Your step-by-step guide to pre-owned car financing

Purchasing a second-hand car is a great way to own a vehicle in your budget. However, if you don't want to pay upfront, you will require a used car loan to facilitate it. That is where a used car loan comes in—providing you with access to flexible lending to buy your preferred automobile without hampering your savings.

In this guide to used car loans, we walk you through all that you must know—ranging from what a pre-owned car loan is to how IDFC FIRST Bank makes it as easy, quick, and borrower-friendly as possible.

What is a pre-owned car loan?
 

A second-hand car loan is a borrowing facility through which you borrow funds to purchase a used or second-hand car. You pay back the loan in monthly payments for the tenure that has been opted for along with the interest applicable. Such loans are generally extended to salaried as well as self-employed professionals and usually come with the facility to refinance a vehicle you already own.

At IDFC FIRST Bank, used car loans are structured to provide instant approvals, have minimal documentation requirements, and offer competitive terms.

Features of IDFC FIRST Bank’s used car loans

IDFC FIRST Bank's used car loans are designed around convenience, affordability, and speed. Here's why they stand out:

• Loan amount: IDFC FIRST Bank provides loan amounts of ₹1 lakh to ₹2 crore, based on your requirement and eligibility.
• Tenure: You can opt for a tenure that ranges from 12 to 84 months, with repayment planning being both cost-effective and easily manageable.
• Interest rates:The bank provides interest rates beginning as low as 11.99% p.a. for repurchasing a used car while keeping your EMIs low.
• Loan value: You are eligible for 100% of the car value with repurchase loans. 
• Process: With the online loan process, you can obtain an instant approval of up to ₹15 lakhs in 15 minutes* (approval time may vary based on applicant profile, documentation, and internal credit policies)

Eligibility criteria
 

IDFC FIRST Bank makes the eligibility process inclusive and simple -

• For salaried individuals, the candidate should be between 21–65 years of age, with a minimum annual income of ₹2.4 lakh and work experience of at least 1 year.
• For self-employed individuals, the age limit is set between 21–65 years, with a minimum of two years business continuity and an annual income of ₹2 lakh or more.

Documentation

Though the bank offers loans without financial documents to most applicants, typical documents are:

• Valid proof of ID such as PAN card or Aadhaar card
• Address proof like driving license or electricity bills
• Income documents (if necessary): Salary slips, bank statements, or ITR
• RC book and insurance copy of the vehicle

Step-by-step loan process
 

Getting a used car loan from IDFC FIRST Bank is quick and easy:

• Validate your mobile number via an OTP.
• Enter your personal information such as PAN, DOB, and gender.
• Enter your address and job information.
• Choose the loan amount and the vehicle you want to buy or refinance.
• Get a callback from a loan officer for the final steps.

Conclusion
 

If you're looking to purchase a second-hand vehicle, this guide to used car loans is where you begin. IDFC FIRST Bank provides everything you look for in a contemporary loan experience—competitive interest rates, instant approvals, flexible tenures, and a 100% LTV. Whether you're a first-time buyer or want to release funds from an existing vehicle, a used car loan with IDFC FIRST Bank is a smart, secure, and hassle-free option.