It would be surprising, when you get to know that you can get a loan to buy a second hand car these days. Yes, you can get the funds to buy a pre-owned car by availing a loan scheme. However, there are few things one needs to check before they “Apply For Used Car Loan“ such as lender’s will to provide you liquid funds, eligibility criteria to get approved for lender, condition of the used car etc. Here, we have listed down few things to get prepared before getting this loan.

Visit a lender: Do a proper research either online or offline to find a best lender who will get you a better rate of interest before applying for a second hand car loan. You can check the number of deals offered by various lenders at online marketplace for used car loan. There are numerous banks and NBFCs who offer you loan to purchase a pre-owned car at the rate of interest between 9.0-10.5%. So, choose a suitable lender and visit him/her to get a loan.

Finalize a loan scheme: It is good to discuss all the details regarding used car loan such as loan amount you can secure, rate of interest, loan tenure, monthly installment as well as other hidden charges. In case, if you have thoughts about foreclosure in part or full, you should also ask the specific lending institution about any prepayment charges for the loan.

Know the difference: One of the most important thing one should understand that used car loans always have lower LTV ratio and higher rates than new car loans. The amount of pre-owned car loan totally depends upon the condition of car, sometimes the loan quantum is lower than the price quoted by the car owner. In addition to that, the tenure of loan also depends upon the age of the used car. If you have enough savings to pay as a down payment you can easily secure a loan with lower LTV ratio.

Documentation: If you want to process a used car loan application, you have to upload the required documents if you “Apply For Used Car Loan Online“ and you have to submit them at the branch in case of offline application. The list of the documents you need to provide includes ID proof with age proof, latest salary slips or ITR documents of last 2 years, if businessperson then you also has to give the business proof.

Possession of the car: Once your loan amount gets approved by the lender, the seller of the used car will receive the loan money in his/her bank account within 1-2 business days. In the meantime, you also have to pay the down payment to the owner of the car to take the possession of your pre-owned car and to set on the wheels.

ShubhBank is a financial platform that can arrange funds for you to buy a pre-owned car with best possible interest rate and terms for used car loan with attractive offers.