• 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.

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    Customer Reviews

    • Axis Bank Car Loan
      "Average"
      0.5 4.0/5 "Great!"
      Through showroom got suggestion to take a car loan from AXIS bank. I taken this loan on 3 years back. I got the loan amount of 4L with tenure period of 4 years. The rate of interest was okay. I done the down payment of around 1.5L. EMI need to pay of 10,500 rupees. The car model is Swift Dzire. I taken for commercial purpose based on amount which I get on monthly doing the EMI payment.
      Was this review helpful? 38
      , kolkata
      Reviewed on Mar 21, 2020
    • Kotak
      Kotak Car Loan
      "Good "
      0.5 4.0/5 "Great!"
      I have taken car loan directly through Kotak Mahindra Bank. The car is secondhand and the model was INNOVA 2015 and the loan is still active and paying the premium on EMI basis .The rate of interest and the processing fee was nominal and they given a good service.
      Was this review helpful? 27
      , tirupur
      Reviewed on Mar 20, 2020
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      I have taken car loan directly through HDFC bank.The car model was TATA Nixon and still this loan is active. The rate of interest and the processing fee are medium it was 10.99% and this loan was sanctioned immediately within 2 to 3 days got the loan. Everything was fine so far until this loan was sanctioned .
      Was this review helpful? 33
      , chennai
      Reviewed on Mar 19, 2020
    • HDFC Bank Car Loan
      "Easy loan approval"
      0.5 4.5/5 "Excellent!"
      I have chosen car loan from HDFC Bank on 3 years back. I made the down payment of Rs. 1.50L and the loan amount was Rs. 4.80L. The rate of interest was normal and i am paying EMI amount of Rs. 12,157 and i have purchased Swift BSI. I given my documents to the showroom itself without any difficulty.
      Was this review helpful? 24
      , jaipur
      Reviewed on Mar 18, 2020
    • review Car Loan
      "Best Service"
      0.5 4.0/5 "Great!"
      I have taken car loan through Tata Capital Ltd directly .The vehicle name is Hyundai Eon and this loan was sanctioned on proper time frame .This loan is still active and paid the premium on Emi basis.Customer service was good to me so far .The rate of interest and the processing fee was medium.
      Was this review helpful? 20
      , jaipur
      Reviewed on Mar 16, 2020
    • Tamilnad Mercantile Bank Car Loan
      "Average Service"
      0.5 2.0/5 "Expected more"
      I have taken car loan directly through Tamilnad Mercantile Bank.The rate of interest was very high, it was 14%.This loan was sanctioned on time without any delay .The car model was Maruti Suzuki Alto k10 vxi and there was no difficulties faced so far .This loan is still active and everything was good.
      Was this review helpful? 14
      , surat
      Reviewed on Mar 15, 2020
    • ICICI Bank Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      From ICICI Bank, i applied a car loan and the loan amount was Rs. 3.50L. I made a down payment of Rs. 90k and the rate of interest was normal. I have given my documents to the showroom and am planning to close the loan with in 2-3 months. I have purchased a Maruthi car.
      Was this review helpful? 21
      , chennai
      Reviewed on Mar 15, 2020
    • ICICI Bank Car Loan
      "Need to be zero for pre closure charge "
      0.5 3.0/5 "Satisfactory"
      I chosen ICICI car loan offer through showroom. I taken this loan on 2 years back for the amount of 8L which is sufficient with tenure period of 5 years. On that time rate of interest was lower when compared to other bank. The processing fee is less. The car model is TATA Nexon. I done the down payment of 2.8L. EMI need to pay of 17K. For pre closure is applicable with huge charge. So I didn't go for that option.
      Was this review helpful? 18
      , hyderabad
      Reviewed on Mar 11, 2020
    • Axis Bank Car Loan
      "Excellent service "
      0.5 5.0/5 "Blown Away!"
      My car loan journey started with Axis bank which was availed directly.The vehicle name is Maruti Ertiga and this loan is still active .The rate of interest and the processing fee was nominal .This loan was sanctioned on time without anydelay .I am paying the premium on EMI basis and there is no delay charges .
      Was this review helpful? 31
      , bangalore
      Reviewed on Mar 10, 2020
    • HDFC Bank Car Loan
      "Quick process"
      0.5 5.0/5 "Blown Away!"
      Maruti showroom suggested to take car loan from HDFC on few months back. They have sanctioned the loan within one week.The amount got 6L with tenure period of 7 years. An interest rate of 9%. I done down payment of 1L. EMI need to pay of 9637 rupees. The car model is Maruti new swift. Their service is good.
