When individuals have a tight budget and want to buy their dream car, they may have to wait for a few months to get sufficient money.
Paying for a new car is an expensive process. Instead of paying for a new car a person can buy a used car and pay less. There are numerous financing options available if they choose to buy a used car.
A used car loan is one of these possibilities. They can finance the purchase of a used car with a second-hand car loan. In this way, they will not have to delay the purchase of their dream vehicle.
If applicants match the eligibility requirements, used car loans are disbursed quickly and without fuss.
When applying for a used car loan, keep two things in mind. The first is the eligibility conditions for the applicant, and the second is the documentation for the car they want to buy. They can acquire the loan right away if these two conditions are met.
Eligibility criteria to avail of a second-hand car loan
Different lending institutions have different eligibility criteria for getting a second-hand car loan.
To get a Muthoot used car loan, individuals need to fulfill the below criteria:
To get a used car loan from Muthoot Capital, applicants need to be a resident of India.
To avail of a second-hand car loan, applicants need to be at least 21 years (at the time of application) and 65 years (at the end of the loan tenure).
Applicants from various backgrounds are eligible, including salaried employees, self-employed people, and agriculturists.
The last eligibility criterion is income. Salaried employees should earn at least Rs. 15,000 per month, and self-employed people must have a net profit of Rs. 1,50,000 p.a.
Documents required for a second-hand car loan
The documents required for a second-hand car loan with Muthoot Capital are:
A valid evidence of identity:
For identity proof, a person has to provide any of the following documents: Passport, Voter Id card or Adhaar card, Driving license or PAN card.
A valid proof of income:
For proof of income, applicants need to submit ITR or form 16 or a payslip or salary credit in the bank statement.
One can submit the latest land/building/house tax receipt for asset proof.
A valid evidence for address:
For address proof, individuals need to provide either Passport or Aadhaar card or voter ID card or driving license or telephone bill or electricity bill or gas connection bill or ration card, or LIC policy.
For photo proof, submit the recent passport size photo.
Why should individuals choose a second-hand car loan?
Getting a used car loan from Muthoot Capital has several perks. If one chooses used car loan finance, they can have the car of their dreams for a low monthly payment.
- The loan is simple to apply for and will be approved and disbursed quickly.
- The application process is hassle-free, and one can even submit their application online. Further, the documents required are also minimal.
- In some plans, borrowers can get up to 100% of the car’s worth. A lesser down payment allows them to put money aside for unexpected expenses.
- The repayment period is flexible, with second-hand car loans ranging from 12 to 60 months.
- With Muthoot Capital, interest rates on the used-car loans are affordable.
- Most people can get a second-hand car loan because the used car loan eligibility criteria are straightforward.
- A person can borrow between Rs. 50,000 and Rs. 10 lakhs. Moreover, prepaying the loan is possible for a small fee.
Buying a car is one of the biggest expenses that one would encounter in their life. Buying a car second-hand seems to be the affordable solution, but before a person goes ahead, they need to ensure that they check the second-hand car loan eligibility.
Some lenders may require a down payment, so borrowers need to set aside that money and figure out how much of a loan they will need to buy the used car.
Calculate the EMI and interest using several tenures and select the one that best suits their needs.
Also, borrowers need to remember that they will not be required to submit any security or collateral to obtain a second-hand car loan because their vehicle will serve as the security.