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Introduction
The Indian pre-owned car market is the world’s fifth-largest, behind China, the United States, Japan, and Germany. Every year, over 5 million second-hand automobiles are sold in India.
India’s second-hand car sector is predicted to grow at a 15% CAGR between FY21 and FY26, as more individuals choose pre-owned vehicles for personal transportation.
As a result of COVID-19, digitalization, changing demographics and ambitions, first-time purchasers, and the availability of financing choices, the used automobile market in the country is predicted to reach over 70 lakh vehicles by 2025-26, up from 38 lakh vehicles in 2020-21.
Before individuals consider buying a pre-owned vehicle, they need to know how to get the best deal possible. A wise buyer will do their homework on cars they are considering, including loan terms and financing.
A pre-owned vehicle loan will be slightly different for different lenders, so borrowers need to ensure they take financing from the lender that suits their needs.
Who qualifies for a pre-owned car loan?
To qualify for a Muthoot Capital used car loan, a person must meet the following requirements:
- Applicants must be Indian residents to qualify for a Muthoot Capital pre-owned car loan.
- To avail of a pre-owned car loan, a person needs to be at least 21 years (at the time of application) and 65 years (at the end of the loan tenure).
- Applicants from various backgrounds, including salaried employees, self-employed individuals, and agriculturists, are all eligible.
- To be eligible for a pre-owned car loan, salaried employees should earn at least Rs. 15,000 per month, and self-employed people must make a net profit of Rs. 1,50,000 p.a.
What documentation is required for a pre-owned car loan?
The following documents are required for a Muthoot Capital second-hand car loan:
1. A valid evidence of identity:
A person must present one of the following documents to prove their identity: a passport, voter ID card, Adhaar card, driving license, or PAN card.
2. A valid evidence for address:
Individuals must present a passport or Aadhaar card or voter ID card or driving license or telephone bill or electricity bill or gas connection bill or ration card, or LIC policy as proof of address.
3. A valid proof of income:
As proof of income, one must present an ITR or Form 16 or a payslip or salary credit in their bank statement.
4. Asset proof:
The most recent land/building/house tax receipt can be submitted for asset proof.
5. Photo proof:
For photo proof, submit a current passport-size photo.
How do you apply for a pre-owned car loan?
Instantly obtain a low-interest pre-owned car loan and read the instructions carefully before applying.
- Applicants need to check whether they qualify for a used car loan and if they have all of the necessary papers. The factors mentioned earlier can be used to determine used car loan eligibility.
- Apply now at www.muthootcap.com, the Muthoot Capital Service website.
- Now, applicants need to examine how much loan amount they can get.
- To get the optimal term and the amount that meets their requirement, applicants can use the EMI calculator on Muthoot Capital’s website.
- Now, submit the required documents.
- Get the loan authorized and get behind the wheel of your dream car.
Getting a pre-owned car loan from Muthoot Capital has several perks. The loan application is straightforward, and it will be approved and disbursed fast. The applications can even be submitted online.
The repayment period is flexible, with pre-owned car loans ranging from 12 to 60 months. With Muthoot Capital, borrowers can also get pre-owned car loans at attractive interest rates.
Conclusion
With used cars being cheaper than new ones, getting a loan to buy one is the first thing that comes to mind if one is on a tight budget but wants to have the benefits of owning a vehicle.
Applying for a used car loan is simple, but borrowers need to keep in mind some things when applying for a used car loan.
When applying for a second-hand car loan, keep in mind that there are fees in addition to interest rates, such as processing fees and pre-payment charges. Borrowers need to use the used car loan EMI calculator to determine their EMI based on the used car loan interest rate and the loan tenure. This will assist them in budgeting and making an informed decision.
