Can college students get approved for used car loans?

Getting a used car loan approval as a college student may seem complicated, but it is not impossible if you meet certain eligibility criteria.

• Most lending institutions today have customised loan offerings even for students to help them buy a used car. The key factors they consider are your repayment capacity, credit score, co-applicant profile, college details, etc.
• If you have a good academic record, a clean credit history without defaults or a trustworthy co-applicant like a parent, your chances of getting the loan approved increase. Certain banks or Non-banking Financial Companies (NBFCs) also have tie-ups with specific car dealers and can get you pre-approved offers.
• To apply, you need basic documentation such as an identity proof, bank account details, address proof, and college ID card. The application process is quick and hassle-free through online forms or apps.
• Some students also opt for secured car loans by pledging other assets, such as fixed deposits or insurance policies, which allows them to easily get lower interest rates and bigger loan amounts.
• While used car loan interest rates for students are slightly higher due to higher risk, many banks or NBFCs allow customised Equated Monthly Instalment (EMI) plans that match your in-hand stipends or scholarships received. This makes repayments affordable.