Used Car Loan

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Buy your dream Car

Rates as low as 7.35%*
Up to 100% Funding
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Used Car Loans 2020

Lender Interest Rates Tenure 
ICICI Bank 10.75% – 12.75% 5 years
SBI 9.90% – 10.90% 7 years
HDFC Bank 10.50% – 12.50% 7 years
Punjab National Bank  Starts from 7.80% 5 years
Canara Bank 9.45% to 10.25% 5 years
Kotak Mahindra 8.70% – 10.25% 5 years
Axis Bank 11.50%-12.50% 5 years
IDBI 9% – 10.75% 5 years
TATA Capital 15% onwards 5 years

Used Car LoanAbout Used Car Loan

Having your own car is a dream for many. The process, however, can be a tough one depending on various factors. At times poor bank credit history and low income become a hindrance in buying a car. In such a situation an auto loan can come to your rescue.

There are many leading banks and NBFC’s throughout the country that are offering loan for used cars at reasonably low-interest rates. Owning a vehicle can be a dream come true along with the comfort of attractive loans at a pocket-friendly rate of interests for used cars. With us, one will get hassle-free loan approvals, convenient EMI options, and lowest interest rates.

Before applying please check

  1. Documents
  2. Eligibility
  3. Features
  4. Charges
  5. Interest Rate

Features and Benefits of Used Car Loan:

  1. Funding for up to 85% of the car’s on-road value.
  2. Choose any car model available in the country.
  3. Flexible repayment options are available (12 to 60 months).
  4. Car model should not be more than five years old 
  5. Attractive, lowest possible interest rates
  6. Loan approvals and amount disbursal within 24 hours
  7. Hassle-free loans
  8. Easy, simple and minimum documentation

Avail your Used Car Loan with Dialabank and get personalized assistance for your entire process.

Top Bank Providing a Used Car Loan

SBI Bank Car Loan provides the overdraft facility and the provision of optional SBI life insurance cover.

SBI Bank Car Loan
Car Loan Amount 85% (on-road price)
Tenure Up to 7 years
Interest Rate 9.90% – 10.90%
Characteristics Interest is determined on the reducing total amount.
  No advance EMI payment applicable.

Axis Bank Car Loan

Axis Bank Car Loan
Car Loan Amount 85% (ex-showroom price)
  95% (on select models)
Tenure Up to 7 years
Interest Rate 11.50%-12.50%
Characteristics One of the best interest rates on car loans offered PAN India.
  Axis Bank salary account holders can avail special schemes.
  Loans amount is Rs.1 lakh onwards.

HDFC Bank Car Loan

HDFC Bank Car Loan
Car Loan Amount 85% (on-road price)
Tenure Up to 7 years
Interest Rate 10.50% – 12.50%
Characteristics Interest is calculated on the reducing balance every month.
  No EMI payment in advance required.

ICICI Bank Car Loan

ICICI Bank Car Loan
Car Loan Amount 100% (ex-showroom price)
Tenure Up to 7 years
Interest Rate 10.75%-12.75%
Characteristics Easy application, approval as well as a disbursement for the loan.
  Comfortable online application.

Car Loan for a Used Car vs a New Car

used car loan A car loan can be used to finance any car, be it used or a new one. A used car is not only cheaper, but the car loan amount required will is significantly lower, and so are the car loan EMIs. But a used car also requires a higher upkeep cost and there might be additional re-registration costs associated with it, which is not covered under a car loan.

Mentioned below are the benefits of using a car loan for a pre-used car loan:

  • Since a used car will definitely cost less, thereafter, the loan amount required to purchase a second-hand car will far lesser compared to the new car. This means that the borrower can pay low EMIs for a shorter tenure period, thus making it a pocket-friendly option.
  • A used car loan provides as many features and benefits as a new car loan but with much less hassle. Also, since used car loans are not as popular as new car loans, the banks and NBFCs usually provide a customized loan program, with lower interest rates and better offers.
  • Also, in case of a pre-owned car, the current on-road price of the model does not restrict you from buying your dream car. You can use the amount you invest in a new car of a particular model instead of buying a premium model in the same amount or probably even lesser in the case of a used car. You can also reclaim the amount when you resell it as the price of a used car does not depreciate as quickly as it does for a new car.

Eligibility Criteria for a Used Car Loan

The eligibility criteria for a used car loan for salaried employees and self-employed individuals vary and are accordingly mentioned below:

Salaried Employees

  • Age Criteria: 21-65 years
  • Income Requirements: At least Rs.15,000 per month
  • Income Status: must be working in the current organization for a minimum of a year.

For Self-employed Individuals

  • Age Limit: 25-65 years
  • Income: Must be earning a profit of at least Rs.1.5 lakh annually
  • The business must be operating for the past 3 years

Documents Required for a Used Car Loan

The list of documents that are essential to be submitted to avail a used car loan is mentioned below:

  • Application form
  • Passport-size photographs
  • Car valuation report
  • Identity Proof: Any of the below-mentioned documents can be submitted as proof of identity:
    • Aadhaar Card
    • PAN Card
    • Passport
    • Driving License
    • Voter’s ID
  • Address Proof: Any of the below-mentioned documents can be submitted as proof of address:
    • Voter’s ID
    • LIC Policy
    • Driving License
    • Ration Card
    • Passport
    • Electricity Bill
    • Aadhaar Card
  • Income Proof: The below-mentioned documents must be submitted as proof of income:
    • Profit and loss account
    • Balance sheet
    • Audit sheet
    • Form 16
    • Salary slip
    • Bank statements

Tips to Avail a Used Car Loan

Certain tips and tricks can help you avail the best-used car loan in the market. 

