Eligibility criteria and documents required for used car loan
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: 700 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 your used car loan eligibility
Securing a loan for a used car involves several key factors that lenders evaluate to determine your eligibility:
- Credit score: Your credit score is crucial. A higher score indicates a lower risk to lenders, which can improve your chances of approval and secure better interest rates.
- Income and employment stability: Lenders assess your ability to repay the loan by examining your income and employment stability. Consistent employment and a steady income reassure lenders of your repayment capacity.
- Loan amount and vehicle value: The value of the used car you wish to purchase impacts your loan eligibility. Lenders typically finance a percentage of the car’s value, so a higher vehicle value can mean a larger loan amount. Ensure the car’s price aligns with your loan amount requirements.
- Existing debts: Your current debt obligations are considered. A high debt-to-income ratio can negatively impact your eligibility. Reducing existing debts can improve your chances of securing the loan.
- Down payment: A substantial down payment reduces the loan amount needed and demonstrates your commitment to the purchase. It can also increase your eligibility by lowering the lender’s risk.
Understanding and optimising these factors can significantly enhance your chances of obtaining a loan for a used car.
Frequently asked questions
With a Bajaj Finserv Used Car Loan, you can get up to Rs. 1.02 crore by fulfilling the simple eligibility criteria and submitting minimal documentation. This high-value loan provides you with the required financial flexibility to bring home your desired car.
Your EMI (equated monthly instalment) for a second-hand car loan is calculated based on multiple factors such as loan amount, interest rate, and repayment tenure. Here is the formula to calculate your used car loan EMIs.
EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount, R is the interest rate, and N stands for the number of instalments.
However, to eliminate the hassle of lengthy calculations, you can use our used car loan EMI calculator. This will help you get the EMI amount in just a few clicks.
Your second-hand car loan amount depends on the lender’s policies and your eligibility criteria. With a Bajaj Finserv Used Car Loan, you can get a loan amount of up to 115% of the car’s value.
If you are a salaried individual, you should have a minimum salary of Rs. 20,000 per month to be eligible for a Bajaj Finserv Used Car Loan.
Bajaj Finance offers a used car loan that comes with competitive interest rates starting at 9.50% p.a.
Disclaimer
Results generated by the calculator(s) are indicative in nature. The interest rate applied on the loan will depend on the prevailing rates at the time of loan booking.
The calculator(s) are not intended to provide its users/ customers with results that are either certified by Bajaj Finance Limited (“BFL”) or are an obligation, assurance, warranty, undertaking or commitment, financial and professional advice by BFL, under any circumstances. The calculator(s) is only a tool that assists the users/ customers arrive at results of various illustrative scenarios generated from data input by the user/ customer. The use of the calculator is entirely at the risk of the user/ customer, BFL is not responsible for any reason, for any errors in any outcome resulting from the use of the calculator.
