Buying a car is an extremely important financial step for most of us. But especially in times of heightened uncertainty, it’s a big purchase that requires good planning. One of the most popular ways to cut the cost of buying a car is to go for a used car instead of a brand new car. This could ensure that you get the vehicle and model of your choice at a lower price. To make it easier, you can also get a used car loan that is offered by most of the lenders in the country.
So if you are planning to get a used car loan, compare all loan offers to find the offer with the best repayment terms. Check things like the maximum loan amount and term, applicable interest rate, processing and pre-closing fees, EMI amount, eligibility requirements, documentation requirements, etc.
Note that the used car loan interest rate can in some cases be slightly higher than the new car loan interest rate. The associated general terms and conditions may also differ slightly. For example, some lenders only offer these loans for cars that are less than three years old or have a maximum term of 5 years. In addition, many lenders only finance up to 60% of the used car value and the rest has to be borne out of pocket. According to BankBazaar, you are well advised to understand these factors before making your decision.
You may also want to check to see if you are eligible for pre-approved banking deals or if you are already servicing a home loan from a particular lender if you are already servicing a home loan with a particular lender, there are perks on your used car loan.
To help you make informed decisions, here is a list of the current used car loan interest rates offered by 20 leading banks in the country. We have also provided indicative EMIs for Rs 10 lakh used car loans for a period of 5 years for each of the banks listed in the table below.
Note that we only factored in the lowest advertised interest rate on loans up to Rs 10 lakh for any bank, did not include the processing fee or other fees in our indicative EMI calculations, and the interest rate applicable to you could be higher based on your loan Your selected lender’s amount, creditworthiness, or terms and conditions.
Interest Rates and Indicative EMIs for Rs 10 lakh Used Car Loans (5 Year Term)
Disclaimer: When compiling the data, the interest rates for used car loans of all listed (BSE) public and private banks were taken into account. Banks whose data is not available on their website were not included. Data collection on the websites of the respective banks on June 8, 2021. The banks are listed in ascending order according to the lowest advertised interest rate for used car loans. The lowest advertised interest rate offered by banks on used car loans of up to Rs.10 lakh and a term of up to 5 years is shown in the table. The indicative EMIs have been calculated based on the lowest interest rate shown in the table for Rs.10 lakh 5 year loan (the processing fee and other fees are assumed to be zero for the EMI calculation). All interest rates listed in the table are guidelines and may vary depending on the bank’s general terms and conditions. * According to the rack interest rate of the HDFC Bank.
Data compiled by BankBazaar.com, an online marketplace for lending, credit cards, and more.