CARS24, India’s auto-tech company, introduces an offering where customers can avail loan against their existing car. Traditionally, the customer gets the financing option only when they are buying a new or pre-owned car. This unique loan product will allow customers to get a loan on their pre-owned car. As per CARS24’s research, the number of customers selling the car due to liquidity crunch has doubled as compare to pre-corona times. Tapping on to this opportunity, CARS24 will now give loans to those customers who do not wish to sell their cars otherwise. This will help customers to retain the ownership of the asset and at the same time get funds against it for their personal needs. Currently, this service is available in Delhi-NCR, but it can be availed by the customers in Bangalore and Hyderabad by next month – August. CARS24 has aggressive plans to launch this offer in other metros by the end of FY 2020.
Customers, applying for a loan against cars, will get benefited with features like same day loan approval and disbursement, up to 100% funding against the car’s latest value (for vehicles up to 12 years old), loan initiation with minimal documentation (PAN, Address Proof & Bank Statement) and additional benefits like the installation of anti-theft device & easy foreclosure options.
Sharing the announcement, Vandita Kaul, Vice President, CARS24 said, “We have witnessed a lot of cases where people have shown interest in selling their cars to fulfill their financial needs. Knowing that owning a car is becoming a necessity these days, we came up with an initiative so that our customers can secure funds and retain their assets at the same time. The response, so far, has been overwhelming and we intend to extend our services across metros in the next six months. Till now, we have disbursed loans worth INR 35 Lakhs to our customers within this vertical and hope to strengthen this portfolio exponentially from here.”
To avail of this service, customers can either visit the nearest CARS24 outlets to apply for a loan or give a missed call to a designated number. As a standard procedure, their cars will undergo the inspection process, basis which, the financial and loan value of their cars will be estimated. Customers can avail up to 100% of funding against their car’s basis their profile and previous credit history.
CARS24 is witnessing the rapid growth trajectory and is constantly introducing new services to streamline the pre-owned vehicle industry. The business has rapidly recovered to more than 90% of pre-COVID volumes and recently, CARS24’s lending arm has also secured funding.