You may have thinking about buying the car of your dreams for years, but were never able to as it cost too much. However, you finally found a used car, but the only issue is that it is still too expensive to be purchased outright. Still, you can always avail a car loan to help you out with that. But, do you know everything relevant about used car loans? It is imperative for you to understand the benefits that you can from a loan so that you can manage it properly. However, it will also be helpful for you to know the eligibility criteria and limitations of the used car loan before you apply for one. Let’s check them out:

Car Loan Eligibility

  • Your minimum age must be 21
  • You need to have a steady source of income i.e. the nature of your job
  • Your salary must be at least Rs. 4 lakhs annually

While there are other eligibility criteria as well, the ones mentioned above are the most important.

Documents Required for a Car Loan

You will need the following documents to avail a car loan:

  • Applicant’s proof of age
  • An ID issued by the government of India
  • Application form with all the relevant information
  • Photographs (passport size)
  • Valid residential proof
  • Proof of income
  • Financial statements

Key Aspects about A Used Car Loan

  • Ensure that you have thoroughly researched everything about the loan and used car loan eligibility
  • Use loan calculators to know how much the EMIs will be
  • Plan your financials based on the tenure of the loan and EMIs

Additionally, you should know that not all loans for cars are eligible for tax exemptions. Loans availed by self-employed individuals for vehicles that are used for commercial purposes are eligible for tax deduction under section 80C of the Income Tax Act.

Instant Used Car Loan with PaySense

One of your first instincts while considering a loan would be to visit a bank. While it appears to be the best decision, you should consider more. The reason is that not all banks provide loans for used cars. Additionally, car loan provided by banks many-a-times fall short of the value of the car. So, the best option for you regarding used car loans is PaySense. PaySense does not have any problems in providing loans for used cars up to Rs. 2 lakhs. Additionally, you will not have to wait too long for the loan to get approved. So, download the PaySense app before you apply for any loan.