It is important to know about the eligibility criteria and necessary paperwork that play a pivotal role in your used car loan application. Here's a quick look at the criteria you need to know about to enjoy a smooth process.
The second-hand car loan eligibility criteria may vary among lenders. Here are some common requirements:
Age: 18-80 years
CIBIL score: 720 or more
Citizenship: Indian
Employment type: Self-employed or salaried
Minimum work experience: 1 year
- Minimum monthly income: ₹20,000 for salaried applicants
Here is a list of documents you are typically asked to furnish when applying for used car finance:
KYC Documents: Any one of the following
Aadhaar card
PAN card
Passport
Voter ID
Employee ID card
ITR proof of last 2 years (if self-employed)
Vehicle registration certificate
Vehicle insurance copy
Salary slip of the last 2 months
Bank account statements of the last 3 months
FAQs
Who is eligible for a used vehicle loan?
Individuals aged between 18-80 years, holding Indian citizenship, with a CIBIL score of 720 or more, are usually eligible for this loan. Both self-employed and salaried applicants can apply.
Which document is important for a second-hand car loan?
Important documents for a second-hand vehicle loan include KYC documents, employee ID cards, income proof, and car-related documents.
What is the minimum salary required when applying for second-hand car finance?
For salaried applicants, a minimum monthly income of ₹20,000 is typically required when applying for second-hand car finance.
Can I get a pre-owned car loan without income proof?
Generally, you are required to submit income proofs when applying for a pre-owned car loan. Reach out to your lender and discuss alternatives in case you do not have the requested income proof.
