Dreaming of Your Perfect Car? Get Financing Now with Minimal Documentation

Buying a car is not only a financial but also an emotional decision for manyIn that case, buying a second-hand or pre-owned car is a smart move. But it will still require a substantial investment. A Car Loan for used cars is what you may need. It can help you purchase your desired car quickly without disrupting your budget or exhausting your savings. A pre-owned Car Loan provides the required funding to buy the car. The vehicle becomes the collateral since it is a secured loan, meaning you don't need to pledge an asset as security. The part is that you can repay the loan quickly with convenient monthly installments as per your repayment capacity.

What is a Used Car Loan?

A Used Car Loan, or Second-Hand Car Loan, is a type of funding option financial institutions offer to individuals who need money to buy a used car.

Factors like the car’s condition, usage, and market value determine the loan amount and loan-to-value ratio you can avail. The lenders also check your current income and bank balance to determine your Second-Hand Car Loan eligibility and repayment capacity. They provide a loan offer containing the approved loan amount, interest rate, and repayment terms. If you agree, they disburse the loan, which you have to repay with interest within the selected repayment tenure.

Benefits of a Used Car Loan

By securing a Car Loan for used cars, you can access the funds required to bring your dream car home. Let’s look at the benefits of borrowing a Second-Hand Car Loan:

• Up to 90% Funding: You can finance up to 90% of the car’s market value with a Used Car Loan.  A high LTV ratio makes it easier to purchase the vehicle without upfront payment.
• Attractive Interest Rates: The attractive interest rates of Used Car Loans ensure the loan EMIs are affordable and easily manageable. With a low debt burden, you can plan your finances efficiently without worrying about high-interest payments.
• Minimal Documentation: The online application process requires minimal documentation, making the loan easy and quick to obtain. You can submit the necessary documents digitally, reducing paperwork and saving time.
• Flexible Repayment Tenure: Depending on your financial situation, you can choose a repayment tenure of up to 60 months. This allows you to spread out the loan cost conveniently, ensuring manageable EMIs.
• Customised EMI Plans: You can choose an EMI plan that fits your affordability. Opt for a longer tenure to reduce the EMI amount, or go for a shorter tenure to repay the loan quickly. Customised EMI plans give you higher financial flexibility suitable for your income and existing obligations.
• Swift Approval and Disbursal: The streamlined online application process ensures swift loan approval and fund disbursal. It brings you closer to your dream car while you spend less time waiting for the required funds.

Eligibility Criteria to Apply for a Used Car Loan

You must fulfil the lender’s eligibility criteria to get loan approval. At Hero FinCorp, the eligibility criteria are as follows:

• Citizenship: Indian citizens only
• Occupation: Both salaried and self-employed individuals
• Age: 18 to 60 years for salaried and 18 to 65 years for self-employed individuals
• Work Experience: At least one year for both salaried and self-employed applicants
• Monthly Income: No specific minimum monthly requirement

Besides these, a few other factors impact your Second Hand Car Loan eligibility, including the following:

• Credit History: Maintain a decent credit score to demonstrate your credit management skills.
• Car’s Condition: The physical and mechanical condition of the vehicle indicates its resale value.
• Income: Hero FinCorp has no minimum requirements for Used Car Loans, but they still prefer applicants with stable income sources.
• Debt-to-income Ratio: Maintain a low debt-to-income (DTI) ratio to obtain an easy pre-owned Car Loan.

Documents Required for a Used Car Loan

The documentation requirements vary for salaried and self-employed individuals. At Hero FinCorp, they are as follows:

• Duly filled application form
• Car's registration certificate
• Address Proof: Aadhar Card, Driving License, Voter ID Card, Utility Bill, Rent or Lease Agreement, a letter issued by the National Population Register containing the applicant's Name & Address Details
• Age Proof: Birth Certificate, PAN Card, Driving Licence, Passport
• Signature Verification Proof: Banker's Verification, PAN Card, Passport

For Salaried Individuals:

• Identity Proof: Aadhar Card, Voter ID Card, Driving License, Passport, Photo ID Card issued by GOI, Job Card issued by NREGA
• Job Proof: Form 16, ITR, Appointment Letter, Salary Slip with Joining Date on it, Relieving Certificate, Experience certificate
• Income Proof: Latest Salary Slips, Form 16, Bank Account Statement, ITR

For Self-Employed Applicants:

• Identity Proof: Aadhaar Card, Driving License, Voter ID Card, Passport
• Business/Office Proof: VAT Registration, Sales Tax Registration, Excise Registration, Service Tax Registration Certificate, SSI or MSME Registration Certificate, Shop & Establishment Registration Certificate
• Occupation Proof: VAT, Sales Tax Registration, SSI or MSME Registration Certificate, Shop & Establishment Registration Certificate
• Income Proof: Profit & Loss Statement, Recent ITRs, Audited Balance Sheet, Current Account Statement

Stepwise Process to Apply for a Used Car Loan at Hero FinCorp

Here is the stepwise process to apply for a Car Loan for used cars online:

• Visit the Hero FinCorp website and click 'Used Car Loan’ from the ‘Products’ option.
• Calculate the EMIs using an online EMI calculator.
• Under the ‘Apply for a Loan’ section, provide details like your name, mobile number, email address, state, and city. Also, enter your business or company name.
• Click ‘Apply Now’.
• Once approved, you will get the loan amount directly into your bank account.

The Car Loan for used cars simplifies your journey to owning your dream four-wheeler. With a loan amount of Rs 50,000 to Rs 50 Lakh, you can finance up to 90% of the car’s on-road price. The lender complements it by enticing benefits like competitive interest rates, flexible repayment terms, minimal documentation, swift approval, and quick disbursal.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.