Can I Get a Car Loan for Second Hand Car

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If you want to buy a car and are short of funds, a second-hand car (also known as a used car or a pre-owned car) can be a budget-friendly option. The second-hand car market in India has grown significantly in the past few years. As a result, it is no longer difficult to find used cars that are not just budget-friendly but in great condition too.

Moreover, top lenders in India also offer loans for purchasing a used car. A Used Car Loan works just like a normal Car Loan that you avail for purchasing a new car. Here are some important details about loans to purchase used cars.

How much used car loan can you borrow? What is the loan tenure?

Depending on your eligibility and other factors like the condition of the car, lenders can offer up to 80% of the valuation of the car as a loan. Most lenders offer such loans for up to 5 years.

You can opt for a shorter tenure to repay the loan sooner. But a shorter tenure will increase your EMI amount. So, make sure that you select a loan amount and tenure whose EMI you can easily afford.

What are the eligibility requirements of a Used Car Loan?

Every lender has their own eligibility criteria based on which they approve or decline loan applications. The requirements generally revolve around your monthly income, occupation, work experience, credit score and age. You can check the eligibility requirements of a lender by visiting their official website. You can check the eligibility criteria for ICICI Bank Car Loan here.

Car EMI Calculator: estimate your Used Car Loan EMI easily

Use ICICI Bank’s Used Car Loan EMI Calculator to estimate the EMI of your Used Car Loan in just a few clicks. Enter your loan amount, interest rate and the loan tenure to get an instant EMI quote. It’s simple, fast and helps you plan your monthly budget better.

What are the documents needed to apply for a Used Car Loan?

Just like the eligibility requirements, the documentation varies from lender to lender. However, most lenders will require you to submit at least your ID proof, address proof and income proof. You’ll be required to submit these documents along with an online or offline loan application form.

How to apply for a Used Car Loan online?

Most lenders now allow you to apply for a Used Car Loan online. You’ll be required to fill an online loan application form and submit it with the required documents. After submitting the documents, the lender will start the approval process. If the loan is approved, the lender will then disburse the loan amount which you can use to purchase a used car of your choice.

What are the additional charges when applying for a Used Car Loan?

Apart from the interest rate of a Used Car Loan, you should also check the additional charges of the lender before applying for the loan. Most banks require you to pay various fees such as loan processing fee, documentation charges, CIBIL report charges and registration certificate collection charges. There are also charges for pre-payment of the loan, cheque bounce, loan cancellation and to get a copy of the amortisation schedule and a duplicate NOC. Ensure that you check these charges thoroughly before finalising the loan.

Purchasing a pre-owned car with a Used Car Loan

Purchasing a used car is already a budget-friendly option and the loan only makes it easier for buyers. With attractive interest rates, flexible loan tenure, online loan application and loans up to 80% of the value of the car, you can experience convenience and affordability when purchasing a used car. Select a lender carefully to enjoy the benefits of availing a Used Car Loan.

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