How to Get Loan Against Your Car? Eligibility, Documents, Procedure and All You Need to Know

The pandemic has brought about a lot of changes along with a set of challenges, one of them being the job losses, pay cuts, lowered wages, etc due to the current economic conditions. If you’re going through a cash-crunch post the lockdown, but are hesitant about taking a new loan, then taking a loan against your car with low-interest rates could be a smart alternative. CARS24 now offers a loan up to 100% of the current value of a car with interest rates starting as low as 14 percent.

For starters, How can I get cash against my car? 

Most of us have heard of Loan against property, gold, FD and so on, but is it a good option to mortgage your property, pledge gold, or an FD? We all know how complex the process can get and not to forget the high-interest rates they come with!

You would be surprised to know that your car can also help your financial needs in a crisis. The process is much simpler and faster than other unsecured loans.  You can easily take a loan against your car with CARS24 Financial Services, a subsidiary of CARS24 Private limited. 

If you're considering taking a loan against your car, this step-by-step guide will tell you all you need to know to make an informed decision.

How to take Cash Against your Car

1. What is the eligiblity criteria for loan against the car?

Your credit score is your strongest asset to get the best offers from a variety of lenders. In order to qualify for the best interest rates, you'll need a good credit score. You also want to make sure there aren't any errors in your credit report.

Typically, lenders have criteria based on the age of the car and they do refinance cars older than 10 years.

2. Estimate your car's loan-to-value ratio

Cars24 has the technology to evaluate the most accurate value of your car by using market demand, latest trends, etc, and thus offer you the maximum available loan against your car. This will help you get the maximum amount of loan disbursed against your car.

If you have a car in good condition, that car can be a savior for you and help in your financial needs during this unprecedented COVID crisis.

3. What will happen to my old loan? 

If you have a running loan, a loan against your car lender will close your older loan and give you the remaining loan amount. 

CARS24 works with the banks to help you close the loans faster and get the NOC (No-Objection Certificate) from the banks. This will help you get the loan amount at the earliest. 

4. Gather the necessary documents 

If you decide that you need a loan against your car, you'll want to start collecting the documents just reach out to the lender.  Here is the list of documents that you will require to avail a Loan against your car.

• PAN Card
• Address Proof 
• Car RC 
• Car Insurance 
• Bank Statement

Once you've gathered the necessary documents, it's time to start the loan-shopping process.

5. Shop for the best deal

As with any type of loan, it's important to get quotes from multiple lenders. You can start by getting quotes from an online lender. But you may want to check with small local banks and credit unions as well. 

In general, you shouldn't worry about multiple inquiries showing up on your credit report. In many cases, auto loan lenders can use a soft inquiry to give you a rate quote and wait to perform a hard inquiry until you actually apply for a loan. 

Apply for loan against car with CAR24 and get the cash within 2 days!

The bottom line

Loan against Car is one of the best options to manage your financial needs in these times, you get to keep your car and get the cash!

If you're interested in a Loan Against Your Car from CARS24, Contact: 8433921317