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Eligibility and Documents Required for Used Car Loan

        Following are the general used car loan eligibility factors –

  • Age – The age of the applicant must be between 21 and 65 years.

  • Income – The income of the applicant must be at least Rs. 20,000 per month (for salaried individuals) and Rs. 2 lakhs per annum (for self-employed individuals).

  • Work Stability – The applicant must have a stable employment status for a minimum of one year or stable business status for a minimum of three years. 

    Following are the general used car loan documents –

  • Photo Identity Proof documents – Voter’s ID/Passport/PAN Card/Driving License/Aadhaar Card

  • Income Proof documents – Copy of past three months’ bank statements, Copy of Income Tax Returns (ITR)/audited Balance Sheet and Profit and Loss Statements along with past three months’ Bank Statements

  • Copy of Salary Slips for past three months

  • Address Proof documents – Ration Card/Electricity Bill/Passport, Copy of Utility Bill/Bank Statements/Property Registration documents/Property Tax Receipt

  • Copy of Vehicle Registration Certificate

  • Copy of telephone or mobile bill

  • Copy of signature along with proof

     

    The pre-owned car loan eligibility and documentation requirements will vary depending on whether you’re a salaried individual or self-employed individual.  

Used Car Loan Eligibility

 

The following is the used car loan eligibility criteria for salaried individuals –

  • The loan applicant’s age must fall within the prescribed range of 21 to 60 years

  • The applicant must have a minimum monthly salary of Rs. 20,000

  • The applicant must have a minimum of one-year work experience. 

     

 

Salaried individuals need to submit the following used car loan documents –

  • Copy of photo identity proof documents like Voter ID/Aadhaar Card/PAN Card/Passport/Driving License along with passport-sized photographs

  • Copy of past three months’ Salary Slips for income proof

  • Copy of address proofs like Ration Card/Electricity Bill/Passport

  • Copy of Vehicle’s Registration Certificate

  • Copy of Telephone or Mobile Bill 

Documents required for Used Car Loan

Photo Identity Proof

Copy of photo identity proof documents like Voter ID/Aadhaar Card/PAN Card/Passport/Driving License along with passport-sized photographs

Salary Slips

A Copy of your Salary slips for the last three months

Address Proof

Copy of address proofs like Ration Card/Electricity Bill/Passport 

Vehicle Registration Certificate

Copy of Vehicle’s Registration Certificate 

Telephone/Mobile Connection

Copy of Telephone or Mobile Bill 

Used Car Loan Eligibility

 

Self-employed individuals must meet the following used car loan eligibility criteria –

  • The loan applicant must also be the proprietor.

  • The applicant’s age must be between 21 and 65 years.

  • The business must be up and running at least for the past three years.

  • The applicant must have a minimum income of Rs. 2 lakhs per annum.

  • Asset Backed Security (ABS) must be 0.5 times the EMI. 

 

Self-employed individuals need to furnish the following used car loan documents –

  • Copy of photo identity proofs – Driving License/Voter’s ID/PAN Card/Passport/Aadhaar Card along with passport size photographs

  • Copy of the applicant’s signature with proof of the signature

  • Copy of address proof documents such as Utility Bills/Bank Statements/Property Registration documents/Property Tax Receipt/Voter’s ID

  • Copy of Income Tax Returns (ITR), audited Balance Sheet and Profit and Loss statements along with Bank Statements for the past three months

  • Copy of telephone or mobile bill 

Documents required for Used Car Loan

Photo Identity Proof

Driving License/Voter’s ID/PAN Card/Passport/Aadhaar Card along with passport size photographs 

Signature Proof

Copy of the applicant’s signature with proof of the signature

Address Proof

Copy of address proof documents such as Utility Bills/Bank Statements/Property Registration documents/Property Tax Receipt/Voter’s ID

Income Proof

Copy of Income Tax Returns (ITR), audited Balance Sheet and Profit and Loss statements along with Bank Statements for the past three months 

Telephone/Mobile Connection

Copy of telephone or mobile bill 

USED CAR LOAN ELIGIBILITY

 

  • Either the Firm or the Individual partner must have an income of ₹2,00,000 per annum
  • 3 Months Bank Statements are required and ABB should be 0.5 times EMI
  • Telephone or Mobile connection is required

Documents required for Used Car Loan

Photo Identity Proof

A copy of your Voter ID / Passport / Driving License / Aadhaar Card

Income Proof

A copy of your three Months Bank Statements are required and Accelerated Book Build should be 0.5 times EMI & Audited Balance Sheet & Profit and Loss Statement.

Business Proof

A copy of your company's registered Partnership Deed / Certificate of Incorporation of public and private limited companies including Memorandum and Articles of Association along with a copy of the Commencement of Business certificate

Telephone/Mobile Connection

A copy of your telephone / mobile bill is required

Used Car Loan Eligibility

 

  • The individual should have income of  ₹2 lakhs per annum
  • Landline connection at office
  • 3 Months Bank Statements are required and ABB should be 0.5 times EMI

Documents required for Used Car Loan

Photo Identity Proof

A copy of your Voter ID / Passport / Driving License / Aadhaar Card along with a photograph

Address Proof

A copy of your Utility Bill / Bank Statements / Property Registration Documents / Property Tax Receipt / Voter ID

Income Proof

A copy of your Income Tax Return documents, Audited balance sheet & Profit and Loss statement along with your Bank Statements for the last 3 months

Certificate of Ownership

A copy of your Registered Partnership Deed or Certificate of Incorporation of Public and Private Limited Companies including Memorandum and Articles of Association

Telephone/Mobile Connection

A copy of your telephone / mobile bill is required

What are Factors Affecting Your Used Car Loan Eligibility?

