Used Car Loans 2021
|ICICI Bank||10.75% – 12.75%||5 years|
|SBI||9.90% – 10.90%||7 years|
|HDFC Bank||11.50% – 14.50%||7 years|
|Punjab National Bank||It 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 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.
Many leading banks and NBFC’s throughout the country are offering loans for used cars at reasonably low-interest rates. Thus, owning a vehicle can be a dream come true, along with the comfort of attractive loans at a pocket-friendly interest rate for used cars. With us, one will get hassle-free loan approvals, convenient EMI options, and the lowest interest rates.
Before applying please check
- Interest Rate
Features and Benefits of Used Car Loan:
- Funding for up to 85% of the car’s on-road value.
- Choose any car model available in the country.
- Flexible repayment options are available (12 to 60 months).
- The model of your car should not be more than five years old
- Attractive, lowest possible interest rates
- Loan approvals and amount disbursal within 24 hours
- Hassle-free loans
- Easy, simple and minimum documentation
Avail your Used Car Loan with Dialabank and get personalised 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 by the total reducing amount.|
|No advance EMI payment is applicable.|
|Axis Bank Car Loan|
|Car Loan Amount||85% (ex-showroom price)|
|95% (on select models)|
|Tenure||Up to 7 years|
|Characteristics||One of the best interest rates on car loans is offered by PAN India.|
|Axis Bank salary account holders can avail of special schemes.|
|The Loans amount is Rs.1 lakh onwards.|
|HDFC Bank Car Loan|
|Car Loan Amount||85% (on-road price)|
|Tenure||Up to 7 years|
|Interest Rate||11.50% – 14.50%|
|Characteristics||Interest is calculated on the reducing balance every month.|
|No EMI payment in advance is required.|
|ICICI Bank Car Loan|
|Car Loan Amount||100% (ex-showroom price)|
|Tenure||Up to 7 years|
|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
A car loan can be used to finance any car, be it used or a new one. A used car is cheaper, but the car loan amount required will be 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 cost less, thereafter, the loan amount required to purchase a second-hand car will be far lesser compared to the new vehicle. 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 customised loan program with lower interest rates and better offers.
- Also, in the 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 vehicle 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:
- Age Criteria: 21-65 years
- Income Requirements: At least Rs.15,000 per month
- Income Status: must be working in the current organisation 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: Aadhaar Card/PAN Card/Passport/Driving License/Voter’s ID.
- Address Proof: Voter’s ID/LIC Policy/Driving License/Ration Card/Passport/Electricity Bill/Aadhaar Card.
- Income Proof: 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 of the best-used car loan in the market.
- Know your repayment capability
It is essential 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
A total external amount may not give a detailed idea of the hidden, small fees and charges that your lender might be charging you for. Therefore, it is important to enquire about such charges with the car loan lender and ask questions about any hidden fees and charges concerning the used car loan.
- Compare all deals in the market
There are many options available in the market regarding your car loan, and neither of them is the same. In addition, 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.
- 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 considered while looking for a Car loan. So, naturally, being directly proportional, the lower the interest rate, the better, making 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 of a car loan has become an easy task for borrowers nowadays, the process can sometimes be hectic and confusing due to many banks and NBFCs offering the loan. Moreover, 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.
EMIs or the Equated Monthly Instalments are an excellent 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 afford to take a loan for the desired amount.
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 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 of 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 a pre-payment penalty that 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 (SUVs) and Multi Utility Vehicles (MUV), hatchbacks come under India’s car loans finance scheme. However, certain lenders may be providing loans to a specific vehicle. Therefore enquire about the same at the time of car loan application or from your lender. The interest rates vary for funding a premium car 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 options or borrowing an additional loan over an allotted used car loan. The car’s value 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 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. Suppose you cannot meet any of the eligibility criteria requirements specified by the lender. Otherwise, the borrower alone can avail of the car loan.
Table of Contents
- 1 Used Car Loans 2021
- 2 Used Car Loan
- 3 Features and Benefits of Used Car Loan:
- 4 Top Bank Providing a Used Car Loan
- 5 Car Loan for a Used Car vs a New Car
- 6 Eligibility Criteria for a Used Car Loan
- 7 Documents Required for a Used Car Loan
- 8 Tips to Avail a Used Car Loan
- 9 Used Car Loan from Dialabank
- 10 FAQs About Used Car Loans
- 10.1 ✅ What amount can I expect to avail for a used car loan?
- 10.2 ✅ Can I use the loan amount to fund the entire cost of my car?
- 10.3 ✅ Am I eligible to pre-pay the entire car loan amount if desired?
- 10.4 ✅ Which cars are eligible to be financed by car loan lenders in India?
- 10.5 ✅ Can I borrow a top-up loan over my already availed second-hand car loan?
- 10.6 ✅ Can I negotiate on the used car loan interest rate?
- 10.7 ✅ What is the repayment tenure for car loans commonly offered by lenders?
- 10.8 ✅ Is a guarantor mandatory for a used car loan?