Can I Get a Loan for Second Hand Car or Two Wheeler? Know Here

Muthoot Capital Services Ltd. offer to you the best deals for financing used cars or two wheeler with hassle-free procedures, low-interest rates and faster approval of loans. We can offer a loan of up to 95% of the IDV or Insurance Declared Value as a used car loan.

If you want to buy a car and the funds are low, then second hand car can be a budget-friendly option. The market for second-hand cars in India has grown considerably in the last few years. As a result, it is no longer difficult to come across pre-owned cars, which are not only budget-friendly, but also in great condition.

Apart from this, some of the top lenders in India now also give loans to buy second hand cars. Used car loan works like a normal car loan that you take to buy a new car. Some important details about loans for pre-owned cars or two wheeler are as follows-

1. How much loan can you use? What is the loan term?Depending on your eligibility and other factors, a lender may offer up to 95% of a 4-wheeler’s valuation as second hand car finance. Most lenders offer such loans for up to 5 years.You can go for a short tenure to repay the loan soon. But shorter tenure will increase the EMI amount. Therefore, make sure that you choose a loan amount and tenure, which you can easily bear the EMI. You can use our used car loan emi calculator tool for your easiness.

1. What are the eligibility requirements for a used car loan?Each lender has its own eligibility criteria based on which they approve or reject loan applications. Requirements typically revolve around your monthly income, occupation, work experience, credit score and age.You can check the eligibility requirements of a lender by visiting their official website. Most lenders also have eligibility calculators online for increased convenience.
2. What documents are required to apply for a used car loan or Two Wheeler Loan?Like eligibility requirements, documentation requirements also vary. However, most lenders will require you to submit at least your ID proof, address proof and income proof.You have to submit these documents along with online or offline loan application form.

4. How to apply for a used car or Two Wheeler loan online?Most lenders now allow you to apply for used car finance or two wheeler loans online. For online application, you have to fill the loan application form and submit it along with the required documents.After submission of the documents, the lender will then start the approval process. If the loan is approved, the lender will distribute the loan amount that you can use to buy a used car of your choice.

5. What are the additional fees when applying for a used car loan?In addition to the second-hand car loan interest rate, you should also check the lender’s additional fees before applying for a loan. Most banks require you to pay a few different fees such as loan processing fee, documentation fee, CIBIL report fee and registration certificate collection fee.

There are also charges for prepayment, check bounce, amortization schedule, duplicate NOC and loan cancellation. Make sure that you check these charges thoroughly before signing loan documents.

Buying a Pre Owned Car with a Used Car LoanBuying a used car is already a budget-friendly option and the loan only makes it more favorable for buyers. With an attractive used car loan interest rate, flexible loan tenure, online loan application and up to 95% loan value of the car, you are sure to experience great convenience and affordability when purchasing a pre-owned car. Select a lender to enjoy the amazing benefits of taking a used car loan.

Rohit Rawat is writing finance blog for many brand like Muthoot Capital, Muthoot Fincorp, and having 10 years of solid experience. You can avail second hand car finance to buy your dream bike.