Kanchan, a designer from Gurgaon, recently shifted to a new house. This has increased the distance of her studio from her house. She was thinking of buying a second-hand car for travelling to her studio. But Kanchan is worried about the financial implications. Buying a car, though used, would drain most of her savings. Then a friend told her about a Personal Loan for buying a used car. Paying instalments for the loan seemed feasible to her. So, she availed the loan and bought herself a car.

A Personal Loan is a multi-purpose loan. Using one to buy a car is just one of its many uses. Like Kanchan, you too can secure a Personal Loan for buying a used car. Here is how you do it:

  • Shortlist Lenders

All banks and financial institutions offer Personal Loans. Selecting one lender for the loan is a difficult task. But you eventually have to do it. Compare the loan features. Note the amount, repayment tenure, interest rate, and charge structure. The loan that ranks the best in all aspects would be the best. Usually, it will be the cheapest for you too.

  • Check Eligibility

After shortlisting the Personal Loan, you should check whether you qualify for the loan. Go online and check your Personal Loan eligibility.

  • Apply for The Loan

If you qualify for the loan, the next obvious step is applying for the loan. You can apply online for the loan. Usually, with known brands like Bajaj Finserv, the approval process is fast.

  • Submit the Documents Required

To get loan sanction, you have to submit some documents. Once you apply, the lender stipulates what you have to submit. The usual documents required include:

  • Your Identity Proof
  • Address Proof
  • Photographs
  • Income Proof
  • Bank Statements

Following these steps would help you avail a Personal Loan to buy a used car.

Benefits of a Personal Loan

Now, you might be wondering why you should avail a Personal Loan for a used car when used car loans are available. Well, a Personal Loan has some benefits over such car loans.

  • A Personal Loan is an unsecured loan. You do not need to pledge any security. But a used car loan requires a security. So, it may not be an option for everyone.
  • The interest rate for Personal Loans is comparatively lower. Personal Loans are thus more affordable.
  • A Personal Loan can finance the entire cost of the used car. This is not possible with other loans that finance only a certain proportion of the total cost.
  • The repayment tenure is higher for a Personal Loan. You repay over a longer time. Thus, your EMI is lower.
  • It is an instant loan that requires minimal documentation and is approved fast.

Kanchan availed the Personal Loan for the used car and her commute to the studio is easy now. With a low interest rate for the Personal Loan and easy repayment, her finances are also taken care of. Whether you treat it as a second car loan or buy your first vehicle with it, a Personal Loan may be the right choice. Do your research and apply for one.

Apply for Personal Loan Check your Loan Eligibility Calculate Your EMI