A Handy Checklist Of Documents For Used Car Loan Application

Introduction

Sometimes, things take time to win acceptance but once they do, they shine. That’s the case with pre-owned cars. A decade or two back, people used to have many reservations about buying a used car but now the trend of buying used cars is getting very popular.

So, what are the major factors that ushered in the change? Firstly, people began to appreciate the value for money in case of buying a used car. Secondly, the entry of big players in the market made the whole business of buying and selling certified old cars from dealers much more transparent and trustworthy. It also increased the sample size of the cars for sale and made the customer spoilt for choice. Lastly, the game changer was the availability of special financial instruments i.e. the Used Car Loan that has made the process of purchasing a used car easy. By providing loans at easy terms and pocket-friendly EMIs, lenders took away all the monetary concerns of the buyer and gave them the opportunity to take their favourite four-wheeler home, which by the way is refurbished to look just like a brand new one.

Financial institutes sanction used car loans in a hassle-free manner at the earliest possible. All one has to do is keep all the required documents and details handy. The next section lists the documents that you would need to process your Used Car Loan.

Used Car Loan - List of Documents

Financial institutions have a documentation and verification process that every applicant has to go through. It is there to verify the credibility and financial stability of the borrower. If you meet the eligibility criteria, just submit the following documents to enjoy a quick and easy disbursement of your car loan.  

• ​​KYC Documents :

a) Identity Proof : Keep the original and copies of your Aadhaar, Voter ID card, PAN card, Passport, and Driving License ready when asked to submit identity proofs of your name, age, and nationality. Some of these documents have your photograph on them that makes the process of identification easier.

b) Address Proof : Along with above-mentioned documents, if you have telephone and electricity bills with your name and residence address, you can also submit them as address proof.

• Income Proofs:

If you are a salaried person, you need to show your salary slips, Form 16, and financial statements. If you have your own business, you need to show the registration papers, profit-loss statements, balance sheets of the company along with KYC details of partners and board members.

• ​Passport Photograph:

Keep your passport size photographs handy, as these are required for the application form and for additional records.

• ​Select the Car in advance and Keep the Model, Make Year, and other evaluation criteria:

Make up your mind about the vehicle you want to buy as lenders may ask you to fill a Pro Forma Invoice that should contain the price of the vehicle along with the other documents to indicate the loan amount desired.

Why Choose Hero FinCorp?

Here are a couple of prominent reasons why Hero FinCorp is the first choice of thousands of customers when it comes to financing their purchase of pre-owned cars.  

• ​Approach:

We not only offer a high loan amount, up to 90% of the vehicle’s market value for a wide range of certified and non-certified cars, but we also offer multiple repayment options (PDC, NACH, ECS, etc.). We understand the aspirations and financial compulsions of the loan applicant and therefore offer flexible tenures and attractive interest rates. Our approval rate is also quite high.

• ​Outlook:  

We provide prompt service and believe not just in the one-time sale but also in building strong and long-lasting relationships with the clients. Our goal is to assist you in achieving your dreams of owning your desired four-wheeler. At Hero FinCorp, customer’s convenience is of utmost importance.

Conclusion

Thanks to the depreciation rate, lower insurance cost, lesser registration fee, etc. pre-owned cars have become so pocket-friendly that you can buy a sedan at the price of a hatchback. Also, when the car gets affordable, you need to spend a smaller sum and whatever residual budgetary concerns you still have, are resolved by Used Car Loans that are available at reasonable terms and conditions. When you plan to buy a used car, just make sure to keep your documents ready so that you get your loan amount in a jiffy and without any hassle.