Sebanti Roy Chowdhury

Meta Description: Apply for an AU Bank used car loan and enjoy the convenience of a personal four-wheeler at an affordable interest rate, tailored repayment period, and easy EMIs. AU Bank Used Car Loan Has your family grown bigger than the two-wheeler size? Are you tired of long commutes in overcrowded public transport? Do you want the freedom to hit the road and drive wherever you wish to go at any time of the day? Then it's time you bought a car.  But if budget is a constraint, or you are new to driving and hate the thought of scratches and dents on a brand-new car, you can buy a pre-loved one. You can get hold of a good model at a reasonable price and fund the purchase with a used car loan. Loans for pre-owned vehicles from AU Bank are incredibly affordable, with easy repayment installment options. Not only do you save money in insurance and let someone else bear the brunt of depreciation on your car, but you can also enjoy a competitive used car loan interest rate, simple documentation, and instant approvals with AU Bank. The used-car market is getting more organized. Today, finding a good deal on a well-maintained pre-owned vehicle is no longer a challenge. With a second-hand car loan from AU Bank, you can now easily afford any hatchback, SUV, or luxury sedan of your choice and experience the joy of the lifestyle you always wanted. Features of a Used Car Loan  A pre-owned car loan enables you to ride your private four-wheeler without worrying about the strain on your pocket. The key features of finance on used cars are as follows: A simple application process with minimal documentation You can get a loan for a second-hand car by filling up an application form online. Most loan-related procedures can be processed through digital portals, making the paperwork hassle-free. Flexible repayment options You can repay your used car loan via ECS, post-dated cheques, or online fund transfers as per your convenience. Customized repayment tenures You can pick a repayment period according to your financial needs. A long tenure brings down the monthly installment amount, making your loan pocket-friendly. Conversely, you can also opt for a shorter term and lower your total interest outgo. Reasonable interest rates Used car loan rates are often inexpensive, and the loan offerings are tailored to your financial requirements.  Quick approval and disbursal Once the bank verifies your documents and credentials, your loan can get approved instantly. The loan amount gets credited to your bank account soon after, helping you avoid any delays in accessing the funds you need. High loan amounts Used car loan financing can cover a considerable percentage of the used car's depreciated price or Insured Declared Value (IDV). You can also get up to 100% of the car's value on select assets. Transparent processing You need not be concerned about unpleasant surprises or hidden charges. A car loan for second-hand car features low processing fees, and you can find out the associated costs from the customer care department. Option for prepayment in full or in part You can repay a large chunk of the loan amount, or the entire sum, by paying a low foreclosure or prepayment charge. Used Car Loan Eligibility Both salaried employees and self-employed individuals can apply for used car loan financing. The eligibility criteria for each category are listed below: Salaried people: A steady salary A stable employment status with a reasonable duration of service in the current organization A permanent residence A satisfactory credit history, if any Self-employed applicants: An established cash flow as business profits or income from profession A history of operating in the same line of business for an acceptable number of years A decent credit score In both cases, your age must be more than 21 years but less than 65 years. Minimum income norms also apply. Benefits of Used Car Loan Owning a car is not a luxury anymore, but a genuine necessity. With a second-hand car loan, you need not dig into your hard-earned savings to bring home the car of your choice. The benefits include: Paying the price in small, manageable monthly installments instead of shelling out the total amount at one go An attractive pre-owned car loan interest rate available with a robust credit profile Possibility to avail of the loan even if you are new to credit No need for collaterals, the car itself acts as the loan security Simple used car loan eligibility, making the necessary finance accessible to anyone with a regular income  An easy application process with only a few straightforward steps and uncomplicated paperwork with readily available documents  Minimal processing charges  Flexibility to select repayment schedules as per cash flows Fast financing with online applications, paperless processing, instant approvals, and speedy disbursals of the sanctioned sum How to Apply for a Used Car loan 1. Identify a pre-owned car giving good mileage with features matching your family's requirements. 