Pre Owned Car Loan

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What is Pre Owned Car Loan?

A pre owned car is simply a car which had an owner already in the past. Hence when you purchase such a car, you become the second owner of that car. In India, the term for such vehicles is “Second Hand Car”. There is a booming market for pre owned cars that are looking for new owners. Earlier the market for pre owned cars was not great because of the common notion among the masses that second hand cars are equal to bad cars. They would be more worried regarding the condition of the car and hence would prefer purchasing a new one. Today, the situation has changed. Banks and NBFCs in the market are providing pre owned car loans at attractive interest rates and deals on more than 100+ car models. All you need to do is choose the car of your choice and then be eligible as per the bank.

Why you should take a Pre Owned Car Loan?

There are multiple reasons why a pre owned vehicle will benefit the user more than a new car. These benefits are mentioned below;

High Cost savings for you

When you want to purchase a pre owned car, the cost associated with it is very low when you compare it with a new car. That also means that you will save extra money not only on value of car but also on interest money.

Less Tension for You

Purchasing a new car brings in lots of worries. Taking a new car loan also is a tedious process. Hence when the concept of pre owned car loan was introduced, Banks and NBFCs made it as simple as possible so the customer has less hassle while applying for a car loan.

Pre Owned Cars have many benefits

The first benefit of a pre owned car loan is the cost. You don’t need to worry about the on road price as once the car ownership changes hands then the rate of the car automatically reduces. Next benefit is with respect to depreciation. When a new car depreciates, the value reduces quickly. When a pre owned car depreciates, the value doesn’t reduce quickly.

Eligibility Criteria for Pre owned Car Loans:

If you want to apply for a pre owned car loan anywhere in India, you would need to be eligible as per the Bank. For this to happen, the Banks have set their own criteria. The main purpose of checking eligibility is for the bank to understand if they can trust you. Yes, your credit reliability will be calculated which helps the Bank in understanding if you will pay back the loan in time without defaulting anytime during the loan tenure. Below mentioned is a general list which you can use as reference before applying for a pre owned car loan.

  • This is a generic list of eligibility you need to fulfill in order to get a Pre owned Car Loan.
  • 1. Only Indian citizens are applicable to apply for pre owned car loans.
  • 2. As an individual, your minimum age must be not below 21 years and not older than 65 years.
  • 3. The applicant must have a good income and savings history.

Usually Banks divide the list of applicants in two parts i.e. salaried working class and self employed professionals.

  • Salaried working class applicant:
  • An individual can be either a salaried-class person working in public or private class undertaking.
  • The person’s net income with or without their co-applicant must not be lesser than 3 lakh rupees per annum if they want to apply for a used car loan. Hence you can bring in a co-applicant and reduce the stress on yourself.
  • The person must have minimum 2 years of working experience and at least 1 year of experience in the current job.
  • Self employed professionals:
  • A self-employed individual like doctor, chartered accountants, traders etc or people employed in the agriculture sector or dependent industries.
  • The applicant should have been in the business or their current profession for the past 2-3 years at least.
  • If the person is a self employed professional or belongs to agriculture or dependent industries, then their net income with or without their co-applicant must not be lesser than 4 lakh rupees per annum if they want to apply for a used car loan.
  • The applicant must be paying regular tax income returns.

Documents required while applying for a Pre owned Car Loan:

When you want a pre owned car loan to be approved, there are few documents which you need to provide to the Bank. They will analyze these documents carefully and will provide you with your ideal rate of interest and loan amount. These documents are as follows;

  • KYC details – This will include documents related to Age, Residence, your identity and Signature related proof like Passport, Voter’s ID and PAN Card.
  • Income Proof – This will include your Salary slips from the past 6 months and Form 16 for salaried people OR ITR with income computation for self employed individuals.
  • Banking proof – You would need banking statements since the past 6 months.
  • Passport sized photographs - Minimum 2-3 would be required for loan application.

Why Choose Ruloans To Apply For Pre Owned Car Loan

Ruloans has been in the loan industry over a decade in which we have witnessed a lot of trends that run in the market. We have seen the rise of the pre owned car loan segment and understand customer’s needs towards it very effectively. Just to make the job easy for the customer, we developed a web portal which helps customers save time. All they need to do is fill in few basic details and mention their requirements. Our web portal will provide them with deals from all of our major banks. This will help the customer in checking all deals in one page. You can save a lot of your time in research and choose the deal of your choice for your pre owned car loan.

Hassle free process

We also aim at providing services which are tailor made towards the customer so they go through very less hassle and get the loan process sorted in a simple way.

Benefits of applying with us

We provide you with the best deals and ensure that you always borrow right.

Compare your loan options

On our web portal, you can compare different deals provided by Banks and NBFCs all in one page. There’s a lot of comparing to be done and through our page, you can choose the best option.

Free expert guidance and advice

With years of experience in the loan industry we have experts who can help you with the right advice. And the best part is that we do not charge our customers any money for this.

Privacy policy

Today, privacy in the digital world is of utmost importance. Hence keeping this in mind, we ensure that your documents are always with us or with the bank of your choice.

How you can Calculate Pre Owned Car Loan EMI via Ruloans ?

When you want a pre owned car loan to be approved, there are few documents which you need to provide to the Bank. They will analyze these documents carefully and will provide you with your ideal rate of interest and loan amount. These documents are as follows;

  • All you need to do is follow these simple steps;
  • Step 1: Visit
  • Step 2:Click on the ‘Used Car Loan Calculator’ tab.
  • Step 3:Fill in the basic requirements like “Loan amount” and “tenure” along with “interest rate” which you desire.
  • Step 4:After filling in all the details, click on the ‘Calculate’ button which will complete the process.
  • Step 5:Once the calculation is complete, you will see the total EMI, Total interest amount and also the final loan amount (EMI + Interest). Keep trying different combinations until you find the right combination which will help you pay off your loan without affecting your expenses.
  • How to Apply For a Pre Owned Car Loan Via Ruloans?

    When you apply for a pre owned car loan via Ruloans, we have created a set process through which the loan process can be attained in a smooth manner. Following these steps will help you get the loan smoothly.

    • If you want to apply for a Pre Owned Car Loan via Ruloans, all you need to do is follow some simple steps;
    • Step 1: Kindly visit Ruloans web portal. Once you are on the page, click on ‘Pre Owned Car Loan’ tab. This tab can be found under the “Car Loan” page.
    • Step 2:Next you must fill some basic information post which you can use our “Pre Owned Car Loan calculator”. Try different combinations in order to find the right choice for you.
    • Step 3:By using the Pre Owned Car Loan calculator and trying different combinations, you can find your ideal rate of interest and EMI which you can pay. Once you have decided your ideal EMI and interest rate, apply online for a pre owned car loan and check deals of our major partnered banks that fit as per your eligibility criteria.
    • Step 4:You can shortlist your favorite deal and bank from where you want to get the best pre owned car loan.
    • Step 5:Once your decision is made, apply for the pre owned car loan from the bank of your choice and we will send your form to that Bank for processing.

    Frequently Ask Questions

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