If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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    Used Car Loans in Bengaluru

    Bengaluru is a happening city in India with multiple job opportunities in various fields, quality educational institutions, abundant society apartments, well-maintained parks, 5-star hotels, and pubs. The capital city of Karnataka has a diverse population with people from all over the country settling down here for high-paying jobs. Given the hustle-bustle of the city, the cost of living is unsurprisingly higher than most cities in the country.

    Owning a Car in Bengaluru

    Traveling in the city can be a bit arduous owing to a large population and heavy traffic. Majority of the residents own a four-wheeler or a two-wheeler of some kind to get around the city for work, school or shopping. The remaining opt for public transport like metro trains and buses. There is no doubt that cars are a convenient mode of transportation, except when stuck in a heavy city traffic. However, you can use the same car to leave behind the heavy city traffic and to go on long road trips on the weekend.

    Auto Finance for a Car of Your Choice

    If you are in the market for a car but don’t have sufficient funds to buy one, you can opt for a car loan from the bank. As the auto manufacturers around the world are launching new car models every month, the consumers are overwhelmed by the options and the lack of funds. Furthermore, carmakers are hiking prices on certain models of cars this month. This makes it harder to afford a car of your dreams.

    There is an alternative to purchasing a brand new car of your choice. The price of used/pre-owned cars is lower than new cars. With the help of used car loans, you can purchase a good-condition used car of the same model (less than 5 years old). What’s more, if you are someone who changes cars every few years, you can save money by purchasing used cars rather than new cars.

    Used Cars Loans

    Banks and Non-Banking Financial Companies (NBFCs) offer used car loans for the purchase of a pre-owned or used car. Although the price of a used car is lower than a new car, used car loans have a higher interest rate and lower loan tenure compared to new car loans due to the age of the car. Banks offer used car loans up to 80-85% of the ex-showroom/on-road price of the car at 12-18% for a loan tenure of 1 to 5 years. Used car loans are paid in Equated Monthly Installments (EMIs) over a specified period of time called the loan tenure.

    Here is a list of the top banks and NBFCs providing used car loans in India:

    Bank Loan amount Loan tenure Rate of Interest Processing fee Prepayment charges
    HDFC Bank Up to 100% funding (100% value of the used car or 3-6 times your yearly income) 1 to 7 years (age of the car at loan maturity shouldn't cross 10 years, subject to a maximum loan tenure of 5 years) 11.50-17.50 p.a. based on the segment and age of the car Rs.5,000 or 2% of the car loan amount, whichever is lower
    • 5% of the part-payment amount for prepayment within 13-24 months from 1st EMI
    • 3% of the part-payment amount for prepayment post 24 months from 1st EMI
    State Bank of India Up to 2.5 times your net annual income 1 to 5 years (also, the age of the car should not be more than 5 years at the time of taking the car loan) 12.60% p.a. 0.50% of the loan amount + GST, subject to minimum Rs.450 + GST and maximum Rs.9,100 + GST 2% of the prepayment amount
    Sundaram Finance Up to 85% of the purchase price of the car or Valuation Report by SF Panel surveyor, whichever is lower 1 to 3 years (age of the vehicle by the end of loan tenure should not exceed more than 8-10 years, depending on the make of the car) 12-14% p.a. Rs.2,500
    • Prepayment not allowed
    • Preclosure fee - 3% of principal outstanding
    ICICI Bank Up to 80% of the price of the car 24 to 35 months 10-17.65% p.a. Rs.6,000 or 2% of the car loan amount, whichever is lower
    • 6% of the part-payment amount for prepayment within 7-12 months from 1st EMI
    • 5% of the part-payment amount for prepayment within 13-24 months from 1st EMI
    • 3% of the part-payment amount for prepayment post 24 months from 1st EMI
    TVS Credit Services Up to 85% of the price of the car 1 to 5 years 13.1-15% p.a. Rs.999 + GST
    • Prepayment not allowed
    • Preclosure fee - 5% for remaining EMIs more than 24 months, 4% for remaining EMIs for 24 months, and 3% 5% for remaining EMIs for 12 months

    How to Apply for a Used Car Loan Online?

    Compare various used car loan offers across the top lenders on a reliable third-party website and choose one with a low interest rate, suitable loan tenure, and flexible repayment options. To apply for a used car loan online, download the application form from the bank website. Submit the duly-filled and signed application form along with the necessary identity proof, income proof, age proof, and address proof at the nearest bank branch. Or, you can choose to upload the application form and the relevant documents to the bank website.

    What is Used Car Loan Eligibility?