2. Take a mechanic's help to check the vehicle to rule out mechanical issues and take a test drive. 3. Inspect the insurance details and registration certificate and check if the engine and chassis numbers on the papers match the car. 4. Compare schemes and find the financial institution offering used car finance rates you can afford and customizable repayment options. 5. Find out the amount you have to repay every month using an online car loan calculator. 6. Check if you fulfill the used car loan eligibility conditions. 7. Apply online, call the financer's helpline, or visit the nearest branch to fill up the application form. 8. Decide on a repayment period as per your financial resources. 9. Submit all the relevant used car loan documents to speed up the processing.  10. Contact customer care for details of the application process. Documents required for the used Car loan  The standard used car loan documents include: Filled and duly signed application form Recent passport-sized photographs A report of the used car's valuation Vehicle Registration Certificate No Objection Certificate from the previous owner's finances, if any Signature verification proof: Passport/ Driving License (legible and laminated)/ Credit Card Statement/ Banker's Verification Age proof: Passport/ Photo Driving License with the date of birth/ Voters ID Card/ PAN Card/ School/College Leaving Certificate Identity Proof: Aadhaar Card/ Passport/ PAN Card/ Driving license/ Voter's ID Card Address Proof: Passport/ Aadhaar Card/ Driving License/ Utility bills (Electricity/ Gas/ Telephone)/ Voter's ID Card/ Property registration papers/ Property tax receipt/ Notarized and registered rent agreement Income Proof: For salaried employees: Salary slips/ Latest Form 16/ Bank statements showing salary credited/ Recent Income Tax Returns (ITR) For self-employed individuals: i. Profit and loss statements ii. Balance sheet certified by a CA iii. Recent Income Tax Returns (ITR) How to Calculate Used Car Loan Interest The rate depends on the following factors: Credit Score: If you have made timely repayments on past credits, you can get lower used car loan rates. The repayment period and down payment: The longer the tenure and the higher the down payment amount, the lower the levied used car finance rates. Your debt-to-income ratio: If you do not owe much money to other lenders, then most of your income might be free to service a new loan. Therefore, you can get an attractive pre-owned car loan interest rate.  Age of the car: A newer car can fetch a higher resale value if in the unwanted event of repossession of the vehicle. Thus, if you buy a sparingly used car, interest rates can be lower. Car Loan Calculator  Knowing in advance the sum you have to keep aside every month for your used car loan repayment can help you avoid missed payments and penalty charges. An online car loan calculator helps you with the math preventing human errors. Just enter the following values in the respective fields: Principal loan amount Rate of interest Repayment tenure The calculator will instantly display the accurate equated monthly installment (EMI) you have to pay. Check out the EMI amount, select a loan tenure to pay off your second-hand car loan comfortably, and become the proud owner of a premium car today! FAQs  1. How to get a used car loan? Getting a used car loan from AU Bank involves the following straightforward steps: Fill up the application form: You can enter your details on the website and let our representative contact you. Otherwise, you can call our helpline number @- or write to us- You can also visit any of our 709 banking touchpoints spread over 500 cities and apply for the loan. Submit the necessary documents: AU Bank requires minimal paperwork, ensuring quick loan processing. We will verify your information and determine your used car loan eligibility. If approved, we will sanction the loan, and you can get the funds you need. 2. What is the maximum used car loan available? You can get loans for up to a specified percentage of the used car's value. Your income, credit score, employment status, and the make and model of the vehicle you plan to buy play a role in deciding the credit available for you. In select cases, AU Bank provides up to 100% finance. You can get in touch with our customer care team to determine the loan amount we can sanction to you. 3. How long will it take for my used car loan approval? You have to furnish specific documents along with your application form when you apply for used car loan financing. We will inspect the documents and validate the authenticity of the information you provide. If your credentials match our loan criteria, we provide instant approvals. Therefore, to ensure speedy loan approvals, keep all relevant used car loan documents ready when you apply. Our team will assist you with the documentation. 