The price of a used car is lower as compared to the price of a new one. As a result, purchasing second hand cars is a wise financial move. Furthermore, buying a used car from an individual requires you to complete the entire payment at once, with used cars finance, you don’t have to utilise all of your funds or create a budget because your loan amount is divided into equal monthly instalments.
Buying second hand cars on EMI is the best way to get the ride of your dreams home. As the title suggests, we are going to simplify the application procedure for you and fill you in with all the details that will help you obtain a used car loan instantly.
What Is a Second Hand Car Loan Emi?
EMI stands for equated monthly instalments, which is the amount that you must pay to your lender every month till the end of your loan tenure against the borrowed amount. When you apply for second hand cars on EMI your lender divides your loan amount into equal monthly instalments which is a sum of interest and the principal amount. Many people have benefited from EMI since you do not have to drain your savings or borrow money from someone to pay off the automobile price at the time of purchase.
What Are the Eligibility Criteria for a Used Car Loan?
To apply for a used car loan, first, you need to be eligible for it. The eligibility criteria for a second-hand car loan are as follows:
- You must be a resident of India.
- Your age must be above 18.
- If you are a salaried employee, you must have been employed for at least one year.
- For entrepreneurs, they should have been in business for at least one year.
What Is the Necessary Documentation for a Second-Hand Car Loan?
When applying to get used cars finance, your lender will ask you for a few documents to verify your credentials. Check out the list of the necessary documents below:
- Application Form
- The vehicle’s registration certificate.
- For identity evidence, use an NREGA Job Card/ Aadhaar Card/ Passport/ Government of India issued picture ID/ Driving license/ Voters ID.
- Proof of employment for a salaried individual: Appointment Letter/ Salary Slip Joining Date/ ITR/ Form 16/ Experience Certificate/Relieving Certificate
- As evidence of business, use a registered lease agreement/utility bill/ VAT/ Excise/ Service Tax Registration/Establishment and Shop Registration Certificate/MSME or SSI Registration Certificate.
- For signature verification, a copy of your passport/bank verification/PAN card is required.
- For income evidence, including the most recent salary slips/bank statement/form 16/ITR/audited balance sheet/profit and loss statement.
- Aadhaar Card/ Driving License/ Lease or Rent Agreement/ Voter ID Card/ Utility Bill/ Letter from National Population Register with Name and Address Details as Address Proof
- Submit a Passport/ License/ Birth Driver’s Certificate/ PAN Card as evidence of age.
- Proof of occupation for self-employed individuals: Certificate of Registration for an Establishment and a Shop/SSI or MSME Registration Certificate/Sales Tax/VAT Registration
How to Get Second Hand Cars on EMI?
To get second hand cars on EMI you have two ways. One is by visiting the local branch of the lender or by applying online. The latter option is better as you can complete the procedure while sitting at home. Follow the steps given below to apply for a second hand car loan online:
- Visit the website of your lender.
- Take a look at the qualifications. (eligibility criteria)
- Keep a digital copy of all pertinent papers on hand for submission when required.
- Utilize our free EMI calculator to get a sense of the EMI you would be required to pay. Enter the loan details you need, including the amount, interest rate, and term. You will be informed of the required EMI.
- Choosing “Apply for a Loan.”
- You’ll be sent to the application form page, where you must provide all the necessary details including your name, phone number, email address, city, state, and other information.
- Click the Apply Now button to finish the procedure.
- The loan money will soon get deposited into your bank account after executives have reviewed your loan application.
Now that you have gained all the information regarding used cars finance and how you can apply for second hand cars on EMI we would leave you to it. If you have any questions, you may go over all of the information again to ensure that you don’t make any mistakes while applying for a used auto loan.