  • Know your repayment capability
    It is important to choose a car model that suits your budget that is in line with your regular requirements. Thus, buy a car whose loan amount can be easily paid off from your income. 
  • Enquire about hidden fees and charges
    An external total amount may not give a detailed idea of the hidden, small fees and charges that your lender might be charging you for. It is important to enquire such charges with the car loan lender and ask questions about any hidden fees and charges concerning the used car loan. These charges also might have some fixed tenure, post which you may be imposed with fines. 
  • Compare all deals in the market
    There are many options available for you in the market regarding your car loan and neither of them is the same. The interest rates also vary depending on the lender’s own requirements. Thus, having a car loan provider who’ll provide you with the perfect car loan interest rate, tenure, EMI options involves a moderate amount of work and research, and DialaBank does the required job for you. Just call our helpline number 9878981166 or visit our website to check all the prevailing deals and choose the right one for yourself.
  • Evaluate the rate of interest 
    The rate of interest on your car loan is one of the biggest factors that affects your loan amount payable and must always be taken into consideration while looking for a Car loan. Being directly proportional, the lower the interest rate, the better, as it makes the EMIs lower. But, it is also essential to note that lower Interest rates also signify lower services.

Used Car Loan from Dialabank

Even though availing a car loan has become an easy task for the borrowers nowadays, but the process can sometimes be hectic and confusing due to a large number of banks and NBFCs offering the loan. With many lenders comes a different range of offers and schemes that vary accordingly. For a borrower, this can be a troublesome process which is where DialaBank comes into play.
At Dialabank, we assist customers in comparing and choosing the right offer existing at the best price in the market across the country. To avail a used car loan just follow the steps below:
  • Visit dialabank website.
  • Fill a simple form regarding your name, location, income, etc.
  • Choose “Used Car Loan” from the options given.
  • Click on Request a Quote.
  • Our relationship manager will soon get in touch with you over your provided contact number, to assist you regarding the process. 

Used Car Loan EMI 

EMIs or the Equated Monthly Instalments are a great loan repayment technique that makes it much easier and a peaceful process. But, having to pay any sort of EMIs can also hamper your budget. Therefore, it is advisable to use the EMI Calculator to calculate the EMI amount well in advance to ensure that you can actually afford to take a loan for the desired amount.

This also helps in the proper management of your income and to avoid any sort of loan default. Our DialaBank’s car loan EMI calculator instantly provides you with the monthly amount that you would be required to pay based on the loan amount, term and interest rate inputted by you. 

FAQs About Used Car Loans

✅What amount can I expect to avail for a used car loan?

The loan amount differs from one lender to the other and depends on various conditions including the characteristics of your car and loan requirements. It also depends on your eligibility criteria and credit history. However, the minimum loan amount that most of the lenders offer easily is Rs.1, 00,000 in most cases.

✅ Can I use the loan amount to fund the entire cost of my car?

Most banks and lenders, provide only 80% to 90% of the total cost of the vehicle in the form of a car loan. However, there are a few lenders that may cover the entire cost of the car, upon request. Your eligibility can also define the loan amount that you can get from the lender.

✅ Am I eligible to pre-pay the entire car loan amount if desired?

Some banks offer an option of prepaying the entire used car loan amount and save on vital interest payments in the future without charging you for it. But, most banks allow pre-payment only after the completion 6 months of the loan tenure, that too on charging some percentage of the rate of interest. This is a small fee in the form of pre-payment penalty will be chargeable by the lender. 

✅ Which cars are eligible to be financed by car loan lenders in India?

All cars including small to medium-sized cars, Sports Utility Vehicles (SUV) and Multi Utility Vehicles (MUV), hatchbacks come under the car loans finance scheme available throughout India. However, certain lenders may be providing loan to a specific vehicle, therefore enquire about the same at the time of car loan application or from your own lender. For funding a premium car, the interest rates vary depending on the borrower’s loan amount requirements and his eligibility.

✅ Can I borrow a top-up loan over my already availed second-hand car loan?

Some of the banks offer refinancing option or borrowing an additional loan over an allotted used car loan. The value of the car then can be used to redeem the necessary cash to meet your immediate financial requirements. Mostly, 80%- 85% of the car’s valuation amount can be availed through some lenders.

✅ Can I negotiate on the used car loan interest rate?

Yes, you are eligible to negotiate the loan interest rate amount with your lender if you have a good credit score, credit history and personal relationship with the lender.

✅ What is the repayment tenure for car loans commonly offered by the lenders?

 All banks offer a repayment tenure ranging from a minimum of 12 months or a year to a maximum of 84 months or 7 years depending upon the loan amount and customer’s repayment capabilities. The tenure varies with each lender. 

✅ Is a guarantor mandatory for a used car loan?

No, a guarantor is generally required only in case if you are unable to meet any of the eligibility criteria requirements specified by the lender. Otherwise, the borrower alone can avail the car loan. 

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