4. What is the minimum and maximum used car loan amount? The amount of car loan sanctioned depends on the selected car's price, model, and age. The minimum loan amount is the least sum you are sure to get as a loan if your credit application is approved. The maximum loan amount is the highest finance you can avail of based upon your second-hand car loan eligibility. AU Bank continually strives to meet customers' financial requirements. You can contact our customer service department, and they will help you get the finance you need. 5. What are the lowest used car loan interest rate? Interest rates vary from one financial institution to another. You can search online to find the lowest used car loan interest rate available. However, AU Bank offers unbeatable interest rates and customized loans with flexible repayment tenures to ease your financial burden. Call us or write to us to know about the details of our loan schemes. 6. Are there any tax benefits of a used car loan? Self-employed individuals buying used cars for commercial purposes can enjoy tax relief on used car loan interests. The interest paid in a financial year qualifies for tax deductions under Section 80E of the Income Tax Act. This tax benefit lowers the tax liability to a considerable extent. Also, self-employed professionals or business owners can file a tax break on the used car's depreciation value. 7. What are the interest rates levied upon my used car loan? When you repay your car loan for second-hand car, along with the loan principal, you have to pay interest on the sanctioned sum. The interest rate is the percentage of the total principal loan amount at which this interest is charged. The interest rate that you have to pay depends upon your: Income Credit score Repayment tenure Chosen car's make and model AU Bank is dedicated to providing unmatched used car finance rates, low processing fees, and zero hidden charges. You can contact our customer service staff to find out your loan eligibility. 8. Do I need a guarantor for a used car loan? If your income and credit score satisfy our eligibility criteria, a guarantor may not be necessary. But if your credentials are subprime, you may need a guarantor to ensure your pre-owned car loan gets approved. However, with AU Bank, you can get customized solutions for your specific financial needs. Even if you are new to credit, you can get a loan. Contact our customer service department to know more about the applicable terms and conditions. https://www.bankbazaar.com/used-car-loan.html https://www.tatacapital.com/vehicle-loan/used-car-loan.html https://www.hdfcbank.com/personal/borrow/popular-loans/pre-owned-car-loan https://www.icicibank.com/Personal-Banking/loans/car-loan/new-pre-owned-car-loans.page https://muthootcap.com/used-car-loan.php Check Used Car Loan Interest Rates, Fees & Charges by Tata Capital Used Car Loan EMI Calculator- Calculate your EMI online with Tata Capital https://www.cars24.com/blog/buying-a-used-car-is-good/ https://www.business-standard.com/article/news-cd/5-reasons-why-you-should-buy-a-used-car-_1.html https://www.aubank.in/personal-banking/vehicle-loan/car-loan/used-car-loan https://www.aubank.in/blogs/how-does-a-car-loan-work https://www.aubank.in/blogs/all-you-need-to-know-about-pre-owned-car-loans https://www.paisabazaar.com/faqs/car-loan/ https://www.deal4loans.com/loans/car-loan/used-car-loan-interest-rates-eligibility-in-india/ https://www.gopaysense.com/blog/do-you-know-the-benefits-of-taking-a-used-car-loan/ https://economictimes.indiatimes.com/wealth/borrow/how-to-get-a-loan-to-buy-a-pre-owned-car/articleshow/-.cms?from=mdr https://mahindrafinance.com/loans/pre-owned-car-loans/pre-owned-car-loans-application-form https://www.moneycontrol.com/rubique/knowledge-center/5-things-to-know-about-car-loans-.html https://www.bankbazaar.com/car-loan/used-car-loan-interest-rates.html https://muthootcap.com/used-car-loan-interest-rate.php#:~:text=Factors%20that%20Impact%20Used%20Car%20Loan%20Interest%20Rate&text=Ratio%20of%20debt%20to%20income,affects%20used%20car%20loan%20rates