How to Get Used Car Loan from Banks In 2022

Pre-owned car loan interest rates are affordable and come with flexible repayment tenure of up to five years. Easy access to these car loans makes them popular. Another reason is the preference for personal vehicles to commute over public transport to keep potential health risks at bay in this pandemic era. A used car purchase makes sense for first-time buyers to hone their driving skills. 

Let us elaborate on how one can get these used car loans with banks offering car finance between 60-80% of the car’s value. 

Used Car Loan Eligibility Check

Residents who are salaried or self-employed individuals can apply for used car loans with banks.

For the salaried:

• Age should be between 21 – 54 years. 
• Minimum 2 years of work experience 
• Minimum Salary of Rs. 2 lakh per annum 

For the self-employed:

• Age should be between 23 – 60 years.
• Minimum 4 years of business establishment
• Minimum annual profits of Rs.1.75 lakh

Steps to Apply for A Used Car Loan 

Step 1: Choose your car 

Choose a pre-owned car available with a reliable dealer, offline or online, or with your friends and family.

Step 2: Check Your Eligibility for Loan Amount. 

Discuss the used car loan details, such as the loan amount available for you, the applicable interest rate, your preference for loan tenure, EMIs, and processing fee. While discussing the loan with the bank about prepayment charges, you should know the prepayment or foreclosure charges.

Step 3: Access the used-car loan application.

You can visit the bank’s website to apply online or visit the bank to make an application. Complete the loan application in minutes. You need to enter the car model, age, price, and income details. Keep basic information handy. 

Step 4: Submit the Required documents 

Your bank may need a few documents such as a car valuation report, identity proof, address proof, and income documents to process your application. Upload scanned copies of these required documents.

The bank completes the car evaluation process before sanctioning a used car loan. Based on its evaluation, it will approve a loan. This is the whole process of financing a used car.

Apply for A Used Car Loan from Muthootcap.com

If you are looking for more favourable terms, you can apply for a pre-owned car loan from Muthoot Capital with easy documentation for immediate approval and quick loan disbursal for your car purchase. 

• With Muthoot Capital, individuals can own their dream car against an affordable used car loan online at an interest rate of as low as 8.50%.
• Easy eligibility for salaried/self-employed person/agriculturist. 
• Age should be between 21- 65 years. 
• The minimum salary should be 1,80,000 per annum, or the net annual profit should be Rs. 1,50,000.
• Get a used car loan of up to 95% of your car’s value. Get a loan amount between Rs. 50,000 to 10 Lakhs. 

You can get instant loan approval after car evaluation within 20 minutes. Get your pre-owned car loan with the experience of simple processing, speedier loan acceptance, and utmost freedom with the flexibility of making small affordable monthly payments. You can use their used car loan EMI calculator to know the affordability of your EMI. Call us at 1800 106 1212 to speak to a Muthoot Capital used car loan representative today.