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Introduction

AU Small Finance Bank is an NBFC, headquartered at Jaipur, Rajasthan and in the service of Indian public for the past 2 decades. They believe in innovative banking solutions to their customers. They have a wide network of 625 touch points serving more than 1.5 million customers.

AU Small Finance Bank offers loans to purchase any hatchbacks, entry level sedans to luxury sedans and MUVs/SUVs of your choice. The bank has a simplified and transparent loan process with hassle free documentations and customized loan offers.

AU Small Finance Bank Used Car Loan Details

Au Small Finance Bank Used Car Loan

Interest Rate (Monthly reducing balance)

Up to 30%

Processing Fees

Up to 2% of Loan Amount

Loan Tenure

6 months to 5 years

Pre-closure Charges

5% of principal outstanding (plus applicable tax) 

if repaid within 1 year. 

4% (plus applicable tax) afterwards

Guarantor Requirement

No guarantor required

Features of AU Small Finance Bank Used Car Loan

Customized Loan Offers: AU Small Finance Bank Used Car Loan is based on individual needs and eligibility. This provides a better loan product to cater to the exact needs of the customer rather than a generalized product.

Easy Hassle-Free Documentation: AU Small Finance Bank Used Car Loan makes sure that you go through a simple documentation process to make your loan process much more customer friendly.

Quicker Processing Times: AU Small Finance Bank Used Car Loans are normally sanctioned within 48 hours (excluding holidays) after submission of all the required documents. However, it may depend on the customer support in assessment of loan eligibility.

Simplified Process: AU Small Finance Bank offers a simple, transparent process for their loans. The support team will handhold you through the entire loan application process to make the loan process pleasant for you.

Wide Network for enhanced support: AU Small Finance Bank has a wide network of banking touchpoints spread across the country. They have around 600 banking touchpoints in more than 500 cities so that the bank is just a few steps away for all the required assistance and support.

What are the eligibility criteria to apply for AU Small Finance Bank Used Car Loan?

AU Small Finance Bank Used Car Loan can be availed by the following persons:

  • Individual
  • Non-individual (Private Limited, Public Limited, Partnership Firm, Proprietorship Firm, Co-operative societies, Trust and Hindu Undivided Family)

Age Eligibility: 

The age criteria are as under:

  • Personal Vehicle: 18 years and above
  • Commercial Vehicle: 21 years and above
  • Heavy Commercial Vehicle: 24 years and above

Other conditions: 

The loan can be availed by individuals who are from rural, semi-urban and urban areas.

Individuals who are self-employed or salaried

Individuals who are new to credit and those with established credit history

Individuals belonging to Agri and Non-Agri background

Individuals with established cash flow by way of salary income or business income of self-employed professionals

How to Apply for a AU Small Finance Bank Used Car Loan?

  • You can click on the ‘Apply Now’ button on the car loan page. Fill in the online application form and a representative from the bank will get in touch with you
  • You can apply for a loan by calling the customer call center on the number listed on the website.
  • Existing customers can also get in touch with their Relationship Manager/Personal Banker to know more.
  • Write to the customer care department via email or visit your nearest AU Bank branch

Documents required to apply for AU Small Finance Bank Used Car Loan

  • Loan application form
  • Identity proof
  • Address proof
  • Other relevant documents

Schedule of Charges:

Interest Rate for Used Vehicle

Up to 30% p.a.

