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.
Age: 18 to 80*
CIBIL Score: 720 or higher
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
- 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
- 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.
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.
*Higher age limit is applicable at the time of loan maturity.
Frequently asked questions
With a Bajaj Finserv Used Car Loan, you can get up to Rs. 77 lakh 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 100% 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 10.50% p.a.
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.