Know more about Used Car Loans
8th May 2020 1:00
Loan on Vehicle Amount
₹1,00,000 – ₹50,00,000
Loan on Vehicle Tenure
Up to 72 months
Loan on Existing Car Interest Rate Starting at
Like every other loan, loans for used cars have their own eligibility criteria. While it varies from lender to lender, most of them have similar requisites for people to follow. Tata Capital has easy eligibility criteria for people to fulfil so they can get a loan for used cars quickly.
We have different criteria for different entities, such as salaried individuals or self-employed individuals. Let’s see the criteria for the different types of entities that can avail of loans now.
Age must be between 21 and 60
Minimum monthly salary of Rs 20,000
Minimum of one year of work experience
The Applicant must be the proprietor of the business
Age must be between 21 and 65
Business must be in existence for at least three years
Minimum income of 2 lakhs per annum
Either the applicant or the partner must have a minimum income two lakhs per annum
Three months’ bank statements
ABB should be 0.5x the EMI
Minimum income of 2 lakhs per annum
Three months’ bank statements
ABB should be 0.5x the EMI
As you can see how straightforward the eligibility criteria are, you can make an informed decision much more easily now. Furthermore, with the different options available, you can choose one that suits your situation or explore alternatives too.
Almost every category of loan has pre-approved offers. Whether it be personal loans or home loans, these pre-approved offers act as major incentives for customers to avail of loans.
The good news is that apart from existing customers, new customers can avail of pre-approved offers for used car loans too. This can be useful for reasons such as the following:
When it comes to availing of a loan, your car can be your asset too. With Tata Capital's car top-up loan, you can pledge your car as collateral and avail of an instant Loan On Used Car to meet your financial requirements. That's right. Availing of a Loan On a used car has never been easier.
With Tata Capital, you can easily apply for a loan online or offline. You can also avail of a top-up on a car loan. All you need to do is fill out the online application form or visit your nearest branch, submit the required documents for verification, and receive the funds directly in your bank account. To apply for Tata Capital's Loan On Used Car, all you need to do is follow the simple steps of the application process.
You can easily avail of a Loan On Used Car online by filling out an application form. This form includes your personal as well as financial information.
Whether you're availing of finance against cars or top-up loans on a car, you'll have to submit minimal documentation for the application process. The documents required will depend on your type of employment- salaried or self-employed.
After you submit the Loan On existing car application and documents, we will verify them to process your request.
After we successfully verify your application and find no discrepancies, you will receive instant approval for your loan on used car.
After we approve your LAC or top-up loan on an existing car loan request, we will sanction your loan and disburse the amount directly to your bank account. That's it! You can now use the loan amount to find all your big-ticket expenses.
I am happy with the service provided by Tata Capital. Keep it up.
Thank you Tata Capital for your service and for money that timely helped us. Thank you once again.
Excellent and prompt service recieved from Staffs & Company.Certainly, I will recommend more customers to you. Regards ??
I took a used loan online from Tata Capital. Online verification of documents and smooth application process made it easier for me to avail a loan.
Tata Capital's used car loan is the best option for those looking to buy a used car. The assistance provided by their team made my application process easier.
I would recommend everyone to get a used car loan from Tata Capital. The loan process was super quick and hassel free. Good job team!
Buying a used car can be expensive, but thanks to Tata Capital's used car loan which helped me in buying a used car at affordable interest rates.
The interest rates offered by Tata capital for used car loans are the best out there. Would recommend it to anyone buying a second hand car!
Availing a used car loan has definitely become easier with Tata capital. Compared to my previous experience with other providers Tata capital's application process is much smoother
No, your EMI will remain the same throughout the 2nd hand car loan. However, you can enjoy flexible solutions with Tata Capital that fit your 2nd hand car finance requirement.
You can repay your loan through ECS, Direct debit, and post-dated cheques drawn on "Tata Capital Financial Services Limited".
With Tata Capita, you can avail of a Loan starting from ₹ 1,00,000/- up to ₹ 50,00,000/- depending on your eligibility.
When you avail of a loan for buying a used car, you receive the loan amount in a lump sum after the submission and verification of relevant documents. You have to repay this principal amount along with the applicable interest over a pre-determined tenure. You can apply for a used car loan online for faster loan processing.
Availing of a used car loan has the following benefits –
Easy car purchase – Bring home your favourite car in only a few simple steps.
No collateral needed – Your four-wheeler will serve as the used vehicle loan security. You don't have to pledge any other asset while availing of finance for used cars.
High loan amount – You can get a loan as high as Rs. 50 lakhs to buy the car of your choice.
Minimum paperwork – You can apply for used car loans online to avoid any hassle related to lengthy paperwork.
Repayment flexibility – You can choose between fixed and flexi EMI plans to repay your 2nd hand car finance comfortably.
Every lender has a minimum and maximum amount you can borrow as a loan. Tata Capital offers used car finance that covers a wide bracket - from Rs. 1 lakh to Rs. 50 lakhs.
