According to the joint report of OLX Autos and CRISIL, by 2025-26, the sales of pre-owned vehicles in India are projected to cross 70 lakh units. As of 2021-22, the number of pre-owned vehicle purchases was 38 lakh.
One of the major driving factors leading individuals to go for a used car is cost-effectiveness. They can easily own quality vehicles despite their low budget. Further, if they find themselves in a financial shortage, they can opt for a used car loan for their rescue.
What is a used car loan?
A used car loan is an unsecured credit facility that individuals take for the purpose of purchasing a pre-owned vehicle. They can finance up to 90% of the vehicle’s price using this loan from the lender, Bajaj Finserv. The financial institution lets them get a repayment period between 12 and 60 months. Individuals can choose a tenor within this limit and repay the car’s price through easy instalments starting from the next month.
Eligibility criteria for the used car loan from Bajaj Finserv
To get the Bajaj Finserv Used Car Finance, individuals need to meet the following eligibility standards:
- The age of salaried applicants needs to be between 21 and 60 years.
- Self-employed individuals need to be in the age group of 25-65 years.
- Salaried individuals need to have a work experience of at least one year and must have a monthly income of Rs.20,000.
- This financing option is only limited to purchasing a private car.
- The car’s age must not exceed 10 years at the end of the repayment period.
- The vehicle must have had only one previous owner.
All these eligibility parameters may pose a challenge to getting a used car loan. Moreover, borrowers must bear at least 10% of the car’s price as a down payment. They can go for a personal loan as an alternative financing option. It can help them borrow an amount equivalent to the selling price of that vehicle. Additionally, since it comes with no end-use restriction, they can leverage the credit for purchasing a used car or meeting any other personal goal. Besides this, the personal loan comes with several other benefits as well.
Features and benefits of Bajaj Finserv Personal Loan
Individuals can enjoy the following benefits from this credit facility:
- Competitive interest rate
The financial institution charges relatively lower personal loan interest rates and charges. This will help borrowers significantly to keep their cost of borrowing at a minimum.
- Easy documentation
While applying for a personal loan, borrowers only need to submit their basic personal loan documents, such as voter card, Aadhaar card, bank account statement, etc. Besides, since collateral is nonessential in this loan, they do not need to take the hassle of arranging any property documents.
Alongside documentation, individuals may need to know about the verification process for personal loan.
- Flexible tenor
Lending institutions generally provide a repayment tenor between 12 to 60 months. Borrowers can choose a tenor that gives them a manageable EMI and repay without any financial distress. In this regard, they also need to know how they can find the right personal loan tenor that works for them.
- Pre-approved offers
The lender also facilitates customers with pre-approved offers on financial products like personal loan, business loan and credit card. It helps them quicken the loan application process. Customers only need to mention their names and contact details to check their pre-approved offers.
How to get a personal loan from Bajaj Finserv
Individuals can easily opt for the mortgage-free credit facility by completing the following step-by-step process:
Step 1: Visit the lender’s official website
Step 2: Find the application form for a personal loan
Step 3: Fill in the required personal details and provide the mobile number
Step 4: Enter the OTP for authentication
Step 5: Provide all the KYC details along with information regarding income
Step 6: Submit the filled-in application form
After completing these steps, individuals will successfully finish their application process for the personal loan. In this regard, individuals also need to know major mistakes that they must avoid while applying for a personal loan.
In conclusion, used car loans from Bajaj Finserv can significantly help individuals get financial assistance to purchase a pre-owned vehicle. However, they can only finance up to 90% of the car’s price using this credit facility. They must pay the rest amount from their savings or through other modes of funding like personal loans.