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Introduction

Buying a used car is a preferred option for many Indians. Banks have earmarked a considerable amount of their loan portfolio towards this segment. Buying used cars is affordable. Banks also offer attractive interest rates and repayment tenures to purchase pre owned cars.

IndusInd Bank offers financing of up to 90% of the car value to buy your preowned car now. They have a hassle free documentation process with attractive interest rates.

Features of IndusInd Bank Used Car Loans

Indusind Bank Used Car Loan
  • Loan up to 90% of the value of the car: Applicants can get up to 90% of the car value as a loan so that you can buy that car model you have always wanted.
  • Flexible loan tenures of up to 5 years: IndusInd Bank offers repayment tenure of up to 60 months for used car loans. This gives lower EMIs to put less burden on your monthly cash flow.
  • Attractive interest rates: IndusInd Bank used car loans come with attractive interest rates based on your eligibility criteria. Existing customers get additional benefits like lower interest rates and discounted processing charges.
  • Hassle-free processing: IndusInd Bank used car loans come with simple documentation & a super quick approval process. This puts the loan amount in your hands as early as possible to fulfill your dream.
  • Do-Ka-Chaar loans: IndusInd Bank has a special offer, ‘Do-ka-Chaar’ loans, that allows you to upgrade your two-wheeler to your dream four-wheeler with the used car loans.
  • Eligibility: These loans can be availed by salaried and self-employed individuals.
Loan AmountInterest RateRepayment TenureProcessing Fee
Up to 90% of car value12 – 18%Up to 5 years0.50% of the loan amount subject to a minimum of Rs.2500

Who all are eligible to apply for IndusInd Bank Used Car Loans?

IndusInd Bank Used Car Loans can be availed by Salaried and Self-employed Individuals.

For Salaried Individuals:

Minimum Age: 23 years
Maximum Age: Retirement age
Minimum Income: Rs.2.5 lakhs per annum
Employment stability: Minimum 1 year in current employment
Residence Stability: 1 year in the current residence and at least 2 years in the same city

For Self Employed Individuals:

Minimum age: 23 years
Maximum age: 65 years
Minimum Income: Rs.2 lakhs per annum as per latest income tax returns
Employment stability: Minimum 3 years of experience in the current line of business
Residence Stability: 1 year in the current residence and at least 2 years in the same city

For IndusInd Bank customers:

Indus More: Top-up loans for existing car loan customers.

What are the documentations I need to submit to avail IndusInd Bank Used Car loan?

The basic documents required to be submitted are: 

  • Application Form
  • KYC Documents
  • Car valuation documents

Supporting documents required are: 

Asset Documentation:

  • RC copy with original verified seal
  • Valuation report & Vehicle inspection report
  • Copy of Insurance Policy

Income Documents for Salaried Individuals:

  • Form 16
  • Last 3 months' salary slips
  • Latest Income Tax Returns
  • Bank Statements

Income Documents for Self Employed Individuals:

With Income Proof:

  • Latest Income Tax Returns
  • Balance Sheet for the previous financial year
  • 3 months' Bank statements
  • Business Incorporation Certificate

With No Income Proof:

  • 6 months' bank statements
  • Business incorporation certificate/business continuity proof for last 3 years
  • Owned residence stability proof

With No Income Proof (Agricultural):

  • Form J or 'Patta' copy of minimum 3 years (land document)
  • 6 months' bank statements
  • Owned residence stability proof

How do I apply for an IndusInd Bank Used Car Loan?

The simplest way of applying for an IndusInd Bank Used Car Loan is by walking in to your nearest branch of the bank. You can also submit a form on the website to receive a call back from their loan executive. Or you can call their customer support to enquire more about the loan.

You can click on the ‘Apply Now’ button on the website, fill in the required details and a loan executive from the bank will get back to you.

What are the factors affecting my eligibility criteria for IndusInd Bank Used Car Loan?

There are a number of factors that impact your IndusInd 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 IndusInd Bank Used Car loan. You also need to make sure that you pay off all of your loan by the time you are 65 or before 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 IndusInd 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.

IndusInd Bank Used Car Loans FAQs:

1. How can I check my IndusInd Bank Used Car loan status?

To track the status of your IndusInd Bank Used Car loan, you can call the customer care number listed on the website. The customer care representatives will be able to check the status of your loan application using the reference number and let you know.

2. What is the minimum and maximum tenure for which I can take a used car loan from IndusInd Bank?

The minimum tenure for which you can get an IndusInd Bank used car loan is for 12 months and the maximum tenure is 60 months.

3. What is the processing fee applied on IndusInd Bank car loans?

The processing fee for used car loans offered by IndusInd Bank is 0.50% of the loan amount, subject to a minimum of Rs.2500.

4. What are the documentation charges for IndusInd Bank Used Car loans?

The documentation charge for IndusInd Bank Used Car loans is up to Rs.2000 per vehicle.

5. What are the loan handling fee charges for IndusInd Bank Used Car loans?

The loan handling fee for IndusInd Bank is up to 5% of the car loan amount.

6. In case of car loan cancellation, how much does IndusInd Bank charge?

In case of car loan cancellation, IndusInd Bank charges Rs.1500 per case.

7. Does IndusInd Bank charge any fee for a credit report?

Yes, IndusInd Bank charges Rs.50 for getting your credit report.

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