Buying a used car is a cost-effective and excellent way to achieve freedom from dependence on public transportation services. Several leading banks and non-banking financial companies (NBFCs) offer loans that make it easy to purchase a pre-owned vehicle.
Features of used car loans
These loans are available on pre-owned vehicles and have several beneficial features, like:
- Funding available for different kinds of vehicles
- Minimal documentation, ensuring quick approval and disbursal
- Financial assistance for vehicles that are up to ten years old
- Customized repayment options with a tenure of up to five years
- Competitive used car loan interest rates
Applying for this type of loan involves a simple process. Here is the stepwise loan application procedure:
- Determination of eligibility
When you want to avail of a loan, you will need to check your used car loan eligibility norms. These criteria vary among lenders, but some common factors include your income, age of the vehicle, and credit score.
- Completion of the form
The next step in the used car loan application process is to complete the form. You may provide your details online via the lender’s website. Alternatively, you may visit thelender’s nearest branch to fill and submit the application form.
- Submission of the necessary documents
Lenders like Mahindra Finance require minimum documents when you apply for a pre-owned car loan. The common documents needed include:
- Address and identity proof
- Bank statement
- Income proof
- Copy of the registration certificate (RC) book
- Car insurance policy
- Market value assessment done by an authorized valuation agent
Once you submit the application form and documents, the lender will verify the information. Do not miss out on any important details. Also, do not withhold any relevant information to avoid rejection.
- Approval and disbursal
In addition to verifying the information and documents, lenders check your credit score and determine your repayment capability before sanctioning the loan application. Once the lender is satisfied with these details, theyapprove and disburse the funds within a short period.
Buying a used car is a hassle-free procedure. Mahindra Finance offers affordable used car loan rates. Visit the lender’s website and apply for used car finance now.