/processing fees incurred by the bank in processing the application
- Business proof (registration of business)
Why Choose Ruloans To Apply For Used Car Loan?
Ruloans is India's fastest growing financial distributors. We serve customers from all the major cities in India like Delhi,Surat, Chennai,Kolkata,Ahmedabad, BangaloreRaipur, Jaipur, Nagpur, Kolhapur, Vadodra, Chandigarh, Pune, Hyderabad, Aurangabad and many more. A comprised team with mammoth experience in finance and internally developed highly proficient Loan Calculator algorithm, we are pledged to offer solutions to all your financial needs. Borrowers can apply for a used car loan with Ruloans' latest online application process. You can choose from a plethora of banks and NBFCs on our website for your used car loan. We help you borrow right.
- Hassle free process
We have developed an efficient, smooth and easy process for our consumers to get a used car loan. Our easy to use online procedure allows consumers to apply documents quickly. Our highly proficient Loan Calculator also guides the consumers to embark on a hassle free process.
- Benefits of applying with us
We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a used car loan with us, gives you a chance to avail the best offers and deals from our partner banks and NBFCs.
- Compare your loan options
You can compare interest rates, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your pre owned car loan as per your budget.
- Free expert guidance and advice
Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, without charging a dime.
We, at Ruloans understand the value of your documents and keeping them safe and private. Your loan applications are processed electronically with complete privacy and transparency.
How to Apply For a Used Car Loan on Ruloans?
- Applying for a used car loan on Ruloans involves few easy steps:
- Step 1: Go to the 'Car Loan' menu on our website and click on Used Car Loan option. There click on 'Apply Now' box.
- Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
- Step 3: Our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
- Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.
- Step 5: Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.
Frequently Ask Questions
It is not mandatory to apply for a bank account before taking a loan from it. But if you have an account with the bank, you become eligible for a relationship discount. Some banks also provide you additional services along with relationship discount.
Yes, you can track your application via SMS and email. We also provide the facility to track your application on our website via login menu.
For your loan-related queries, you can call our representative on 1800 2667576 or mail us at firstname.lastname@example.org