    Before applying for a used car loan, it is wise to check your car loan eligibility so as to avoid loan rejection. Multiple loan rejections can have a negative impact on your credit score. A bad credit score can hurt your future loan prospects. The eligibility criteria for a used car loan is as follows:

    • The applicant must be 21 to 65 years of age.
    • He or she must have a minimum annual income of Rs.2-4 lakh.
    • The applicant must be a salaried or self-employed person with minimum 2 years of work experience in the same field.

    Your car acts as collateral for a car loan. However, some banks may ask for a co-applicant signature for used car loans.

    How to Calculate Used Car Loan EMI?

    Use the free car loan EMI calculator available on the bank website or a reliable third-party website to find out how much your used car loan will cost you monthly. The tool is simple and easy to use. All you have to do is enter the loan amount, loan tenure, interest rate, and processing fee of your car loan into the tool. Click on the ‘Calculate’ button. You will get instant and accurate results. Manual EMI calculation is prone to human errors.

    The results of your EMI calculation will be represented in the form of an amortisation table, a pie chart, and a bar graph. You will get a complete breakdown of your used car loan. The amortisation table is a representation of your periodic used car loan schedule. It consists of EMI payments, interest payments, the outstanding due after each payment, etc. One main advantage of an online car loan EMI calculator is that you can input varying combinations of loan amounts, interest rates, and loan tenures to get revised repayment schedules. Depending on the results, you can choose a suitable loan tenure and loan amount in order to save up on the overall interest payments on your used car loan.

    Useful Tips to Obtain and Repay Used Car Loans

    • It is advisable to maintain a low debt-to-income ratio wherein your EMI payments must not exceed more than 50% of your income. A high debt-to-income ratio can lead to delayed or missed EMI payments. Defaulting on car loans can have a negative impact on your credit report. It will serve as a red flag to future lenders who check your credit report for car loan eligibility.
    • Make regular and timely car loan EMI payments to improve your credit score. A credit score of 750 and above will improve your chances of car loan approval.
    • Don’t preclose your car loan, instead opt for part prepayment and reduce the loan tenure to save up on interest payments. Banks allow borrowers to part or full-prepay car loan after 12 successful EMI payments. They also charge prepayment and preclosure penalty fees. It is a certain percentage of the prepayment/preclosure amount.
    • Choose a car loan with low interest rate and processing fee. Some banks waive off the processing fee.
    • Existing customers can get better deals on their used car loans from a bank that you have been banking with for a long time. A long-standing relationship with a bank comes with perks such as minimum paperwork and instant car loan approval.
    • Be thorough when filling the car loan application form and furnish valid documents for identity, age, income, and address proofs.
    • Compare various car loan offers across the top lenders in the country so that you don’t miss out on a good deal.
    • Use the car loan EMI calculator to find out how much your used car loan will cost you monthly. Based on the results, you can create a budget in order to maintain a low debt-to-income ratio.
    • Check your car loan eligibility online before applying for a used car loan. Check your credit score. Ensure you meet the eligibility criteria set by the bank so as to avoid a loan rejection.

    Explore the city of Bengaluru in a car of your own. From hatchbacks to luxury sedans, banks offer used car loans for most makes and models of cars on the market. However, the age of the car should not exceed 5 years. This is mainly due to the depreciation rate and motor insurance costs of used cars. Due to the high maintenance cost and the difficulty in obtaining spare parts for a used car, the insurance cost of a used car is higher than a new car.

