Sundaram Finance Used Car Loan

Features of Sundaram Finance Used Car Finance

• Up to 85% finance for used vehicles: Sundaram Finance gives up to 85% of the used car value as loans. Customers can purchase cars belonging to famous brands and apply for finance with Sundaram Finance.
• Maximum Funding available based on the value of the car. Sundaram Finance ensures that you get the maximum loan amount so that you can fulfil your dream of buying a car. You can get loans for used cars that are up to 7 years old.
• Fast turnaround time: Sundaram Finance Used Car Finance is instant. The submitted documents being satisfactory, the loan is approved instantly and the amount is also disbursed at the earliest.
• Attractive Interest Rates: Sundaram Finance offers competitive interest rates for its used car finance. The interest rate is currently at 12.5%.
• Simple documentation: Sundaram Finance wants to make sure that the customers enjoy a hassle-free loan processing experience. They process the loan with simple documentation in a transparent manner to ensure ultimate customer satisfaction.
• Sundaram Credit Protect - Credit Life Cover: This unique feature is not available with many Used Car products. Under Sundaram Credit Protect Scheme, Insurance cover is offered to Individuals and Proprietors availing finance for Assets. This Credit Protect facility covers both life as well as personal accidents.

Eligibility criteria to avail Sundaram Finance Used Car Loans

• Salaried employees and self-employed individuals can apply for the loan.
• Used Car Finance is also available for Partnership firms, private companies, and public companies.
• Salaried employees must be between the ages of 21 years and 55 years when they apply for the loan.
• Self-employed individuals must be between the ages of 21 years and 65 years when they apply for the loan.
• Salaried employees must have at least 3 years of work experience.

What are the documents to be submitted for Sundaram Finance Used Car Loans?

The general documents required for a used car loan are: 

• Registration Certificate Copy
• Insurance copy
• Car Valuation document

Other documents for Salaried Individuals: 

• Latest passport size photo
• KYC: As per RBI norms  
• Bank Statement: Last 6 months  
• Income Proof:  Last 3 months Salary Slip/Form 16    
• Repayment Mode –NACH / Direct Debit / Full PDCs
• Asset Proof (Any One): House tax Challan / Patta copy / Copy of sale deed / Housing Co-op Society bill

Other documents for Self-Employed Individuals: 

• Latest passport size photo
• KYC: As per RBI norms  
• Bank Statement: Last 6 months  
• Income Proof:  Previous 2 years’ complete financial statement/audit report along with income tax returns
• Repayment Mode –NACH / Direct Debit / Full PDCs
• Asset Proof (Any One): House tax Challan / Patta copy / Copy of sale deed / Housing Co-op Society bill

Other documents for Corporates: 

• Latest passport size photo
• KYC: As per RBI norms  
• Bank Statement: Last 6 months  
• Income Proof:  Previous 2 years’ complete financial statement/audit report along with income tax returns
• Repayment Mode –NACH / Direct Debit / Full PDCs
• Personal Guarantee from all Partners, Partner Authorization Letter and Partnership Deed
• Personal Guarantee from all Directors, Board Resolution and Memorandum & Articles of Assn.
• Personal Guarantee from all Trustee / Society Members, Trust Deed / Bylaws and Resolution

How can I apply for Sundaram Finance Used Car Loan?

• You can walk in to the nearest branch of Sundaram Finance and apply for a used car loan.
• You can use the ‘Request a Call Back’ feature to receive a call back from an authorized representative.
• They will help you with additional details on the loan product and resolve any queries you might have.

What are the factors affecting my eligibility criteria for Sundaram Finance Used Car Loan?

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

Credit score– Credit Rating is an important metric used in loan processing. Your credit score shows your creditworthiness. Higher credit score means higher probability of your making timely repayments. If you have a good credit score there are more chances of receiving better terms for your loan. But, if you have a poor credit score, your chances of being approved for a car loan will dwindle. You may end up with a higher interest rate and lower loan amount.

Age – You must be at least 21 years old to become eligible for an Sundaram Finance 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. So, banks prefer applicants with a lower age compared to once nearing their retirement.

Income level– Income is an important parameter to approve your loan. Higher the income, easier your loan approval! 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 one’s income. Banks look into your income to debt ratio to determine your repayment capacity. If your salary is less than the requirement for the qualifying benefit, you might not qualify for the full amount of 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 Sundaram Finance 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:

Improve your Credit Score – Credit Score plays an important role in your loan application. Increasing your credit score is a very important step towards bettering your chances of getting approved for car loans. You can boost your credit score in simple ways; you can pay off your unpaid bills on credit cards, you can clear any debts that have been outstanding for quite some time, make sure that your credit score is accurate, if not, you can get it corrected from the relevant credit bureau. 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.

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. Adding their income to the application increases the income eligibility, giving you a higher loan amount and better interest rates.

Higher Down payment: If you can offer to make a higher down payment than the required minimum, the banks will give more consideration for your application. Higher the down payment means lower loan amount, which translates into lower liability. With the lower loan amount, the EMIs are also low and the customer is comfortable repaying them on time. So, banks prefer applicants who are ready to make a higher down payment.

Sundaram Finance Used Car Loans FAQs: