Used car loans are approved quickly when the car and its papers are clean. Most delays come from the car, not the borrower. Check these before you commit.
Age and kilometres
Lenders fund cars that will be under 10 years old at the end of the loan. A 6 year old car therefore gets at most a 4 year loan. Very high odometer readings reduce valuation.
Funding limit
Expect 70 to 85 percent of the lender's valuation, which is usually below the asking price. Keep 20 to 30 percent ready as down payment plus RC transfer and insurance costs.
Papers to inspect
- Original RC with no existing hypothecation, or an NOC and Form 35 if there was a loan
- Valid insurance and PUC
- Service history and the second key
- Seller's ID matching the RC name
- No pending challans or tax dues on the Parivahan portal
Process with us
- Share the RC and photos; we get an indicative valuation in a day.
- Loan sanction in 2 to 3 working days.
- Lender pays the seller directly; RC transfer with hypothecation to the lender is filed at the RTO.
One caution: never pay the full amount to a private seller before the RC transfer papers are signed. A token amount with a written agreement is enough to hold the car.
Have a question about your own case? Talk to us, the consultation is free.