The second-hand car market in India has been steadily gaining momentum over the last few years. According to a report, the Indian used car loan market will reach approximately USD16 billion by the financial year 2027. There are many reasons behind the boom of this segment, which include increased prices of new cars, new guidelines issued by the government, etc. At the same time, companies also provide loan facilities up to 95 percent on second-hand cars. Due to this, it becomes very easy for the people. This article of ours is on the process of a second-hand car loan because even today many people have doubts about how to complete the loan process. So let's elaborate:
Choose your car
The very first step for this is to choose your favorite car. Visit a reputable dealer with a good track record of selling pre-owned cars and consider it. How much is your budget, and how long are you getting the deal. Although you may find a good deal online or among your friends and family only. Even then the bank gives you the facility of loan.
On the other hand, if we take the example of one bank, then HDFC Bank is at the forefront of Used Car Loan, this bank offers the lowest down payment and even financing facility up to 100%. There will be some conditions and rules of the bank for this.
Apply for loan
You can contact the bank online and also offline to apply for the loan. HDFC Bank has a simple online application form that you can complete within minutes. Discuss the loan details with your chosen bank and take into account the interest rate, processing fee, and tenure of the loan on the loan amount you are eligible for. If you want to repay the loan in installments or in full Or are planning to foreclose, ask the bank about the prepayment charges. As in our example, HDFC Bank offers a loan facility with zero foreclose charges.
Take care of the document
Your bank may require documents, such as proof of income, ID, and address, to authenticate your application. If your account is in the same bank from which you are financing, then you have to submit very few documents for this. According to the information given on the HDFC Bank website, the bank can approve the car loan in 10 minutes. If you are an existing HDFC Bank customer, the process is fast and simple.