Steps to get a Used Car loan from Tata Capital

Mar 02, 2017

If you are planning to buy a used car through financing, it might make sense to explore lending options other than your regular banks where you hold savings account. Reason for this is that banks might not be able to offer customized solutions to suit the needs of all borrowers. But the same is possible due to use of technology and flexible strategy of companies like Tata Capital.

Tata Capital offers highly completive used car loans that can be customized to suit borrower's repayment schedule preferences. Let's take a look at the broad steps needed to get a used car loan:

  • First step is to find a car that suits your requirements. Make sure that the vehicle is not more than 5 years old. Age of car is one of the most important criterias for lenders and they generally avoid giving loans for very old cars.
  • The lender will only give 90% of the cost of the used car. So it means that borrower needs to bring in atleast 10% as downpayment. So make sure that you have atleast 10% (better if more) of the cost available with you.
  • Remember that the used car loan interest rates are higher than those of new cars and depend on a variety of factors. So make sure that you discuss and deliberate the details of the loan with the lender and if possible, get the rates negotiated downwards by bringing in additional down-payments (over and above 10%)
  • Once you have arranged the downpayment, submit your application with all required documents like identity proof, age proof, address proof, income proof, etc.
  • You application will be processed and if found to be credit-worthy, the loan will be approved and amount shall be released.