Pre-Owned Car Loan: Get a Loan for Used Cars

Having a car makes life a lot easier as you don’t have to depend on public transport to commute. But, in case you don’t have the funds required to purchase a new car, you can always opt for a second hand car. 

Various lenders provide 2nd hand car loans or pre-owned car loans that you can choose from. Let us look into used car loans in detail.

What is a Pre-owned Car Loan?

Pre-owned car loans or 2nd hand car loans are secured loans taken for purchasing a pre-owned vehicle. These loans are provided by most banks and are quite affordable. The repayment term can range from 1 year to 7 years and up to 90% of the car value is usually provided as a loan by certain lenders.

You can also use Moneyview instant personal loans as a ‘second hand car loan’. 

Features and Benefits of a Used Car Loan

Given below are some of the salient benefits and features of a ‘second hand car loan’ -

• 2nd hand car loans are available for most types of used cars including SUVs, MUVs, sedans, etc.

• Most lenders offer financing for up to 80% to 100% of the car value

• Since this is a secured loan where the used car serves as collateral, interest rates are lower as compared to those of personal loans

• Repayment tenures of up to 7 years are offered. However, this can vary depending on the lenders

• Most lenders offer a hassle-free application process which can be completed online

• The documentation requirements are quite minimal and in most cases require only proof of identity, address, and income

• Salaried and self-employed Indian residents can avail of a used car loan. However, their age, income, and other criteria will determine the amount of loan provided

• Your loan can be approved within just 30 minutes if all your documents are in order and you’ve met the eligibility criteria

Moneyview instant personal loans come with a myriad of features and benefits which make it a great choice to be used as a 2nd hand car loan. The following are the benefits and features - 

• Visit the Moneyview website and check your eligibility in just 2 minutes

• Loan amounts can go up to Rs.10 Lakh based on your eligibility and requirements

• Interest rates start from just 1.33% per month

• There is no need to arrange for a guarantor or pledge any collateral

• A CIBIL or Experian score of just 650 is needed to be eligible

• Repayment tenures start from 3 months and go up to 5 years

• The whole process, from application to approval, is 100% paperless

• The loan amount gets credited to your bank account within 24 hours of submitting your loan agreement

Eligibility for Second Hand Car Loan

The eligibility criteria for a used car loan will vary depending on the lender. However, the basic eligibility criteria are given below -

• All salaried and self-employed individuals can avail of a 2nd hand car loan

• Applicants will need to earn a minimum of Rs.2.5 Lakh per annum 

• Borrowers must be between 21 to 57 years old to get a ‘second hand car loan’

• The higher your credit score (CIBIL score of 750 and above), the greater your chances of getting an affordable loan

• Certain lenders also require applicants to have worked at their organization for at least 1 year before applying 

Documents for Used Car Loan

Given below are some of the general documents required for a second-hand car loan -

• Proof of Identity such as an Aadhaar Card, PAN Card, Valid Indian Passport, etc.

• Proof of Address such as Aadhaar Card, Valid Indian Passport, Utility Bills, etc.

• Proof of Income such as salary slips, bank statements, etc.

• Car valuation report, car insurance reports (if valid)

Please note that the documentation requirements will vary from one lender to another.

Fees and Charges for 2nd Hand Car Loan

Given below are the fees and charges of used car loans -

Please note that the fees and charges will vary based on the lender.

Used Car Loan Interest Rates of Top Lenders

Here are the used car loan interest rates of some of the top banks in India - 

Bringing home a second-hand car is a great way to save money as well as give a new home to a pre-loved vehicle. But there are some things that you must keep in mind before making the decision -  

While the interest rates for used car loans are lower than personal loans, they are still higher than those of new car loans

Check the car to be purchased thoroughly. Take it for a test drive, ensure that all documents are in place, and check the vehicle history as well

Ensure that the registration certificate and insurance are transferred to your name once you purchase 

You may have to provide a downpayment in order to get a second hand car loan

Even though the interest rates of personal loans are higher than those of used car loans, they have many other benefits. If you opt for instant personal loans from Moneyview, you can get 100% of the vehicle price, and also get the loan amount within 24 hours. 

To know more, visit the Moneyview website or download the app.