Getting a loan on a pre-owned car- Here’s how to make it possible

Thinking of buying a pre-owned car? You’re not the only one; reports suggest that amidst the COVID-19 pandemic and fears of contracting the virus, more and more Indians, particularly first-time car buyers, are looking at used/pre-owned cars as personal mobility solutions for work and other commutes. Along with freedom of movement and greater comfort, personal hygiene and safety are other key factors propelling demand for used cars in India.

While you may have already chosen your desired pre-owned car in India, you may also be looking at financing options for the same. Used car loans are readily available for buyers although you need to keep a few basic pointers in mind for this purpose.

car on loan

Tips on applying for your used car loan

Applying for a used car loan means that you should decide your budget and assess how quickly you would be able to repay a loan. You can get a quick loan within 48 hours to bring home your dream pre-owned car, courtesy Mahindra First Choice.

Documents Required:

  • Personal Documents- Salary Slips, Address Proof, Photo Identity Proof, Mobile Phone Bills
  • Car Documents- Vehicle registration certificate

Loan Eligibility:

There are some factors that impact your eligibility for pre-owned car loans. These include the following:

  • CIBIL score- A good CIBIL score of 750 or higher increases the chances of your loan being sanctioned swiftly. The higher the score, the higher your eligibility for getting a loan.
  • Income Source- Having a stable source of income as a salaried or self-employed professional will enhance the possibilities of getting your loan sanctioned.
  • Unpaid Loans- If you have unpaid debt, it may hinder eligibility for a pre-owned car loan, raising red flags with the lender about your repayment ability and financial track record till date.

If you have all your documents in order along with a stable income source, a good CIBIL score and no unpaid loans, you will be eligible for the following loan terms:

  • Flexible repayment durations from 12-60 months or more, as per your convenience.
  • Loan amount up to 80% of the value of the pre-owned car.
  • Ability to borrow up to 3 times of your annual income (in case of salaried professionals) and up to 6 times of your annual income (in case of self-employed professionals).

Why Mahindra First Choice?

Avail of attractive car financing options at Mahindra First Choice courtesy its strategic tie-ups with renowned financial institutions such as Bajaj Finance, ICICI, IDFC and Manappuram among many others. Get loans sanctioned within 48 hours and buy reliable certified used cars that assure you freedom and peace of mind.

Experience a seamless car purchase with Mahindra First Choice, courtesy of its vast network of dealerships and showrooms along with attractive pricing for a large variety of car models. So what are you waiting for? Get all your documents in place and apply for your pre-owned car loan today without further ado!

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