      Was this review helpful? 36
      , kanchipuram
      Reviewed on Mar 09, 2020
    • YES Bank Car Loan
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      I have availed car loan through YES bank directly.still this loan is active .The car model was Hyundai Creta and the rate of interest was quite nominal it was 9.60%and processing fee was very high. This loan was sanctioned on faster basis ,the loan process was clearly shared by the agent . I am paying the premium on EMI basis which will be done on time.
      Was this review helpful? 22
      , agra
      Reviewed on Mar 06, 2020
    • ICICI Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through ICICI bank .The rate of interest and the processing fee are pretty nominal and the car name is Maruti Suzuki Swift. I am paying the premium on EMI basis and need to pay the amount of 10,000.The loan was sanctioned on time without any drawbacks.
      Was this review helpful? 22
      , bangalore
      Reviewed on Mar 05, 2020
    • HDFC Bank Car Loan
      "Good Loan Service"
      0.5 4.0/5 "Great!"
      My car loan is going to be completed in this November. My salary goes into HDFC bank hence the guy keep on calling me to take the loan hence I have selected the car loan from same bank. In 2013, I have purchased the car loan by paying the down payment of Rs. 3.5L. Took the loan amount of Rs. 3.8L. I pay EMI amount of Rs. 6948 every month.
      Was this review helpful? 31
      , jammu
      Reviewed on Mar 05, 2020
    • ICICI Bank Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      I chosen car loan from ICICI on 4 years back. I bought this loan because one of my friends was working as a bank manager. I made the down payment of Rs. 2.5L and I bought the loan amount of Rs. 4.5L. I have no idea about the interest rate. I was paying EMI amount of Rs. 7,000 when I purchase the card and it keeps on in ascending order just because of my increment amount I can close at early.
      Was this review helpful? 20
      , rajkot
      Reviewed on Mar 05, 2020
    • Kotak Car Loan
      "Less interest rate loan"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken from Kotak Mahindra bank because an interest rate is less. I have taken the loan amount of Rs. 7L and I made the down payment of Rs. 5L. I have selected the duration of 5 years. I have been paying EMI amount of Rs. 14,000 per month. Documentation process was hassle free.
      Was this review helpful? 34
      , bangalore
      Reviewed on Mar 05, 2020
    • ICICI Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan through ICICI bank directly .The vehicle name is Hyundai Creta and this model was of 2018 this loan was a joint loan with my wife and still this loan is active ,premium on emi basis and there is no ppenalty for delay emi and the loan process was clearly shared by the agent .without any hassle got the loan .
      Was this review helpful? 26
      , ahmedabad
      Reviewed on Mar 05, 2020
    • HDFC Bank Car Loan
      "Fast approval loan"
      0.5 5.0/5 "Blown Away!"
      I have purchased my car loan with HDFC bank which i have taken in the month of December. There is no interest rate on fast approval so that reason i have availed this loan. I have taken the loan amount of Rs. 12.34 lakhs and i made the down payment of Rs. 50000. They have sanctioned my loan in 1 day.
      Was this review helpful? 47
      , vadodara
      Reviewed on Mar 05, 2020
    • Bank of India Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have taken car loan directly through Bank Of India .The car model was 2018 and the name is Mahindra XUV and this loan is still active and paying the premium on EMI basis .The rate of interest and the processing fee was nominal .This was a joint loan with my father.
      Was this review helpful? 26
      , indore
      Reviewed on Mar 04, 2020
    • IndusInd Bank Car Loan
      "Best service "
      0.5 5.0/5 "Blown Away!"
      From INDUSIND Bank, i have taken a car loan and the loan amount was Rs. 4.50L and i made down payment Rs. 1.80L. Pre closure is there and the rate interest was normal , emi of Rs.9600 i am paying for the tenure of 5 years. Recently done a top up on this loan for personal use.
      Was this review helpful? 40
      , tirunelveli
      Reviewed on Mar 04, 2020
    • SBI Car Loan
      "Good loan offer"
      0.5 5.0/5 "Blown Away!"
      I got car loan offer from SBI which showroom suggested to apply. The rate of interest is 9.7% is fine. I taken this loan on 3.5 years back. The amount was sanctioned of 6L was sufficient with tenure period of 5 years. The car model Mahindra E2O. I have not any down payment. There are pre closure and part payment are applicable.
      Was this review helpful? 72
      , bangalore
      Reviewed on Mar 04, 2020
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