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Buying a used car? We help you secure loans for pre-owned vehicles at attractive rates. Apply now to learn more.
Take a look at some of the banks that can provide you with these loans. Interest rates, processing fees, and EMIs are all factors to consider.
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Used Car Loan Interest Rate Comparison for All Banks:
| Lender | Interest Rate | Repayment Tenure |
|---|---|---|
| Tata Capital | Starts from 14.99% p.a. | 5 years |
| Punjab National Bank | Starts from 9.80% p.a. | 5 years |
| Axis Bank | 13.55% p.a. - 15.80% p.a. | 5 years |
| Mahindra Finance | Contact the bank | 5 years |
| State Bank of India | 11.50% p.a. - 15.00% p.a. | 5 years |
| HDFC Bank | 13.75% p.a. onwards (Rack Interest) | 7 years |
| Bajaj FinServ | Contact the bank | 5 years |
| Kotak Mahindra Bank | Contact the bank | 5 years |
| ICICI Bank | 11.25% p.a. onwards | 7 years |
| Karur Vysya Bank | 11.25% p.a. onwards | 7 years |
| Federal Bank | 16.30% p.a. onwards | 7 years |
Here are the key benefits and features of a used car loan:
Things to Consider When Applying for a Used Car Loan:
The eligibility criteria that must be met for salaried employees and self-employed individuals will vary and are mentioned below:
| Particulars | Salaried Individuals | Self-employed individuals |
|---|---|---|
| Age Limit | 21-65 years | 25-65 years |
| Income | At least Rs.15,000 per month | Must make a profit of at least Rs.1.5 lakh in a year |
| Income Status | You must be working in the current organisation for at least a year | Must be in the same line of business for at least 3 years |
The list of documents that must be submitted when applying for a used car loan is mentioned below:
| Particulars | Salaried Individuals | Self-employed individuals |
|---|---|---|
| Identity Proof |
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| Address Proof |
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| Income Proof |
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Follow the steps to apply for a used Car Loan:
| Online | Offline |
|---|---|
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Here are some essential steps to follow when buying a used car:
Inspect the Car: Make sure the car is thoroughly inspected. A mechanic can help you check for any issues, which can be used to negotiate the price. Test drive the car in a low-traffic area to detect any vibrations.
Verify the Documents: Carefully examine the insurance papers and registration certificate. Ensure the engine number and chassis number on the car match the documents. Check if the car has been involved in any accidents.
Review the Vehicle History: Before purchasing, check the car’s history online for any accidents or service issues. This provides valuable insights into the car’s condition and reliability.
Transfer the Registration Certificate: After purchase, ensure the Registration Certificate (RC) is transferred to your name. If the car is registered in another state, you’ll need a No Objection Certificate (NOC). If the previous owner had a loan on the car, an NOC is also required.
Transfer the Insurance: Immediately transfer the car insurance policy to your name. The policy becomes void if it remains in the previous owner’s name, even if the RC is in your name.
Service the Car: Have the car serviced before using it. Address any rust issues, change the fluids, and clean the car thoroughly before its first use.
The Equated Monthly Installments (EMIs) that you will pay will depend on a few key factors.
The higher the loan amount, the higher your EMI will be. Similarly, the shorter the loan tenure the higher the EMI.
To calculate the EMI on your car loan, you can use the formula:
EMI=P×R×(1+R)N(1+R)N−1\text{EMI} = \frac{P \times R \times (1+R)^N}{(1+R)^N – 1}
where:
Manual calculations can be error-prone, complex, and time-consuming, so using an online personal loan EMI calculator is preferable. This calculator requires only a few basic details such as the interest rate, loan amount, and loan tenure.
Once these details are entered, the EMI amount is calculated instantly. Additionally, the calculator provides the total interest amount and an amortization schedule for easy reference.
Yes, certain lenders require a down payment when you take out a used car loan.
No, security or collateral is not needed for a used car loan. The car itself serves as the security.
With a low credit score, your loan application may be rejected or you might face higher interest rates.
Yes, you can apply for a used car loan with a co-applicant.
Yes, many lenders impose a penalty for foreclosing the loan early.
Yes, some banks offer loans covering 100% of the car’s value.
Certain banks offer loans up to Rs.2.5 crore for a used car purchase.
