How do you get a loan for a used car?

How do you get a loan for a used car?

  • Used Car Loans

The Indian used car market is expected to grow at a CAGR of over 11% and the used car finance market, at a CAGR of 8%. This goes to show that prospective car owners are willing to go the extra mile to realise their dreams and Banks and Non-Banking Financial Companies (NBFCs) are stepping up to help.

Used car loan presents prospective buyers with the following benefits:

  • The loan amount is lower when compared to the loan amount for a new car. The used car loan calculator, therefore, will tabulate a lower monthly EMI.
  • The application process for a used car loan is simpler and requires minimum documents.
  • 100% used car finance may be available with some banks or NBFCs.

 

Eligibility criteria and documents required for TVS Credit Used Car Loan

Typically, anyone can apply for a used car loan. There are, however, some requirements that individuals who are salaried employees, are self-employed, are in a proprietorship and/or partnership firm, or private or public limited companies must meet.

Salaried

  • Age, address, ID and signature proof
  • Income document (salary slip/form 16/ITR with computation of income)
  • Bank statement OR Passbook Copy
  • Photocopy of vehicle RC book and insurance certificate
  • Pan Card

Self-Employed

  • GST certificate
  • Shop Act or business proof Underage
  • Address & ID Proof
  • Repayment track of existing or completed loan
  • TDS certificate
  • PAN Card

Proprietorship and/or Partnership Firm

  • Income document (salary slip/form 16/ITR with computation of income)
  • Photocopy of vehicle RC book and insurance certificate
  • Partnership deed with declaration for partnership firm
  • Age, address, ID, and signature proof
  • Repayment track of existing or completed loan
  • Shop Act or Business Proof
  • Bank statement OR Passbook Copy
  • PAN Card
  • TDS certificate
  • GST certificate

Private or Public Limited Companies

  • Age, address, ID, and signature proof
  • Income document (salary slip/form 16/ITR with computation of income)
  • Bank statement OR Passbook Copy
  • MOA/AOA with board resolution for private/public ltd. firm
  • PAN Card

 

Things to remember before getting a used car on loan

  • Check the car

Ensure that the car you want to purchase is in good condition and the seller is providing all the papers – registration and insurance - and correct vehicle history. TVS Credit offers loans on cars that are up to 12 years old.

  • Research used car finance

Before taking a loan, research the lender and their used car loan interest rates. TVS Credit provides used car loans that among up to 95% of the asset value.

  • Read the 'Terms & Conditions'

Terms and conditions on used car finance vary from lender to lender. It is advised to thoroughly read repayment terms and other fine print before signing the application.

You can visit TVS Credit online or offline to fill out the application form. With the form, one must submit the above documents depending on the eligibility criteria they qualify and avail a used car loan. To apply for loan click here.

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