Used Car Loan

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Used Car loan

What is used car loan

Used cars, second-hand cars or pre-owned cars have become popular amongst consumers nowadays. A used car loan which allows a buyer to pay for the car through monthly installments rather than making a payment one time. The buyer has got to pay a part of the value as deposit whereas rest are going to be financed by the loaner. Car loan make Makes simple to shop for car: – As several banks give up to 100% finance on ex-showroom value, you don’t have to wait long to buy your dream car.

What are the Benefits and Features of Used Car Loan

Flexibility to settle on the tenure:– Banks supply consumer loan for tenure of up to seven year.You have the flexibility to choose the tenure as per your convenience.

Loan for getting used car:– several banks offer loan on used car recently.Although the rate of interest are going to be more than the rate of interest on new car loan and also the loan-to-value (LTV) ratio are going to be under the new car loan.

Interest rate can be negotiated:– Unlike home loan in case of car loan you have the flexibility to negotiate the interest rate with your lender if you have a good credit score and have good relationships with the bank.

No collateral required:– You don’t have to be compelled to place any collateral to avail the consumer loan as your vehicle can act as a security with the bank and just in case you fail to create the payment, the bank has the rights to seize the vehicle and sell it off to recover the funds.

Flexibility to choose the payment mode:– You can choose to pay through post-dated cheques or use the auto debit facility where your equated monthly installments (EMIs) will be automatically deducted from your bank account.

Flexibility the fastened or floating rate of interest option:– you'll choose the kind of rate of interest whether or not fastened or floating.The interest rate will depend on the type of interest rate you are choosing.

Eligibility Criteria for Used Car Loans

The following list is a generalized view on the commonly expected requirements that form the basic eligibility criteria for Used car loans. Banks, at their own discretion, may require additional proof and/or documentation to establish your eligibility for the said loan.

The applicant must be age minimum 21 years nor be older than 65 years. Must be a salaried individual, a public sector undertaking, a proprietorship or partnership firm, , a private company, person currently employed in the agriculture sector or dependent industries.

In order to qualify for an old car loan, and if the applicant is a salaried individual, the net annual income of the said borrowor applicant and/or co-applicant together should not be lesser than Rs.3,00,000*.

If the applicant is a self-employed individual, proprietorship or partnership firm, then the net profit or total taxable income of said applicant and/or co-applicant together should not be lesser than Rs.4,00,000* per annum.

(* Numbers may vary for different banks)

Top Used Car Loan Providers in India 2019

  • 13.75% to 16% based on the age and segment of the vehicle (Rack Interest Rate)
State Bank of India (SBI)
  • Loyalty Car Loan Scheme: (Certified Pre-Owned Car Loan Scheme) Men – 10.80% per annum; Women – 10.75% per annum
  • Certified Pre-Owned Car Loan Scheme – 11.05% to 12.05%
  • 14.25%
Bank of India (BOI)
  • 1 Year MCLR + 0.85%
Federal Bank
  • 15%
Axis Bank
  • Up to 36 months repayment tenure – 15% to 17% Repayment tenure exceeding 36 months – 15% to 17%

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