• Pre-owned Car Finance

    You can avail car finance to purchase a pre-owned car at interest rates ranging between 9.5% and 17%. The repayment tenure on pre-owned car loans can go up to 7 years and funding of up to 100% of the car’s valuation can be availed. When opting for pre-owned car finance, ensure that the used car you wish to purchase is not more than 5 years old.

    Pre-Owned Car Finance Interest Rates & Processing Fees

    Name of the Bank Interest Rate (p.a.) Processing Fees
    State Bank of India 11.00% to 12.00% Rs.1,000 to Rs.1,500
    ICICI Bank 14.25% 2% of the loan amount
    HDFC Bank 13.75% to 16% Rs.2,500 to Rs.5,000
    Axis Bank 14.80% to 16.80% 1% of the loan amount
    United Bank of India 9.80% Rs.600 to Rs.11,800
    Indiabulls Dhani 11.99% onwards Up to 5% of the loan amount

    Pre-Owned Car Finance – Features

    • If you have always wanted to own a luxury car but haven’t been able to afford it, pre-owned car finance can make it possible.
    • You can avail up to 90% of the car’s valuation as pre-owned car loan.
    • You can enjoy flexible repayment tenures ranging between 1 year and 5 years when you avail pre-owned car finance.
    • The application process for pre-owned car finance is hassle-free and is quickly approved.
    • Some lenders offer complete transfer support by partnering with used car dealers across India.
    • Many pre-owned car finance lenders also offer buying assistance.

    Eligibility Criteria for Pre-Owned Car Finance

    The eligibility criteria for pre-owned car finance may vary from lender to lender but the generic ones have been listed below:

    Particulars Salaried Applicants Self-employed Applicants
    Age
    • Minimum age – 21 years at the time of loan application
    • Maximum age – 60 years at the end of the loan tenure
    • Minimum age – 25 years at the time of loan application
    • Maximum age – 65 years at the end of the loan tenure
    Minimum Annual Income Rs.2.5 lakh Turnover of Rs.4.5 lakh
    Occupation Stability Should be continuously employed for at least 2 years out of which one year should be with the current employer Should be in the same line of business for at least 3 years

    Documentation for Pre-Owned Car Finance

    To avail a pre-owned car finance, you will need to submit the below-given documents:

    Name of the Document Particulars
    Application Form Filled and duly signed
    Proof of Identity Passport, Aadhar Card, Driving License, Voter’s ID, PAN Card, etc.
    Address Proof Passport, Ration Card, Driving License, Aadhar Card, Electricity Bill, LIC Policy, Voter’s ID, etc.
    Income Proof Salary slips, Form 16, Audit sheet, Profit and Loss account, etc.
    Photograph Passport size
    Car Valuation Report

    FAQs on Pre-Owned Car Finance

    1. Can I include a co-applicant while applying for pre-owned car finance?

      2. Answer: If your income does not meet the minimum income criteria, you can include the income of a co-applicant and apply for pre-owned car finance.

    2. Is there an option of prepaying my used car loan? If yes, will I be charged any penalty?

      3. Answer: Yes, you can prepay your loan before the end of your loan tenure for which you may have to pay a penalty. The penalty charges will vary from lender to lender. However, there are some lenders who do not charge a penalty for prepaying your used car loan.

    3. Will my credit score impact my eligibility for a pre-owned car loan?

      4. Answer: A credit score of above 750 is preferred by most lenders when offering you any kind of loan, including a used car loan. If your score is below this limit, you may find it difficult to get a car loan and even if you do, you may be charged a higher interest rate.

    4. Do I need to make a down payment for buying a used car with the help of a loan?

      5. Answer: Though down payment is not a necessity as some lenders offer 100% finance, it is recommended that you make a down payment to reduce your loan liability. Making a higher down payment can also increase your chances to get a car loan at a lower interest rate.

    5. What are the ways in which I can repay my used car loan?

      6. Answer: You can repay your pre-owned car loan through electronic clearing service (ECS), auto-debit, and post-dated cheques.

     

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