Most of the major banks and non-banking finance companies have harnessed the potential of the internet by introducing their online portals. The online portals are an easy and convenient way of carrying out banking services, including an application for a loan. Online portals provide all-inclusive information pertaining to interest rates, eligibility criterions, a list of mandatory documents, loan application status, and the like. This initiative of lenders has made the entire process of availing a loan much easier than earlier times.

Well, though the online application of loan is available for all types of loans, here we will focus on used car loans. Owing to the rise in demand for used cars, many banks have included used car loan as one of their services. Online application for a used car loan has its own benefits such as you can look up for your dream car on the website itself. Online portals will provide you all the details of the car you have chosen from their array of collection. Once you are at the website of a lender, say Tata Capital Car Loans, you will get a listing of used cars, including a list of popular used cars. You can search for your dream car either by types such as hatchbacks, sedans, SUVs or MUVs, or you can search by city. The online portal will also provide you price comparisons of different models of cars along with helping you search a car based on your budget and capacity of EMI payouts. So, whether you have already chosen a car from a physical showroom or you have selected a car from an online portal, here are few simple steps to follow in order to apply car loan online:

1. Do a comparative study – The market has many players offering used car loan at attractive rates. So, it is recommended that you gather as much information by doing a thorough comparative research about the interest rates, loan tenure, and EMI repayment options. In addition to variation in interest rates, there are some lenders who offer tailor-made EMI schedule to suit the need of the borrower too. Thus, make a well-informed decision before taking finance for your car.

2. Calculate EMI upfront – Use the online used car loan calculator to assess your monthly payout in terms of EMI. You will need to provide details of loan tenure, loan amount, and rate of interest to derive the EMI.

3. Access to eligibility criteria and mandatory documents – Once you have decided on the lender and also assessed your repayment capacity, gather information regarding the eligibility criteria for a used car loan and also the mandatory documents you will need to furnish for availing the loan. Lenders may require you to submit documents ID proof, address proof, and bank statements. It is important that you ensure submission of mandatory documents for smoother processing and approval of the loan.

4. Contact the lender – Many lenders provide telephonic assistance to apply for an used car loan online, yet others accept application through e-mails and SMS. You can also avail doorstep service of the lender, where an associate will visit your house to provide a brief about the loan process, interest rates, and to collect documents. In all the cases, you can apply for a loan through their online portal.

5. Approval – This is the final leg of getting a loan. Once you have met all the eligibility criteria and have submitted all the necessary documents, your application is sent for review. And, if everything goes well, the loan gets approved within the stated time as communicated by the lender.

Online application for a used car loan is an easy and hassle-free way of availing the loan. Online portals provide loan seekers the means to track their application status as well as check their repayment history online.  It is also a way to make a well-informed decision before seeking a loan.