Best Banks Providing Loan To Purchase Second Hand And Used Cars

Second Hand Car Loan, How to Apply, Banks, Interest Rates, Branch Locator

A used automobile loan is useful for purchasing an excellent second-hand car. Used automobile loans are available at low-interest rates. It can also be repaid over up to seven years. Depending on the lender, you might get a loan for up to 100% of the car's worth.

Nowadays, many banks and non-bank financial institutions (NBFCs) offer loans for used automobiles. A used automobile loan is available to both self-employed persons and salaried employees.

Key Points to Consider when Applying for a Used Car Loan

Some of the most significant factors to consider while getting a used automobile loan are below:

When compared to a new automobile loan, the interest rates on a used car loan are greater.
If the automobile is older than three years, certain NBFCs and banks will not provide you with a loan.
The loan amount will not consist of the cost of insurance.

How to Get a Used Car Loan Without Going Online?

Pay a visit to the bank location where you want to get a loan.
Fill out the application form completely.
Check your eligibility for the loan by submitting the required papers.
To process the loan, talk to the lender about the processing fee, interest rates, and other details.

Eligibility Criteria for Second Hand Car Loan

Check the eligibility conditions to apply for Second Hand Car loan below:

Salaried Employees

Age range: 21 to 65 years old.
Monthly income of at least Rs.15,000
Income Status: You must have worked for the same company for at least a year.

Individuals

Age range: 25 to 65 years old.
Income: A profit of at least Rs.1.5 lakh per year is required.
Income Status: Must have worked in the same industry for at least three years.

Documents Required For Second Hand Car Loan

The below-mentioned documents must be submitted for loan application:

Application form of loan
Photograph (Passport Sized)
Car Valuation (report)

ID Proof:

Driving License
Passport
Aadhaar card
PAN Card
Voter ID

Address Proof:

Electricity Bill
Voter Identification card
LIC Policy
Aadhaar Card
Driving License
Passport
Ration Card

Proof of Income:

As proof of income you need the following papers must be submitted:
P & L Accounts
Salary Sleep
Financial Balance statement
Form 16
Statements of account

Best Banks for Used Car Loan

Sr No	Bank Name	Interest Rate **	Branches in India
1	Bajaj Finenserve	13%	Bajaj Finenserve Branch Locator
2	Bank of Maharastra	9.95%	Bank of Maharastra Branch Locator
3	Canara Bank	7.30%	Canara Bank Branch Locator
4	Capital First	13.50% to 14.50%	Capital FIrst Branch Locator
5	Dhanlaxmi Bank Ltd	9.85% to 10.10%	Dhanlaxmi Bank Ltd Branch Locator
6	ICICI Bank Ltd	12%	ICICI Bank Ltd Branch Locator
7	Indian Bank	10.85%	Indian Bank Branch Locator
8	Indian Overseas Bank	8.55% to 9.55%	Indian Overseas Bank Branch Locator
9	Jammu & Kashmir Bank	10.70%	Jammu & Kashmir Bank Branch Locator
10	Laxmi Vilas	13.05%	Laxmi Vilas Branch Locator
11	Magma	12% to 16%	Magma Branch Locator
12	Mahindra Finance	14%	Mahindra Finance Branch Locator
13	Muthoot Fincorp	8.99%	Muthoot Fincorp Branch Locator
14	Nainital Bank	10.25 %	Nainital Bank Branch Locator
15	Oriental Bank Of Commerce	12.15%	Oriental Bank Of Commerce Branch Locator
16	Punjab & Sind bank	9.85%	Punjab & Sind bank Branch Locator
17	Saraswat Bank	7.00%	Saraswat Bank Branch Locator
18	South Indian Bank	13.65%	South Indian Bank Branch Locator
19	State Bank Of India	8.70%	State Bank Of India Branch Locator
20	Sundaram Finance	12.00% to 14.00%	Sundaram Finance Branch Locator
21	Tamilnad Mercantile Bank	11.65% and 14.95%	Tamilnad Mercantile Bank Branch Locator
22	TATA Capital	15%	TATA Capital Branch Locator
23	UCO Bank	8.80%	UCO Bank Branch Locator
24	Union Bank Of India	10.40%	Union Bank Of India Branch Locator

** Interest rates are calculated for Rs 7 Lakh for 3-Year Tenure

Benefits of Second-hand car loan

The following are some primary advantages of taking out a personal loan for a used car:

Up to 60-month loan payback term
Instant, hassle-free approval
Loan money deposited within 24 hours of approval
Large loan amount
Few papers are necessary for loan approval
No collateral is necessary and more
As a result, taking out a personal loan to buy a used automobile might be a great credit alternative.
When compared to a new automobile loan, the loan amount available may be smaller. As a result, your EMIs will be minimal every month.
The repayment period is long. Certain banks and non-bank financial companies (NBFC) provide up to 100 percent funding.
The process of loan application is very simple and maybe available entirely online.
When compared to a new vehicle, the insurance prices & depreciation rates are cheaper.
Only the bare minimum of documents must be presented.
Flexible repayment arrangements are available from several banks and NBFC.

Important things to be Consider

The following are some of the most significant items to consider when purchasing a secondhand car:

Review the paperwork completely: Check to see if the car's engine & chassis numbers match those on the copies. It is critical to thoroughly check the insurance papers and the registration certificate. It's also a good idea to see if the automobile has been in any accidents.
Test the car: Make sure the vehicle is completely checked. You can hire a mechanic to inspect the vehicle. You can haggle the price if there are any faults with the automobile. Drive the car in a less congested area to check any kind of vibrations.
Car history: Before purchasing a vehicle, it is important to investigate its history. Checking the vehicle history might reveal whether the vehicle has been in any accidents. It will also reveal if it has had any servicing issues. Various facts about the vehicle may be available on the internet.
Registration certificate transfer: After you've bought the automobile, make sure of the Registration Certificate (RC). A NOC is also necessary if you buy the automobile on a loan from the previous owner. A NOC is necessary if the vehicle is registered in another state.
Transfer the Insurance: You must immediately transfer the car insurance policy to your name. Even though the RC is in your name, the insurance policy is worthless if it is in the name of the previous owner.
Service the vehicle: It is critical to get the vehicle serviced before you use it. Before using the automobile for the first time, change the fluids and clean them.