Used car loans: why the sanction is lower than the price
Lenders fund a percentage of their valuation, not the price you negotiated.
3 min read
What you need to know
The lender's valuer assesses the car on make, model year, kilometres, service history and condition. Funding is 85-90% of that number, and any gap between valuation and sale price is your own contribution.
Verify insurance history for accident claims and check that the RC is free of an existing hypothecation before paying any advance to the seller.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Frequently asked questions
What is the main takeaway from “Used car loans: why the sanction is lower than the price”?
Lenders fund a percentage of their valuation, not the price you negotiated.
What should I check before acting on this loan basics guide?
Review the practical points in the guide against your income, obligations, documents and lender requirements.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.