You will find various banking and non-banking financial companies that offer you pre-owned car loans to help you buy the car of your choice. The terms and conditions of such loans vary from one lender to another. However, if you want to get a good quick loan to purchase a car, you should choose a second-hand car rather than a new one. Whenever you buy a new car, it starts experiencing depreciation. With the passing days, the car continues to lose its percentage of value initially. Therefore, the cost of buying any used car is somehow lower than that of a new one.
You must understand that choosing a pre-owned car comes with many difficulties. One needs to be very cautious while making decisions about getting a second-hand car. This article describes some of the important steps to follow for getting pre owned car loans in India.
Visit the lender
You need to visit various lenders and apply for pre-owned car loans. Make sure that you choose the one which offers better rates of interest and a larger loan amount.
You need to discuss with the lender about certain details of the loan. Also, know the amount of the loan you are eligible for, along with the processing fees and interest rate. Everybody should calculate the equated monthly installment before taking up any loan amount. You should know about the prepayment charges, and if you can foreclose the loan.
Submit necessary documents
Submitting your documents happens to be one of the important parts of getting the pre-approved loan. To apply for personal loan quickly, you have to provide the necessary documents to the lender.
- Photo identification proof
- Age proof including Aadhaar card, PAN card, or driving license
- Residence proof that consists of voter ID card, postpaid utility bill, valid passport
- Application form of the loan along with 3 to 5 passport-sized photographs
- If the borrower is salaried, then the last three months slip along with the income tax return file
- In the case of a self-employed individual, the idea documents of the past two years and business proof.
Even if you keep all these documents handy, the lender can still reject your loan approval. It happens because of the poor credit score of the borrower. If the lender is not satisfied with the documents, the lender can ask for a field investigation report. If the report comes negative, the lender can reject the loan application.
Things to know before getting the approval of the loan amount
Before you go for a pre-owned car loans, you should check all the original documents of the car. Apart from that, you need to follow these pointers below.
- Make sure that you check whether there are any pending e-challans
- You should negotiate with the seller before buying an interstate car. You should also so try to arrange for NOC
- If you are buying it from any used car dealer, you should insist on getting the GST invoice.
Getting pre-owned car loans from any lender is very easy, but you must look at the features of the loan along with the interest rate before indulging in any loan. If you have a good credit profile, it would be very easy to get approval for the loan amount. Once the lender approves the amount, the seller receives the same in their bank account within some hours. Along with that, you can also complete the down payment and take the possession of your new pre-owned car.