    Customer Reviews

    • HDFC Bank Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I've taken a car loan from the HDFC bank. The loan amount was 217000 and the interest rate was high. I applied for the loan at the showroom. They processed the loan with in 3 days and it was a fast and hassle free process.
      Was this review helpful? 2
      , faridabad
      Reviewed on Sep 19, 2018
    • Kotak Car Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      Kotak Mahindra bank has offered me a car loan as well. I got the loan is 48 hours. It was a pre approved loan. I have purchased a Audi car. The interest rate and processing charges were nominal too. It was a excellent experience and the process was smooth.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 19, 2018
    • Sundaram Finance Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My experience with Sundaram Finance for car loan was very good, the process was smooth and i received my loan amount on time. Customer service was good and they responded on time. The tenure period for this loan is 4 years but i preclosed the loan in 1.5 years. I have to pay interest for 4 years as preclosure charges.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 19, 2018
    • Axis Bank Car Loan
      "Process is nice"
      0.5 4.5/5 "Excellent!"
      Axis Bank has also given me the benefit of a car loan. The rate of interest is around 8% and the process to get the loan was easy. I had no difficulty in document submission. The customer services and response is good and they communicated to me on time.
      Was this review helpful? 1
      , vadodara
      Reviewed on Sep 18, 2018
    • Tata Finance Car Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with TATA FINANCE, the process of getting loan was too fast i just got my loan in 15days and i dont have to submit document . The tenure period is 4yera and they charge high rate of interest it is 14% including insurance . They gave option of foreclose too .
      Was this review helpful? 0
      , mumbai
      Reviewed on Sep 18, 2018
    • Bank Bazaar Car Loan
      "Best Service"
      0.5 4.5/5 "Excellent!"
      The experience at Bank bazaar is good. The customer services and response is good and there are no issues to get the details for the car loan. The website is good and it is very easy to understand and informative. Thanks for the first response.
      Was this review helpful? 7
      , mumbai
      Reviewed on Sep 17, 2018
    • HDFC Bank Car Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      My car loan was taken with HDFC bank 1 year back.The loan amount was 7 lakhs and rate of interest was satisfactory .The tenure period was 3 years . There is no processing fee and the loan was good.. There is no issues faced and the whole process was smooth.
      Was this review helpful? 3
      , new delhi
      Reviewed on Sep 15, 2018
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      The experience with this Car Loan had been very good and the loan amount which they had provided also had been good as well. The interest rate with them has been good as well and when compared with the market rate. The customer support of them also had been responsive and there has not been any sort of hassles faced with their services.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 12, 2018
    • Bank Bazaar Car Loan
      "Best Service"
      0.5 4.5/5 "Excellent!"
      It was a good experience with bankbazaar so far, they provide good services on financial products when compared to others. Customer service was good with bankbazaar and they responded on time. Website of bankbazaar is easy to use and is user friendly..
      Was this review helpful? 2
      , gulbarga
      Reviewed on Sep 12, 2018
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      It was a fine experience with HDFC bank for car loan, the process was quite long and it took 20 days to receive the loan. The loan amount was for Rs 7.1 lacs with nominal interest rate and the tenure period of 5 years. Customer service was good and they followed up on time.
      Was this review helpful? 1
      , gulbarga
      Reviewed on Sep 12, 2018
    • Bank Bazaar Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I know bankbazaar.com from last 1 year, the services provided by bankbazaar is good when compared to others in the market. Customer service was good and they responded on time. Mobile application is easy to access and is user friendly.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 12, 2018
    • TVS Credit Services Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have my car loan application approved with TVS CREDIT and my experience was good, the process was smooth and i received my loan amount on time. The loan amount was for Rs 2.2 lacs with 3 years with nominal interest rate. Customer service was good and they responded on time.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 12, 2018
    • Bank Bazaar Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I know bankbazaar.com from last 4 years, my experience was good so far with bankbazaar. Mobile application of bankbazaar is easy to use and is user friendly. Customer service is good with bankbazaar but their response is not up to the mark.
      Was this review helpful? 2
      , bangalore
      Reviewed on Sep 12, 2018
    • TVS Credit Services Car Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      The process was very slow with car loan application from TVS credit, it took 15 days for the loan amount to receive. The loan amount was for Rs 3.7 lacs with the tenure period of 5 years. Rate of interest was nominal when compared to others. Customer service was good and they responded on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Sep 12, 2018
    • Bank Bazaar Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience so far with bankbazaar, i am using the services of bankbazaar from last 2 years and the services provided by bankbazaar is pretty good. Customer service was good and they responded on time. Mobile application of bankbazaar is easy to use.
      Was this review helpful? 1
      , new delhi
      Reviewed on Sep 12, 2018
    • HDFC Bank Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      The application process was smooth, it took 1 week to receive the loan amount, i have taken a car loan with HDFC bank and it was a good experience. The loan amount was for Rs 4 lacs for 5 years with nominal interest rate. Customer service was good and they followed up on time.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 12, 2018
    • Bank Bazaar Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My experience was best so far with bankbazaar, they provide good services on financial products when compared to others in the market. Customer service was good and they responded on time. I am using both mobile app and website from 2 years, it is easy to use and is user friendly.
      Was this review helpful? 1
      , jammu
      Reviewed on Sep 12, 2018
    • HDFC Bank Car Loan
      "Good service"
      0.5 2.0/5 "Expected more"
      It was a good experience with HDFC bank for car loan, the process was smooth and i received my loan within 1 week. The loan amount was for Rs 2.5 lacs for 5 years with nominal interest rate. I did not opt for the insurance but they forced me to take the insurance and i paid Rs 4000 for it.
      Was this review helpful? 0
      , jammu
      Reviewed on Sep 12, 2018
    • Bank Bazaar Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      This was my first time experience with bankbazaar and it was good, i received a call from bankbazaar and they processed the application, the response was very good from bankbazaar and i got the credit card on time. I am happy with the services provided by bankbazaar.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 12, 2018
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My car loan application was approved with HDFC bank and it was a good experience, the process was smooth and i received my loan amount on time. Rate of interest was nominal in this bank. Customer service was good and they responded on time. Tenure period for this loan is 5 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 12, 2018
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