Your credit score is a measure of your creditworthiness and is used by banks and non-banking finance companies to verify your ability to repay the loan you want. A good credit score can help you avail a better deal on your loan, and the same is true when you are looking to avail financing to buy a second-hand vehicle.
To check your CIBIL score for free, click here.
Use your credit score to your advantage
Here’s how you can be rewarded for having a good credit score:
Getting a personal loan for buying a second-hand car often involves many formalities. However, if you have a good CIBIL score for a personal loan, you might not have to go through detailed inquiries or submit numerous documents. You could get faster and smoother approvals because of your credibility. Bajaj Finserv offers instant approval on a personal loan for used cars.
Additional Read: How to apply for a personal loan for used cars online
Lower interest rates
Usually, a credit score of 750 or above is considered good by lenders. The higher your score, the better your bargaining power. Lenders tend to offer attractive interest rates for those who have favourable credit scores.
Higher loan amount
A good credit score gives assurance to the lender about your repaying capacity. Lenders are willing to offer a higher loan amount to individuals with excellent scores.
Better terms and conditions
If your credit score is good, you are in a better position to negotiate with your lender. You may receive flexibility in terms of repayment. Lenders might also waive off processing and other fees for credible borrowers.
Factors that affect your application for a personal loan to buy a used car
The loan amount
The loan amount you get varies across lenders. Bajaj Finserv offers personal loans of up to Rs. 25 lakh that can be used for anything you need, including buying a second-hand vehicle.
Additional Read: How a personal loan can help you deal with a liquidity crisis
Your occupation plays a vital role while borrowing money for a used car. To be eligible for a used car loan, you must be a salaried employee of a reputable organisation or a self-employed individual with sufficient income.
Being employed is not enough. To avail of a personal loan for a used car, you must fulfil the lender’s minimum salary requirements.
When you are availing of a personal loan to buy a used car, your age is an essential factor that the lender considers. To be able to borrow money, you must be at least 20 years of age.
Different lenders require a different set of documents to process your loan. Generally, you need your identity proof, address proof, income proof, bank details, and other essential paperwork to avail of such personal loans.
You can choose an instant personal loan for a used car that works best for you. Consider the repayment cost, your credit score credibility for speedier approvals, loan processing time, and disbursal amount before applying. Look at online financial lenders for the best, competitive personal loan for a used car.
You can also avail of pre-approved offers by Bajaj Finserv that are personalised just for you. Enjoy a hassle-free personal loan application procedure that helps you save time. Go ahead and type in a few basic details to check out your pre-approved offer.
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