I am a salaried individual with not so handsome income. I need a loan to buy a second hand car. Would I be eligible?
Used car loans just like new car loans are available to both salaried and self employed individuals. Depending on the bank and NBFC, there are different loan eligibility criteria. Generally for salaried individuals seeking a used car loan need to have an annual income of Rs. 1, 00,000 with a minimum 1 year of work experience with the current employer and over 2 years of total work experience. Age proof, along with KYC norms, address proof, income proof and salary slip along with form 16 are essential documents required to avail a pre used car loan.
You will be eligible to apply for a Used Car Loan, if you fulfil the following criteria:
You are aged between 21 to 65 years
You are a salaried individual with a minimum net annual income of Rs. 3,00,000. (You can include the income of a co-applicant as well.)
You are a self-employed individual, with a net annual income not less than Rs. 4,00,000. (This includes the income of a co-applicant.)
You are an agriculturist, with a minimum annual income not less than Rs. 4,00,000 (including that of the applicant and co-applicant.)
Partnership firms, public sector undertaking, private company or people employed in the agriculture sector can also apply for a Used Car Loan.
Different banks may have different numbers for the minimum annual income of an applicant. So check with your preferred bank about their threshold for minimum income before applying.
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Second hand car loan its kind of facility provide to people who are interested in buying used cars loan or pre-owned cars loan.One of the biggest advantage of used cars is that they offer value for money, lower insurance, lesser registration charges, and at last - slow rate of depreciation. Today, as more and more people are opting or used car loan the competition has grown among financiers which has come as a benefit for buyers. There are a lot of offers and deals that one can look into before choosing their suitable financial institution.
I’m not much experience in this. But I hope you can get a loan for your second hand car. All the best!