How To Qualify For A Used Car Loan: Requirements And Eligibility
- May 18, 2023
- | 63
How to Qualify for a Used Car Loan -? Eligibility Check
Salaried or self-employed individuals residing in India can apply for used cars loans. Here are the eligibility criteria that customers need to meet to qualify for a used car loan:1. Age Limit
- At the time of making a loan application, the age should be 21 years and 65 years at the end of the loan tenure.
2. Income
- Salaried individuals should have a minimum salary of Rs. 1,80,000 per annum and self-employed should have a net annual profit of Rs. 1,50,000.
Documentation Required to Qualify for a Used Car Loan
Borrowers should be able to submit the required documents as mentioned below:?- Identity Proof?
- Income Proof
- Address Proof
- Passport Size Photo
Why Consider Used Car Loans?
- 100% Financing: A used car loan can cover the entire cost of the car you select. Many lenders do not ask borrowers to pay any upfront down payment. They can provide customers with a 100% price of the vehicle. This option is particularly beneficial for customers with limited funds.
- Affordable: At reputed lending institutions, used cars loans are available at reasonable interest rates. It can be as low as 0.70% per month (8.5% per annum). To enjoy affordable used car loan interest rates, maintain a high credit score. Following a few simple things, customers can increase their chances of securing a low-interest rate loan. First, choose a shorter loan tenure. Maintaining a low debt-to-income (DTI) ratio can also help reduce used car loan interest rates as it indicates the borrower's financial stability. Another considerable aspect is approaching the existing lender to secure a loan at a lower interest rate. Also, one can opt for a newer model - such as a 1-year-old car instead of a 3-year-old car to reduce the used car loan interest rates.
- Instant Approval: Customers can apply for a used car loan online with minimal documentation, making it a convenient and quick way to secure funds. If the borrower meets the lender's eligibility standards well, their application can be approved instantly, and the sanctioned loan amount will be disbursed directly to the bank account.