Loan Processing Charges

Upto 2% of

Documentation Charges

Up to Rs. 5000

Stamping Charges

As per State's Stamp Act

Overdue Interest

3% per month on outstanding amount 

Prepayment/ Foreclosure charges

5% of Principal Outstanding, if paid before 12 month

3% of Principal Outstanding, if paid after 12 month 

Part Foreclosure

Not Allowed

Collection Charges

Rs. 600 per visit

Cheque/ SI/ACH/ECS Return Charges

Rs. 500

Issuance of Duplicate NOC

Rs. 500

Statement of Account

Rs. 500

Duplicate Amortisation/Repayment Schedule

Rs. 500

Swap Charges (Replacement of PDC/Change of Bank)

Rs. 1000

Foreclosure Statement Charges

Rs. 500

Change in Instalment Due Date

Rs. 500 plus difference period interest (if any)

Duplicate Copy of Property/Loan Document

Rs. 1000

Valuation Charges for Used/Refinance Vehicles

Up to Rs. 1000

Special NOC without removing of Hypothecation

Rs. 500

Legal/ Sarfeasi/Incidental Charges

At Actuals

Repossession Charges

Up to Rs. 10,000

Tele Collection Charges

Rs. 40

Cheque/Disbursement/Loan cancelation

Rs. 1000 (within 7 days of cheque issue date)

Rs. 1000 plus interest up to cancellation Period

What are the factors affecting my eligibility criteria for AU Small Finance Bank Used Car Loan?

There are a number of factors that impact your AU Small Finance Bank Used Car Loan Eligibility. Few of the main factors are:

Credit score – Credit Rating is a metric that assesses your creditworthiness. If you have a good credit score there are more chances of receiving the loan quicker. But, if you have a poor credit score, your chances of being approved for a car loan will dwindle.

Age – You must be 21 years old to become eligible for an AU Small Finance Bank Used Car Loan. You also need to make sure that you pay off all of your loan by the time you retire. Therefore, the more years of working years you have left, the greater the chances of obtaining the loan would be.

Income level– One has to remember that they may not get a loan for the full value of the vehicle mentioned in the application form. The amount of the loan to be approved depends on income. If your salary is less than the requirement for the qualifying benefit, you can also apply the salary from your spouse or immediate family member to qualify for the loan.

Existing Liabilities – Your eligibility is affected by current debts & liabilities. Your debt-to-income ratio is a significant factor in determining your eligibility while processing your loan. When you have another loan, like a home loan or an educational loan, your chances of being approved for a car loan would be less.

How to improve your eligibility for AU Small Finance Bank Used Car Loan?

If you feel that your application might get rejected for the loan, you can try these simple steps to improve your chances:

Reduce your existing liabilities: To boost the chances of securing a loan, the first step is to pay off existing debt. You need to take debt management seriously, and clear your past liabilities. This will raise your debt-to-income ratio, and increase your car loan eligibility.

Add Co-applicants – Adding another earning family member as a co-applicant gives a better chance in increasing the chances of being approved for the car loan. As your co-applicant, you can add your spouse, father, mother or siblings, even if the car is not purchased on their name.

Improve your credit score – Increasing your credit score is a very important step towards increasing your chances of being approved for car loans. To boost your score, you can pay off your unpaid bills on credit cards. Closing a card can also have an effect on your credit limit, and doing so can be risky. To earn a good credit score, you need to keep your unpaid balance to the minimum to have a healthy revolving credit.

AU Small Finance Bank Used Car Loan FAQs

1. Which documents will be received by the applicant at the time of closure of the loan?

Once the loan is closed, the customer will receive a No-objection Certificate (NOC) addressed to the RTO & insurance endorsement cancellation letter addressed to your vehicle insurance company.

2. Do existing customers receive any additional benefits or offers?

Existing customers and their referrals are provided additional benefits in terms of documentation requirement, rate, fees and loan amount.

3. Are vehicle accessories funded by the Bank?

AU Small Finance Bank Used Car Loan funds standard fitment supplied by manufacturers for different variants. Additional accessories are not funded.

4. Is a driving License mandatory to avail a vehicle loan?

Driving license is not a mandatory document for availing loans on vehicles.

5. Do I need to provide a collateral security to avail the loan?

Normally, the vehicles financed by AU Small Finance Bank are lien marked and serve as a collateral security. Additional collateral security may be required based on the loan amount or the vehicle to be financed.

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