A pre-owned car loan means a loan for the purchase of used cars. Loans for used cars are available at very attractive interest rates and you can avail loan for a tenor of up to 7 years. Many lenders are providing loans on 100% car value. Most of the banks and financial companies are providing loans on used cars. A pre-owned car loan is available for self-employed, individuals and salaried employees.

Things to check while applying for a pre-owned car

We should keep the below-mentioned points in mind before availing of a used car loan:

• Always compare the interest rates for a used car loan and a new car loan. We should not go for the pre owned car loan with higher interest rates as compared to a new car loan.
• Most of the banks and financial companies do not provide loans on used cars if the car is older than three years.
• The loan amount will not cover the cost of the car insurance.

Eligibility criteria to get a pre-owned car loan

Here we’ll discuss the eligibility criteria to get a pre-owned car loan for salaried and self-employed.

• Age limit should be 22 to 67 years old.

• Income should be at least Rs. 22,000 monthly.

• A person should be working in a public or private institution or self-employed with a steady income.

Documents Required

These documents are required to apply for a loan.

• Application form

• Passport-size photographs

• Car valuation report

Identity Proof

From the below list any document can be submitted as proof of identity.

• Aadhaar Card
• Passport
• Driving License
• Voter’s ID
• PAN Card

Address Proof

From the below list any document can be submitted as proof of address.

• Voter’s ID
• LIC Policy
• Electricity Bill
• Aadhaar Card
• Driving License
• Ration Card
• Passport

Income Proof 

Below mentioned documents are required to submit as proof of income.

• Profit and loss account
• Balance Sheet
• Audit Sheet
• Form 16
• Salary Slip
• Bank Statements

Get a personal loan for a pre-owned car

You can get a personal loan to buy a used car. This loan can be availed the same day or within a few days after the approval from the lender. You can avail of these loans by filling out the online forms and by submitting the relevant documents. The interest rate depends on the credit score, relationship with the lender, tenor, and loan amount.

Get a quick loan for a pre-owned car

In case you need to borrow less amount for a used car then you can opt for a quick loan. Quick loans are types of short-term loans, advance salary, line of credit, etc. We can choose the option which is suitable for us right from our mobile phones. The process of quick loans is different from the traditional loans which we get from banks and financial companies. 

The lending process is simple and quick with easy registration and verification. If we meet the eligibility criteria the funds are transferred immediately to the bank account. We can repay the loan amount with the comfortable options chosen by us. In our country now most of the banks have started providing quick loans to fulfill the needs of the borrower. Anyone can avail of quick loans from Non-Banking Financial Companies and Peer-to-Peer lenders apart from the banks.