The Process To Apply For A Pre-Owned Car Loan Online In India

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Buying a car that is already used by one or multiple owners is not a bad idea especially if you need a car just for commuting purposes. Thankfully, used car loans are now available in India as the trend of purchasing second-hand cars has increased tremendously over the last decade. However, you need to be aware of the process that financiers adhere to before disbursing a pre-owned car loan. The below steps will act as a guide if you are seeking financing options for purchasing a used car:

Choose a car 

Before applying for a used car loan, you need to choose a car first. Visit a local showroom or contact your friends and relatives to find a decent car for you at a reasonable budget. 

Find a lender 

Once you are satisfied with the car that you will be purchasing, you can figure out the list of lenders who offer a loan for buying a used car. Though several lenders provide a pre-owned car loan these days, the car model that you are planning to purchase may not be covered by a specific bank or NBFC. Therefore, find a suitable lender who can offer a loan specifically for the car model that you are interested in. 

Compare interest rates 

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After short listing the lenders, you should compare the terms of the loan such as interest rate, loan tenor, car services, loan amount, etc. to find the best possible loan at the least possible interest rate. 

A low-interest personal loan can also fulfil your requirements if you find the used car loan rates are too high. Also, don’t forget to check the percentage of the car value covered by the lender as some lenders offer only up to 80% finance for second-hand cars. You should be able to find the lenders that are offering at least 90% of the used car’s value easily by exploring the options online. 

Online application 

Once you are satisfied with the terms and conditions of the loan, you may proceed to check personal loan eligibility to ensure whether you meet the specific eligibility requirements followed by banks to approve a used car loan. If you meet all the requirements, you can proceed to fill the loan application form online. 

Now, submit the online form along with the required documents and remain in touch with the bank representative to know the status of your loan application. 

If a pre-owned car loan is not a feasible option for you, get an online personal loan that is offered at a competitive interest rate. Many lenders might be more than happy to grant you a personal loan rather than a used car loan because of the risks involved in financing second-hand cars. However, if your income or CIBIL score is not as required, issues might arise while getting a personal loan as well. In this case, you can opt for personal loan for salaried employees that are offered by small financing banks and peer-to-peer lending firms. Also, do not forget to check the credibility of the loan provider as you would want to avoid any further complications while and after procuring a loan. An ideal loan provider will offer a loan at a competitive interest rate without levying any unseen or hidden charges. 

A better move would be to check the pre-approved offers of legitimate lenders. Bajaj Finserv offers pre-approved personal loans to its select customers. These offers also include used car loans and you will have to provide your basic details like name and number to figure out whether you are eligible for these offers.

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