Secured loans require borrowers to pledge an asset or a property, as security for the loan. In the event of default, the lender can seize the collateral to recover the outstanding amount. Due to this reduced risk for the lender, secured loans often come with lower interest rates. On the other hand, unsecured loans do not involve collateral and are solely granted based on the borrower's creditworthiness. As a result, unsecured loans typically have higher interest rates and may require a strong credit history for approval. The choice between secured and unsecured loans depends on individual circumstances, risk tolerance, and the availability of assets for collateral.
What is a secured car loan?
Car loans are usually secured loans as they require collateral, usually, the vehicle being financed is considered as the security. In the event of default, the lender has the right to repossess the car to recover the outstanding amount. The collateral reduces the risk for the lender, leading to lower interest rates. Secured loans are often more accessible for individuals with varying credit histories, making them a practical choice for those looking to finance a vehicle.
Bajaj Finance offers two types of secured car loans – used car loans and new car finance. While used car loans can be used to fund your second-hand car purchase, new car finance is used to fund your new car purchase. Depending on your requirements, you can choose the type of loan you want. Our car loans usually come with simple eligibility criteria and minimal documentation. However, the eligibility criteria and documents might differ basis the loan you opt for.
Features of our used car loans
As the name suggests, you can opt for used car loans to fund the purchase of your second-hand car. Bajaj Finance offers used car loans that come with a host of features such as:
- High-value finance: With our asset-based financing, you can get a loan of up to 115% of the car’s value.
- Quick disbursal: Our used car loans come with a speedy disbursal facility. You can get the funds you need within 48 hours* of approval.
- Flexible tenures: Spread the cost of your car over a repayment period of up to 84 months and repay your loan with ease.
- Loan up to Rs. 1.02 crore: Get easy access to substantial loan amounts with Bajaj Finserv Used Car Loan and bring home your dream car easily.
Features of our new car loans
Bajaj Finance offers high-value new car loans that can help you fund the purchase of a new car. These new car loans come with a host of attractive features such as:
- Loan up to Rs. 10 crore: Get a high-value loan and bring home the car of your choice with ease.
- Quick approval: Our speedy approval facility provides you with quick access to funds so that you can purchase your dream car without delay.
- Flexible repayment tenures: Repay your loan with ease over a long repayment period of up to 96 months.
- Minimal documentation: Our new car finance requires just a handful of documents. All you need to submit is your KYC documents, PAN card, salary slips and more.
Click on the link given below to understand more about our car loans.
