Personal Loan for Second Hand Car

Introduction

One of the many goals individuals have when they start working is to purchase a car. The two main questions that come to mind are: when should people buy a second-hand car, and how do they finance it? For the former, in today’s market, purchasing a brand new car is not only a costly affair but also puts a lot of financial burden on the person. A used car, or second-hand car, offers a practical solution. It allows individuals with constrained budgets to own a vehicle and provides an opportunity to fine-tune their driving skills before investing in a new car.

A used car loan or a second-hand car loan is a popular option to finance a used car. This type of loan is specifically designed to help buyers purchase second-hand vehicles without exhausting their savings. Let us take a closer look at used car loans and consider whether a personal loan can be a good alternative option for purchasing a second-hand car.

What is a Used or Second-hand Car Loan?

• A used or second-hand car loan, as the name suggests, provides a financial respite to individuals looking for a used car. Many traditional financial institutions now provide second-hand car loans at good rates, however, one needs to be aware of all the expenses involved in a used car loan, including higher interest rates. 
• Another important consideration is the amount of loan disbursed. A used car loan will never cover the whole cost of the car. The second-hand car loan covers about 70%-90% of the car's value.
• Also, the tenure of the second-hand car loan is an important point here. Banks and other lenders offer loan tenure of up to 5 years depending upon the age and condition of the vehicle. 

If the used car loan option is not satisfactory, one may also look at a personal loan for purchasing a second-hand car. At SMFG India Credit, personal loans are provided at very competitive rates and come with flexible repayment options. Read on to find out more. Read on to find out more.

Personal Loan For Second Hand Car

• On the outset, a personal loan may seem a better fit than a used car loan. However, if you have a poor credit score, the chances of your personal loan are disbursed will be very low.
• The process to apply for a personal loan at SMFG India Credit is very customer-oriented and simple.
• On our website, you can even check your eligibility using the eligibility calculator and when it is ascertained that you are eligible, one can use the personal loan EMI calculator to further assist in planning your finances better.

We feel that both personal loans and used car loans have their positives and negatives. If you are looking for a higher loan amount with a lower interest rate, then you could choose personal loans. This might also work if you are looking at buying a car from a friend, or which is really old and hence doesn't attract very good rates for a used car loan.

Features and Benefits of a Personal Loan for a Second-Hand Car

• Attractive Interest Rates: Personal loans at SMFG India Credit come with attractive interest rates starting at 13%* per annum. Lower interest rates make your EMIs more manageable and reduce the overall cost of the loan.
• Loan Amount: As seen before, a used car loan covers up to 70%-90% of the car's value. With personal loans, you can get 100% of the amount you apply for, depending on your eligibility and creditworthiness. At SMFG India Credit, eligible borrowers can apply for loans up to a substantial INR 30 lakhs*.
• Flexible Loan Tenures: With loan tenures ranging from 12 months to 60 months, you have the flexibility to choose the tenure that best suits your repayment capability and financial situation.
• Quick Loan Approval and Disbursal: Once you check your eligibility, fill out the form, and upload the documents, we will provide a decision on your application within minutes of applying online. This decision will be based on factors such as your income, age, and credit score. Once all the verifications are completed and final approval is granted, you can get the approved funds within 30 minutes*.
• No Collateral Required: As opposed to a used car loan which is a secured loan, you do not have to pledge any asset and risk losing the same in case of loan default. 
• Availability of Helpful Online Tools: On our website, you can even check your eligibility using the personal loan eligibility calculator and when it is ascertained that you are eligible, you can use the personal loan EMI calculator to further assist in planning your finances better.

Eligibility Criteria for a Personal Loan

Personal loan eligibility is determined by several factors such as your age, nationality, income, employment history, existing liabilities, and creditworthiness. Let us take a look at the eligibility criteria you can expect at SMFG India Credit:

*Please note that this is only the basic eligibility criteria. The final eligibility will depend on several factors including SMFG India Credit’s policy at the time of loan application.

Documents Required for a Personal Loan

Our documentation requirements are simple and minimal to ensure a smooth and swift loan application process. Please note that the document requirements vary slightly for salaried and self-employed applicants.

*Please note that additional documents may be requested depending on your individual profile and SMFG India Credit’s policy at the time of application. 

Interest Rates and Other Charges

All eligible applicants can enjoy attractive interest rates at SMFG India Credit. In addition to interest rates, you may come across nominal charges such as processing fees and prepayment charges. Let us take a closer look at the interest rates, charges, and fees at SMFG India Credit:

Conclusion

Opting for a second-hand car can be a practical and budget-friendly choice, especially if you are just starting out. A used car auto loan is a popular option to finance such a purchase and can be easier to secure by pledging the car you plan to buy as collateral. However, a used car purchase loan comes with considerations such as potentially higher interest rates and loan amounts that cover only up to 70% to 90% of the car’s value. 

Conversely, personal loans offer lower interest rates and the entire loan amount you applied for. 

Considering a personal loan for a used car purchase? Check your eligibility and apply now to unlock attractive interest rates at SMFG India Credit.

FAQs

How to apply for a personal loan for a used car?

Applying for a used car loan through a personal loan finance option involves following simple steps at SMFG India Credit:

• On the application page, enter a few personal details and validate your mobile number with an OTP.
• Provide further information related to your monthly salary, existing financial obligations, etc.
• Select the preferred offer based on factors such as your income, credit score, existing debt, and so on.
• Get the approved funds within 30 minutes* for loan amounts of less than INR 2.50 lakhs*. Applications for loan amounts more than INR 2.50 lakhs* will require further processing.

Can I get a used car loan for 10 years?

Typically, used car loans are not available for a tenure of 10 years. Most lenders offer used car loans with repayment periods ranging from 1 to 5 years. The exact tenure depends on the lender's policies, the age and condition of the vehicle, and the borrower's credit profile.

Apply Now   Check your Eligibility