The used car market has been receiving high demand lately despite a laid back economic growth of the country and receding incomes of individuals. One of the primary reasons why individuals have been able to meet their needs for used car purchase has been the convenient availability of necessary funding. Today, several lending institutions provide pre owned carfinance with attractive features and facilities to make borrowing reasonable for prospective used car buyers.
Nevertheless, used car financing also involves a set of formalities one must fulfil to receive quick and hassle-free approval for the advance. For instance, one needs to meet the minimum eligibility and document requirements to avail funding. It is essential that you match your eligibility with lender requirements for convenient approval of the advance. Let’s check them out one by one.
Eligibility Criteria for Used Car Finance
Prospective used car buyers need to meet the minimum eligibility requirements to apply for the necessary pre owned car finance with the selected lender. Some of the standard eligibility requirements to avail funding include the following.
– Applicant must be above 18 years of age. Some lending institutions also lay down maximum age eligibility to apply.
– One must be a residing citizen of India and hold the necessary documents to prove so.
– He/she must also have a stable source of income to apply for the advance, whether through employment, business or professional practice.
– Some lending institutions also require individuals to meet minimum income criterion depending on the city of residence.
A high eligibility fulfilment can fetch individuals a financing value of up to Rs.50 Lakh. Such big-ticket funding allows one to purchase a used car of his or her desired make and model. Once availed, you need to repay the advance through EMI payable over a pre-determined tenure. Such tenure can be flexible and extended up to 5 years for convenient repayment in easy EMIs.
Depending on the lending institution selected, you may also be asked to fulfil additional eligibility requirements. So, make sure to visit lender website or enquire about the necessary requirements before applying.
Document Requirements for Used Car Loans
The document requirement for pre owned car financeclosely follows the eligibility criteria and is submitted to prove their fulfilment thereto. Some of the standard document requirements for used car loans include –
– Proof of identity: It includes Aadhaar card, Voter ID card, PAN card, Passport, or any other valid photo identity proof.
– Proof of address: One can submit documents like Aadhaar card, voter ID card, Passport, ration card, utility bills and the likes to establish address.
– Proof of income: Depending on the occupation one pursues, the income proofs can include salary slips, ITR filed, bank account statements, financial statements and the likes.
Additional documents may be required by the lender depending on the applicant’s eligibility and other factors.
Step-By-Step Application Process
One can proceed with the following steps to apply for a used car loan.
1. Select the loan offer available through lender comparison based on interest rates, features and other facilities.
2. Visit the lender website and fill up the application form with necessary details.
3. Provide the required documents to complete loan application.
Individuals with the right eligibility can expect to receive funding shortly with immediate approval of the pre owned car financeapplication. Submit all income documents available with you to increase your loan eligibility for improved chances of quick approval.