Used car loan – Interest Rates 2024, Eligibility in India
Apply online for used car loan in India at lowest interest rates 2024. Check ✍ EMI ✍ Eligibility ✍ Offers from State Bank of India, HDFC, Axis Bank, Bank of Baroda, Union Bank, Canara Bank, Uco Bank, DHFL, PNB, Dena Bank, Kotak Bank, Bank Of India, United Bank of India, Bajaj Finserv, Indiabulls, Vijaya Bank and More.
When people think about driving first car, most of them go for the used car or second-hand vehicles. It is considered as less risky than driving a new vehicle when you obtain license. Many people prefer that owning a used car and practice on it before managing a new vehicle. Buying a second-hand vehicle is not a problem now. Many financial institutions and banks offer used car loans. However, it is important to check the availability and precautions to be taken while applying for a car loan.
What is Used Car Loan?
It can be defined as the mortgage or money obtained by an authorized lender or private sources to buy a second-hand vehicle or used car, as it is famously known. Used car loans usually cover 75% amount of the total expense for the car. Some financial organizations also give up to 90% of the value of the car.
Latest Interest rates, loan amount of major banks for used car loan/second hand cars
| Name of the bank | Maximum Loan amount | Repayment option | Interest Rate | Finance available | Eligibility |
| HDFC Bank | 3 – 6 times of your annual income | 12 to 60 months | 10.50% – 13.77% | up to 100% of the value of the car | Earn at least an income of Rs. 100000 annually |
| Bank of India | Rs-25 lacs for Indian vehicles and Rs-75 lacs for imported vehicles | 3 years | 9.35% | up to 70% of the value of the car | Minimum take home Salary – 1.8 lac p.a |
| Kotak Mahindra Bank | Up to 15lacs | 5 Years | N.A | 85% of the car’s proposed value | Minimum Salary Required -2.4 Lac p.a |
| State bank of India | 2.5 times of the net annual income of the individual | 7 years | 9.75% to 10.75% | 85% of the On road price of the car. | Minimum Salary Required 3 lac for Salaried, 4 Lac for Others |
| TVS Credit Finance | Salaried – Loan eligibility up to 15 times of gross monthly income Self Employed Person-Loan eligibility upto 4 times of Gross annual income |
5 Years | 14.00% – 18.00% | upto 85% on valuation report | Salaried – Earn Gross salary of 1.20 lacs annually Self Employed – Minimum income should be 1 Lac p.a. |
| Union Bank Of India |
Loan eligibility up to 7 times of gross monthly income | 3 Years | 12.80% | upto 70% on-road cost | N.A |
| ICICI Bank |
N.A | 3 Years | 15.50% | upto 70% on-road cost | N.A |
Related Article – Second Hand Car Loan vs Personal loan
How to Arrange Used Car Loan?
It is very necessary to think about various things when you think about buying a used car. You have to consider the type and basic requirements for the loan. Following are the steps that can be followed while obtaining a loan for used car.
- Choose the model and type of the car: It is necessary that you select a car that fulfill your needs and still in your budget. Many of the financial institutions look for the age and type of model before granting a loan. Therefore, it would be beneficial if you select a comparatively newer model and recently designed car.
- Calculate the total amount for your car: After you select the car model, you have to calculate the money that to put on the deal. If you are paying the lump sum amount as an advance, then that money should be arranged before purchasing the car. After the calculation, you will get an idea about how much loan you would need.
- Establish your requirement: Once you are clear with the loan you must apply for, decide for the tenure and installments on monthly or periodic basis. It is essential that you take into account monthly income and future predictions. Once you establish your criterions, it is easier to find the sources for the loan.
- Search for the options available in the market: Many banks and organizations in market, offer used car loans. These institutions can be named as ICICI Bank, Axis Bank, SBI, Kotak Mahindra and few others. You have to finalize one option and proceed for the loan deal with the selected bank or company.
- Submit the documents after verification: The banks demand the authorization and attested proofs of the car purchase and income stability of the customer. You have to enquire with the banks for the exact documentation required, as it differs from one bank to another. Once you submit all the documents, you will be liable for obtaining the used car loan.
