Buying a car may be among your top priorities as it allows you and your family to enjoy a safe and convenient ride while travelling. Also, instead of purchasing a brand new car, you may plan to buy a second-hand car due to the high prices of new car models. Due to the steady improvement in the demand for used or pre-owned cars, many lenders are offering loans for second-hand cars these days. For getting a quick pre-owned car loan in India, you need to take these things into account:
Personal Loan Eligibility
You can apply for any pre-owned car loan provided that you are a resident Indian and your age falls between 20 and 60. Also, you may apply for this loan irrespective of whether you are self-employed or a salaried employee.
However, you should check personal loan eligibility such as expected income, credit score, cars for which loans are available, etc. before applying as you wouldn’t want your loan to be rejected if you fail to meet any of these requirements.
Loan Amount
Lenders usually do not provide a loan against the entire amount of a second-hand car as you are supposed to arrange some of the funds by yourself. However, the percentage of the car value that is offered as a loan will play a major role in determining whether it will be a feasible option for you or not. Therefore, you must check the kind of finance you will get and at what interest before applying. With a personal loan for used cars, you may get funds up to Rs.25 lakh.
Type of Car
Before seeking a loan, verify whether the car and the type of car that you are planning to buy are covered by the lender or not. Some lenders offer loans to private cars only whereas some lenders offer a pre owned car loan only to selected car brands and models.
Age of Car
The chances of loan approval are also determined based on the car’s age. For instance, a lender might not offer a loan for a second-hand car that is older than 10 years. The lender might refrain from providing the loan even if the car is not in a good condition. This is mainly due to the risks involved in financing cars that are not in good condition.
Previous car owners
Don’t forget to cross-check the number of people who owned the car that you are thinking of buying to date. This is because a bank or private lender might not offer a loan if the car has been owned by more than 3 individuals previously.
Online personal loan
If you find it difficult to arrange finances for purchasing a used car with a loan, you can always apply for a personal loan. To get an online personal loan, you will need to check the websites and mobile apps that are offering low interest personal loan options.
Though a lender will not check the condition, age, number of owners, etc. before granting a personal loan, your eligibility in terms of credit score, loan history, monthly income, etc. may be cross-verified. Therefore, it is better to consider these criteria before applying or else your loan application might get rejected.
To avoid wasting your time unnecessarily, you can check the pre-approved loan offers that you are eligible for. Many lenders do offer pre-approved personal loans to their customers and if your loan eligibility, credit score, and monthly income are as expected, you might get a low interest personal loan as well.
Bajaj Finserv offers some of the best pre-approved loans in the market and you can validate your eligibility by visiting its website and providing some trivial details such as name and mobile number.