A car is a dream for many middle families in India. Individuals opt for second hand cars as they find the same model of new cars beyond their financial reach. Easy availability of second hand vehicle loans has increased the car sales in India. Many Indian Financial Institutions offer loans for used cars. Every lending Institution has its own eligibility conditions to sanction a loan for a vehicle.

Many banks in India offer faster loan approvals with minimal documentation for second hand cars. Once you choose the car that you want to purchase, next step is to contact the bank for four-wheeler loan. Contact as many financial institutions as possible. Collect the schemes offered by them. Compare the schemes and negotiate for best interest rate. Indian lenders offer floating interest rate and fixed interest rate for four-wheeler loans. Decide based on low interest rates, easy repayment options and total transparency.

 Used car finance should cover vehicle registration charges, insurance, road tax and other car accessories. Always choose a longer repayment period. Some Indian Banks levy an administrative charge or processing fees for car loans. Check for those hidden costs. Few finance companies ask the consumers to pay advances Equated Monthly Installment to reduce the loan amount. In that situation, you may have to pay a margin amount to the loan provider.

Once you decide the banker, you have to apply for a car loan. Fill the loan application form. You need to include passport size photos, signature identification from a banker, PAN card copy, address proof, salary slip, Income Tax Returns, Indian voter Identity card, Driving license, etc. along with application. Lender representative will visit your house and collect the documents.

Finance Company field investigator will counter to check the facts submitted in the document. You need to clarify the doubts that investigator might have. Once the bank is satisfied with your documents, the loan is approved. You will get the loan amount through check or demand drafts. You can move ahead to purchase a second hand car.