The used car market is booming in India. Easy availability of pre-owned car loans has accelerated this boom. Financial institutions make it quite convenient for people to easily take a loan to procure the second-hand car you desire. The application process is now available online along with complete information about the loan. You can also use the EMI calculator to commute the repayment amount. If you still have questionscr about the second-hand car loan, here is a list of 5 FAQs.
- I may shift my residence after taking the pre-owned car loan. Can I change the contact details after taking the loan?
You can change your address and phone number as mentioned in the loan. Simply, contact your loan provider as soon as possible. The lender may ask you to submit self-attested copies of KYC documents like address and ID proof. The documents will be mentioned in the eligibility and documentation criteria. You can send the aforementioned documents to the lender’s email ID.
- Is it true that getting a pre-owned car loan online is more beneficial?
Financial institutions offer quite a lot of discounts and special offers to online loan takers. Keep an eye out for these offers that are provided from time to time, during festivals, new seasons, new launches, etc.
- Can I foreclose the loan?
It is possible to foreclose the loan before the repayment tenure, however, please check with the lender regarding any penalties for doing so. Ideally, if you think you may be in a situation to foreclose the loan amount, then before taking the loan, check the foreclosure terms in the second-hand car loan agreement.
- I am 18, can I apply for a pre-owned car loan?
You will have to check this with individual financial institution. Some may allow Indian nationals above 18 years of age if they are self-employed or salaried for a minimum period of time. Other lenders only offer this loan once you turn 21, so check the eligibility criteria before applying for this loan.
- Can the monthly instalments be paid online?
Of course, you can. You will have to select the online EMI payment option that the lender must have provided during the application process.
- Do I need to have collateral for the loan approval?
No, you do not need collateral to apply for a second-hand car loan. All you need to do is fulfil the eligibility criteria of the lender and also ensure that the documentation is all in order. This will ensure that your application process will be approved seamlessly.
- Is good credit score important for getting the loan?
Lenders may or may not consider your credit score when approving the loan. This makes it easier for anyone to apply for this loan. However, having a good credit score is extremely beneficial as it gives the lender a positive impression about you as a borrower.
Pre-owned car loan is the best way to finance that second-hand car that you have been eyeing. The aforementioned frequently asked questions can help solve your dilemmas regarding the loan. So, don’t hesitate take that loan and purchase your car.
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