Used Car Loan eligibility and documents

Read on to know the criteria required to get our used car loan.

Eligibility criteria and documents required

A few simple criteria must be met to qualify for our used car loan. You will also need a few documents to complete your application.

Eligibility criteria

Nationality: Indian
Age: 18 to 80 years*
CIBIL Score: 720 or higher
Employment:
For salaried: Individuals should have at least 1 year of experience and a minimum monthly salary of Rs. 20,000
For self-employed: Applicant must submit an ITR proof of the last 2 years

Documents required

  • KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ letter from NPR/ NREGA job card
  • PAN card
  • Employee ID card
  • Salary slips for the last 2 months
  • Bank account statements for the previous 3 months
  • Vehicle registration certificate and insurance copy

Note:

  • The loan is available only for private cars.
  • The car should not be more than 12 years old, at the end of the tenure.
  • The car should not have more than 2 previous owners.

*Higher age limit is applicable at the time of loan maturity.

Factors that affect used car loan eligibility

When it comes to securing a used car loan, several factors come into play, influencing your eligibility for approval. Some of them are:

  • Credit score: One of the most critical factors lenders consider is your credit score. A higher credit score signifies a lower credit risk, making you more attractive to lenders. Aim for a good credit score to increase your chances of loan approval and secure better interest rates.
  • Debt-to-Income ratio: Lenders evaluate your debt-to-income ratio, comparing your monthly debt payments to your gross monthly income. A lower debt-to-income ratio indicates that you have sufficient income to cover your existing debts and the proposed loan payment.
  • Age and mileage of the car: The age and mileage of the used car you intend to purchase can also affect your loan eligibility. Lenders may have restrictions on financing older vehicles or those with high mileage due to increased risk.

Strategies to improve used car loan eligibility

1. Review and improve credit score: Regularly check your credit report for errors and dispute any inaccuracies. Pay off outstanding debts and credit card balances to improve your credit utilisation ratio, which can positively impact your credit score.

2. Increase down payment: Save up for a larger down payment to reduce the loan amount required. A higher down payment not only lowers your monthly payments but also demonstrates financial responsibility and commitment to the lender.

3. Maintain stable employment and income: Lenders prefer borrowers with a stable employment history and consistent income. Provide documentation such as pay stubs or tax returns to verify your income and reassure lenders of your ability to repay the loan.

4. Pay off existing loans: Reduce your debt-to-income ratio by paying off existing loans or credit card balances. A lower debt-to-income ratio demonstrates financial stability and increases your chances of loan approval.

How to apply for used car loan

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Step-by-step guide to applying for a used car loan

  • Click on the 'APPLY' button on this page.
  • Enter your 10-digit mobile number and submit the OTP for verification.
  • Fill in your personal details including your full name, mobile number, email ID, and more.
  • Enter details of the car if you have identified the one.
  • Verify or update your KYC details and proceed to schedule an appointment for further verification.

Our representative will call you on the next steps. And the loan amount will be transferred to your bank account upon the verification of your submitted documents.

Frequently asked questions

What is the maximum tenure to repay the used car loan?

You can take advantage of our flexible repayment tenures that range up to 72 months.

What is the CIBIL Score required to be eligible for used car loan?

A CIBIL Score of 720 or higher is required to be eligible for our used car loan.

What is the maximum amount of used car loan that I can get?

You can get used car loan of up to Rs. 77 lakh, which you can repay comfortably over a tenure of up to 72 months.

What are the eligibility criteria for getting used car loan?

The eligibility criteria are as follows:

Nationality: Indian
Age: 18 to 80*
CIBIL score: 720 or higher
Employment:
For Salaried: Individuals should have at least 1 year of experience and a minimum monthly salary of Rs. 20,000
For Self-Employed: Applicant must submit an ITR proof of the last 2 years

*Age should be 80 or less at the end of the loan tenure.

Can I apply for a used car loan if I have a bad credit score?

Having a good credit help you get a loan approval easily and at better terms. However, if you are applying for a used car loan, you should have a minimum CIBIL Score of 720.

Is it necessary to have a salary account to avail of a used car loan?

If you are a salaried individual, you must have a minimum salary of Rs. 20,000 to be eligible for a used car loan. You are also required to submit salary slips and bank account statement when you apply for this loan.

How much time will it take for a pre-owned car loan to be approved?

It takes around 48 hours* for you to receive funds in your bank account when you apply for a pre-owned car loan. Bajaj Finserv Used Car Loan comes with simple eligibility and minimal documentation.

Who can apply for a used car loan?

Both salaried and self-employed individuals can apply for a used car loan. Bajaj Finance offers a used car loan that comes with simple eligibility criteria and minimal documents. If you are a self-employed individual, you need to have ITR (Income Tax Returns) proof for a minimum of 2 years. However, if you are a salaried individual, you should have a monthly salary of minimum Rs. 20,000.

What are the factors that affect used car loan eligibility?

There are several factors that affect your used car loan eligibility. These include your credit score, income, employment status, and more. Bajaj Finance offers used car loans that come with simple eligibility criteria and minimal documentation.

What is the impact of your credit score on your used car loan eligibility?

Your credit score plays an important role in deciding your overall used car loan eligibility. Having a good CIBIL Score will help you get a used car loan on better terms and conditions. You should have a CIBIL Score of 720 or higher to get a used car loan from Bajaj Finance.

What are the strategies that can help to improve your second hand car loan eligibility?

There are several strategies that you can use to improve your eligibility for a used car loan. Some of these include improving your credit score, increasing your income and more.

What are the strategies that can help to improve your second-hand car loan eligibility?

There are several strategies that you can use to improve your eligibility for a used car loan. Some of these include improving your credit score, increasing your income and more.

Can I get 100% financing for a used car?

With Bajaj Finserv Used Car Loan, you get asset-based financing of up to 
100% of your car’s value. This high-value loan allows you to bring home your dream car with ease.

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