Used four-wheeler loan interest rate is the rate at which you have to pay interest on the principal loan amount for a pre-determined tenure. Tata Capital’s used four-wheeler loan rates start at just 15% - one of the most competitive interest rates in the market.
Loan tenure is the period within which you need to repay your loan, including the interest. Tata Capital's maximum tenure is 72 months or 6 years.
For salaried individuals, the loan eligibility criteria are –
The age of the applicant must be between 21 and 65 years.
The minimum monthly salary must be Rs. 20,000.
At least one year of work experience is mandatory.
Salaried individuals need to furnish –
Photo identity proof documents
Income proof documents
Salary slips for the past three months
Address proof documents
Vehicle Registration Certificate
Telephone or mobile bill
The following are the second-hand car loan eligibility criteria for self-employed individuals –
Age must be between 21 and 65 years.
A minimum annual income of Rs. 2 lakhs.
The business must have been in existence for at least three years.
Self-employed individuals need to furnish –
Copy of their signature
Income proof for the past three months
Telephone or mobile bill
An online approval takes only about 30 minutes. However, the entire process, from documentation to loan sanctioning can take anywhere from 24 to 36 hours.
A co-applicant is a person who applies for a loan along with the main borrower. They will be equally responsible for the loan repayment in case of any default by the primary borrower. If you want to improve your loan eligibility, you can have a co-applicant apply along with you.
The following are the acceptable co-applicants for a second-hand car loan –
No, you don't need any additional collateral or security for the loan. The car for which you take the loan is itself the collateral that is needed, hypothecated to Tata Capital documentation.
You can apply for a used car loan financing with Tata Capital in the following ways –
Apply online through our website.
Email our customer support team.
Call us on our toll-free number – 1860 267 6060.
Take the help of our virtual assistant, TIA.
Visit a nearby branch and talk to our lending experts.
To avail of a loan from Tata Capital as a salaried individual, you must pass the following used car loan eligibility check–
Age – Between 21 to 65 years
Monthly salary – at least Rs. 20,000
Work experience – minimum of one year
For self-employed individuals, you must pass the following used car loan eligibility check–
Age – 21 to 65 years
Business stability – minimum three years
Annual income – minimum Rs. 2 lakhs
To determine your used car loan eligibility, check your current and potential income. You will need to repay your loan in Equal Monthly Instalments or EMIs. Income plays a key role in determining how much money you can spend each month to pay your loan EMI. The higher your income, the higher will be your eligibility and vice-versa. A high income also makes you eligible to borrow a higher loan amount.
The following factors affect an applicant’s used car loan eligibility –
Credit or CIBIL score – A high CIBIL or Credit score, preferably 750 or above, increases your eligibility.
Income – The higher the income, the more eligible you will be to opt for a higher principal loan amount.
Work stability – Your work stability will also impact your eligibility for a pre-owned car loan. It is important to have a stable employment status (in the case of salaried individuals) and business status (in the case of self-employed individuals).
Car type – Since the car will be the collateral for the used four-wheeler loan, lenders will also consider its age and make. A car with a high resale value and young age will increase loan eligibility.
Yes, a car valuation is required before approving your loan on the car at Tata Capital. This is because the used car acts as collateral and determines your loan eligibility. This makes verification doubly necessary.
With Tata Capital’s loans on cars, you can finance the purchase of second-hand passenger vehicles, including hatchbacks, sedans, SUVs, MUVs, etc. That said, remember that car models that are now out of production are not eligible for a loan on used cars.
A loan against a car is a simple and hassle-free way to access a loan amount of up to Rs. 50 lakhs to buy a vehicle without dipping into your savings.
In this loan, your vehicle acts as collateral against which a loan amount is disbursed to your account. All new passenger vehicles, including hatchbacks, sedans, SUVs, MUVs, etc., are eligible for a loan on used car finance.
Note that commercial cars, yellow plate vehicles and car models that are now out of production are not eligible for a loan against vehicles.
You can get a loan against car eligibility pre-approved offers ranging between Rs.1 lakh to 50 lakhs with Tata Capital. You also get a flexible loan repayment tenure that can be extended up to 72 months. We also offer online and offline payment methods to help you pay the loan conveniently.
Tata Capital offers the industry's lowest loan against car interest rates, starting at 12.99%. Such low interest rates mean you pay lower overall interest on your car loan. This reduces your monthly EMIs.
Note that the interest rate is determined by various factors such as your eligibility, income, the car against which the loan is requested, and so on.
A high down payment, for instance, highlights that you are a financially responsible individual and can repay the loan, reducing your loan against car interest rates. Whereas, a high CIBIL score (750 or above) and a healthy loan repayment pattern indicate that you are more likely to pay off your debts on time.
While a higher and more stable income may indicate a better loan repayment ability, a better used car will have a higher value. You can get a used car loan at a lower interest rate in all these instances.
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