 Your used car loan eligibility is dependent upon the following factors –

  • Income – The higher your monthly income, the higher will be your eligibility for a used car loan. Meaning, you can borrow a large principal amount.

  • CIBIL or Credit Score – A high CIBIL or credit score, preferably 750 or above, will increase your used car loan eligibility and vice-versa.

  • Outstanding Loan – Unpaid loans are a huge red flag and may make you ineligible to borrow a used car loan as opposed to a spot-free repayment pattern.

  • Work Stability – Having a stable source of income increases your loan eligibility whereas lenders may altogether reject your used car loan application in case of frequent job hopping or irregular business ROI. 

     Tata Capital will run a used car loan eligibility check before approving and sanctioning your loan.  

How to Improve Your Used Car Loan Eligibility?

 You can improve your used car loan eligibility in the following ways –

  • Opt for a higher downpayment – Downpayment is the portion of the car amount that you need to pay upfront. If you have means to pay a high downpayment, you can ultimately lower the loan principal and improve your chances of getting a used car loan.

  • Maintain a good CIBIL score – You are assigned a CIBIL or credit score based on your credit history. This score tells the lender who you are as a borrower. Pay your debts, credit card dues, etc. on time, have a balance between secured and unsecured loans, and check your credit record for discrepancies to have a credit score of 750 or above.

  • Choose a suitable loan tenure – Chances of used car loan eligibility are higher for shorter tenures. However, a short tenure means higher EMIs but the interest outgo is less. If possible, opt for a short loan tenure. You can adjust the loan tenure using an online used car loan EMI calculator.

  • Opt for a Willing Co-Applicant – You can opt for a co-applicant with a good CIBIL score and stable income. The co-applicant must be your spouse, immediate family members or any blood relative. 

What is the Maximum Used Car Loan You are Eligible For?

 Your used car loan eligibility can extend up to a principal sum of Rs. 50 lakhs. To check your eligibility in advance, use a useful online tool such as the used car loan eligibility calculator.  

What is the Interest Rate for Used Car Loan?

 The rate at which interest is to be charged on the loan principal over a fixed tenure is known as the used car loan interest rate. Our interest rates for second-hand car purchase start at just 15%.  

How to Calculate EMI using Used Car Loan Calculator?

 Before you purchase a used car on EMI, make sure to check your EMI value using a free online used car loan EMI calculator. All you need to use this calculator are three inputs – Principal Amount, Rate of Interest, and Loan Tenure. Just enter these inputs in the used car loan EMI calculator in their respective slots and the calculator will automatically show you the monthly EMI value within seconds.  

EMI Calculator

Detailed FAQs

 To avail a used car loan from Tata Capital as a salaried individual, you must meet the following used car loan eligibility criteria –

  • Age – 21 to 65 years

  • Monthly salary – at least Rs. 20,000

  • Work experience – minimum of one year

For self-employed individuals, the following are the used car loan eligibility criteria –

  • Age – 21 to 65 years

  • Business stability – minimum three years

  • Annual income – minimum Rs. 2 lakhs

  •  

     

 You will need to repay your used car loan in Equal Monthly Instalments or EMIs. Income plays a key role in determining the amount of money you can shelve out each month to pay off your used car loan EMI. As such, the higher your income, the higher will be your used car loan eligibility and vice-versa. Meaning, high income makes you eligible to borrow a higher loan amount.  

 The following used car loan documents will be needed for loan approval –

  • Photo Identity Proof documents – Copy of Voter ID/PAN Card/Driving License/Aadhaar Card/Passport

  • Income Proof documents – Copy of past three months’ Salary account bank statements

  • Salary Slips – Copy of past three months’ salary slips

  • Address Proof documents – Copy of Electricity Bill/Passport/Aadhaar Card

  • Copy of Vehicle Registration Certificate

  • Copy of Telephone or Mobile bills

 The following factors affect an applicant’s used car loan eligibility –

  • Credit or CIBIL score – Applicants with a high CIBIL or Credit score, preferably 750 or above, will have a higher used car loan eligibility.

  • Income – The higher the income, the more eligible the applicant will be to opt for a higher principal loan amount.

 

  • Work stability – Besides the quantum of earning, the applicant’s work stability will also impact their eligibility for a pre-owned car loan. It is important to have a stable employment status (in case of salaried individuals) and business status (in case of self-employed individuals). 

 

  • Car type – Since the car will be the collateral for the used car loan, its age and make are also taken into consideration. A car with a high resale value and young age will increase loan eligibility. 

 

 

 Once the required documents for used car loan have been submitted, the lender will verify all details to ensure authenticity. This process of document verification may take at least 24 to 36 hours. If the lender finds all used car documents to be valid and the borrower capable of repaying the loan on time, they will then proceed on to the next step – loan approval.

 Self-employed individuals will need to submit the following documents required for second hand car loan –

  • Photo Identity Proof – Copy of Passport/Voter ID/Aadhar Card/Driving License/PAN Card

  • Signature Proof – Copy of the applicant’s signature

  • Address Proof – Copy of Utility Bills/Property Registration documents/Property Tax Receipt/Voter ID/Bank Statements

  • Income Proof – Copy of Income Tax Returns, Audited Balance Sheet, Profit and Loss Statements along with past three months’ Bank Statements

  • Copy of telephone or mobile bills 

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