An affordable alternative to buying a brand-new car is to purchase a pre-owned vehicle. Apart from enjoying the convenience of traveling in a four-wheeler, you can also save money on depreciation and get attractive car financing options if you choose a used one.

Learn everything you need to know about used car finance in Varanasi to make the application process as hassle-free as possible.

How does a loan for used cars benefit you?

• You will apply for a smaller loan amount if you buy a used car because used cars are cheaper. You will also pay smaller EMIs with used cars compared to new models.
• A lender might finance a car to a specific percentage of its value.
• Loans are easy to obtain and convenient. Online applications with minimal documentation and quick approval are the best way to get a used car loan.
• Your business may require frequent driving, so you can get a second-hand car loan for business use and claim tax benefits.

What are the eligibility requirements for used car loans? 

An age range

• Between 21 and 65 years old is the minimum age for applicants.

Income

• At least Rs. 20,000 per month is necessary for salaried individuals.
• Self-employed individuals need an annual income of Rs. 2 lakhs.

Stability in the workplace

• Individuals who are salaried must have had a steady employment status for at least a year
• Individuals who are self-employed must have a business of at least three years

What is the interest rate on second-hand car loans? 

There are various factors that determine your eligibility for these second hand car finance but you can qualify for more competitive used car loan interest rates if:

• Your income is high and steady.
• You have an excellent CIBIL score and a spotless credit history.

What is the process of applying for a loan to buy a used car? 

Step 1-Application: Complete our online application form to begin the process.

Step 2- Documentation: There is minimal documentation required for pre-owned auto loans, as detailed below.

• You are required to submit a photo id such as your Aadhar Card, passport, or voter identification card.
• Submit a copy of your salary slips or salary account statements for the last three months if you are a salaried employee.
• Provide a copy of your income tax returns, audited balance sheet, profit and loss statement, and bank statement for the last three months if you are self-employed.
• Also, submit an electrical bill, a telephone bill, or your ration card.
• You must submit the registration documents for your business or receipt for the property tax if you are self-employed.
• You must submit a copy of the registration certificate for the vehicle you are buying.
• A copy of your signature, along with proof of your signature.

Step 3- Verification: As soon as the lender has reviewed your documents and determined you are eligible, the lender will approve your application.

Step 4- Loan sanctioning and disbursement: Once your loan application is approved, your lender will sanction your loan and disburse the appropriate amount within 36 hours. Bhumi Finance also provides cars insurance in Varanasi for second-hand cars.

Lastly, some thoughts

Utilize used car financing options from a reliable lender to afford a car of your choice without compromising your savings. Explore Bhumi Finance’s best used car loans or customized second-hand car loans now. Financing up to 100% is available on certain vehicles, with attractive interest rates and flexible repayment plans. Check out our website for more information and to apply for free!