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Applying for Used Car Loan? Learn How Good Credit Score Can Help

  • Highlights

  • A high credit score reflects better on your credibility

  • It helps you secure a higher loan amount at a better rate

  • You can get flexible repayment terms on your loan

  • And makes your loan approval process faster and smoother

Your credit score is a measure of your credit-worthiness and is used by banks and non-banks 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.

Check your cibil score for free

A personal loan for used cars is a handy instrument to fund your second-hand car and Bajaj Finserv offers affordable interest rates on personal loans up to Rs.25 lakh.

Use your credit score to your advantage

Here’s how you can be rewarded for having a good credit score:

- Quicker approvals

Getting a personal loan for buying a second-hand car often involves a number of formalities. However, if you have a good CIBIL score for 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 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 as good by lenders. The higher your score, the better your bargaining power. Lenders tend to reduce interest rates for those who have favourable credit scores.

- Higher loan amount

A good credit score gives an 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.

How to Improve Your CIBIL Score

Factors that affect your application for a personal loan to buy a used car

- The loan amount

The maximum loan amount varies across lenders. However, depending on the lender’s terms, you may be able to borrow up to 80% of the car’s value.
Additional Read: How A Personal Loan Can Help You Deal with Liquidity Crisis

- The age of the car

You may want to buy older cars since they are cheaper. But, lenders usually have an age limit clause on used cars while lending money. You cannot avail a personal loan for a used car if the car is more than 10 years old.

- Your occupation

Your occupation plays an important 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 organization or a self-employed individual with sufficient income.

- Your income

Being employed is not enough. To avail a personal loan for a used car, you must fulfil the lender’s minimum salary requirements.

- Your age

When you are availing a personal loan to buy a used car, your age is an important factor that the lender considers. To be able to borrow money, you must be at least 21 years of age.

- Necessary documents

Different lenders require a different set of documents to process your loan. Generally, to avail such personal loans, you need your identity proof, address proof, income proof, bank details and other basic paperwork.

You can choose an instant personal loan for a used car that works best for you. Consider cost of repayment, 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 pre-approved offers by Bajaj Finserv that are customised 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.

The content of this document is meant merely for information purposes. The personal loan features mentioned in this article are subject to updation, completion, revision, verification and the same may change materially based on policy revisions. For more details, please visit our Personal Loan terms and conditions page here.

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