Tara wanted to get a used-car loan, but was unsure if she would be eligible for it. So, she visited the Tata Capital Online Car Store to check her eligibility. Through the portal, she found a lot of information, including that she was eligible for a used-car loan. It even helped in her car-buying journey. The information also made it easier for her to select a used car that met all her requirements.
If you too are looking to buy a used car, but are unsure about your eligibility, here are some things you should know.
Eligibility Criteria for Car Loans
- Loan-to-value (LTV): The LTV refers to the ratio of the loan with respect to the total value of the car. In most cases, the LTV can be around 90%. This means the loan provider can lend you up to 90% of the vehicle’s value. The remaining 10% of the amount has to be put in from your own pocket as down-payment.
- Income: For a businessperson, the minimum income must be Rs. 2 lakhs to be eligible for a car loan. A salaried person, on the other hand, needs to earn at least Rs. 3 lakh per year to be able to apply for a used car loan.
- Employment: A salaried person needs to have been working for at least two years, and only then will he or she be eligible for the loan. Meanwhile, a self-employed person needs to have been in business for at least three years before becoming eligible for a car loan.
- Tenure: Salaried or self-employed, the borrower has to repay the used car loan within 60 months, which is the maximum tenure. However, a borrower can repay the loan earlier than the set tenure, if they choose to do so.
Documents needed for a Used-car Loan
When you apply for a used car, you will have to submit the following documents:
- Address proof
- PAN card
- Income tax returns, salary slips, or Form 16
- Bank statement for 3 months
- Signature verification proof
Getting a Car Loan on Tata Capital Online Car Store
Now you know how to get a used-car loan, visit the Tata Capital Online Car Store if you want to buy a new set of wheels. The online portal can cater to your needs whether you want a new car or a used one. From a used car to a suitable used car loan, you can shop for it all here.
In a Nutshell
The eligibility criteria for getting a car loan from Tata Capital are straightforward. You do not have to run around to arrange for all kinds of documents. Additionally, you can find all the details regarding the car and loan application procedure in the same place, making it easier for you to buy a used car. Processing the loan takes a few days, after which you will be driving home the car of your choice.