Getting a car with a car loan doesn’t always seem smooth for people with bad credit. If you’re also one of them who got tired of rejection on car loan applications due to poor credit, there’s a way for you to fulfil your dream of having your own four-wheeler – that is used car loan. By matching used car loan eligibility, you can seriously think about getting your loan done with special preparations for poor credit.
There are many government and non-government banks and financing institutions. They offer what you exactly need – some customised used car loans. So, continue reading to dig more deeply into this matter.
Why a used car loan?
Traditional banks and money lending institutions approve pre-used car loans smoothly to people with superb credit ratings. However, if anyone applies for the same value with a poor score, they cannot qualify for auto loan eligibility from a local bank.
Due to the pressuring condition of Covid-19, now almost everyone needs a vehicle. But, sadly, not everyone on the list has a perfect credit report. In that case, many specialised banks and NBFCs offer used car loan options. That is specially designed for people with bad credit score or facing bankruptcy, repossession, foreclosure, marginal credit, or no credit at all.
Features of used car loan financing:
Under the used car loan scheme, an applicant can avail of the loan amount up to Rs.2.5 crore on a comprehensive spectrum of multi-utility and second-hand vehicles.
Besides, the applicants can apply for a loan value of 3 to 6 times their annual income. They can, too, borrow up to 100% of the worth of the auto. Thankfully, the loan repayment tenure is of 5years. However, one should not cross the loan maturity time anyhow.
Fast & easy processing –
With second-hand car financing, you can experience fast, hassle-free processing and approvals along with speedy disbursals. Moreover, you can track your application anytime, from anywhere. Also, get updates regarding your loan application status at every stage. The overall process is very transparent. Besides, you can check your used car loan eligibility before applying from your mobile phone in just 1 minute.
No income document required –
Eventually, an applicant can get almost 80% of the car’s value (minimum) with 3years of tenure without any income proof/document. As a maximum benefit, you can, too, get 85% of the car’s value at 5years of long tenure, and no income documentation is required.
Flexible Repayment Tenure –
You can avail of great deals on second-hand car financing at tremendous flexibility of repayment tenure, which may vary from 1 year to 7 years maximum.
Unparalleled service –
From end-to-end advisory to research and file transfer – you will get superior assistance from banks and NBFCs in India while applying for used car loan financing. Some financing companies even offer customised services to the customers. They further assist them in selecting a pre-used car that matches the customer’s specific needs and expectations.
Eligibility criteria for salaried and self-employed individuals:
- The salaried person must be of a minimum of 21 years and a maximum of 60 years at the time of application, and the self-employed should be between 25years to 65 years.
- Both must be Indian residents.
- Salaried individuals should have jobs for at least 2years and a minimum of 1 year of current employment proof – whereas self-employed people should have a business for a minimum of 3 years.
- Both of their earnings should be of a minimum of Rs. 2,50,000 per year.
Applying for a used car loan is easy but matching the used car loan eligibility isn’t. Therefore, organised planning is all you need when you have poor credit or no credit at all. Also, pre-determine your budget for the car, which will help you cope with the financial outline.