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  • Used Car Loans in Bengaluru is Rated as "Great!" by 34257 Users

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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

    • Bank Bazaar Car Loan
      "Good response and fast approval"
      0.5 4.5/5 "Excellent!"
      I got good response through bankbazaar. The executives were very helpful. I applied for a car loan though bankbazaar. The procedure was very easy and simple. They have the comparison option which we can easily compare with all the financial sectors.
      Was this review helpful? 0
      , chennai
      Reviewed on May 18, 2018
    • TVS Credit Services Car Loan
      "TVS car loan"
      0.5 4.5/5 "Excellent!"
      I have taken a car loan from TVS CREDIT SERVICES and the approved loan amount was 1.90 lakhs. The rate of interest was 14%. The monthly emi is 16000 for tenure of 13 months .There was some processing fee from TVS credit services. Easy documentation done.
      Was this review helpful? 0
      , chennai
      Reviewed on May 18, 2018
    • HDFC Bank Car Loan
      "HDFC car loan"
      0.5 3.5/5 "Pretty good"
      I have taken a car loan from HDFC bank and the approved loan amount was 4.99 lakhs. The rate of interest was 8% flat. I have taken the tenure of 4 years.They have charges for paper work around 2500. And 19000 for GPS. They have forced me to take the GPS and a loan insurance of 3500.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 18, 2018
    • SBI Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with SBI and my loan experience was good, the loan amount was for Rs 4 lakhs with nominal interest rate when compared to other banks. The process was quick and i received my loan amount on time. Customer service was good and the tenure for this loan is 5 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 18, 2018
    • Bank Bazaar Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Previously i had an experience while i applied fro a credit card through bankbazaar and thus i came to know that they even provide loan facilities. Later i applied for card loan and the it got approved with the time limit. I am satisfied with bankbazaar service.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 18, 2018
    • Kotak Car Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      Around 2 years ago, I have got the car loan from the KOTAK MAHINDRA BANK. The customer support service and the response is good from the Kotak and they have disbursed the loan amount within a week time. The rate of interest and the charges are average here.
      Was this review helpful? 0
      , chennai
      Reviewed on May 18, 2018
    • HDFC Bank Car Loan
      "HDFC car loan"
      0.5 4.0/5 "Great!"
      I have taken a car loan from HDFC bank and the approved loan amount was 5.40 lakhs. The rate of interest was 8.75%. First it was 8.25% and since the financial year got changed the interest got changed to 8.75%. The monthly emi is 11658 for tenure of 5 years .There was a processing fee of 4000.
      Was this review helpful? 0
      , kochi
      Reviewed on May 18, 2018
    • Bank Bazaar Car Loan
      "Fast approval for loan"
      0.5 3.0/5 "Satisfactory"
      I just used bankbazaar to calculate my EMI and later i got processed with my car loan through bankbazaar. The credit score checking option with bankbazaar was good.It was really helpful to use this website .The customer service and response with the bank is fine.
      Was this review helpful? 0
      , kochi
      Reviewed on May 18, 2018
    • TVS Credit Services Car Loan
      "TVS credit car loan"
      0.5 4.0/5 "Great!"
      I have taken a car loan from TVS CREDIT SERVICES and the approved loan amount was 2.26 lakhs. The rate of interest was nominal. The monthly emi is 6100 for tenure of 5 years.There was a processing fee was 3% of the approved. The customer service and response was good.
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on May 17, 2018
    • TVS Credit Services Car Loan
      "Good banking"
      0.5 4.0/5 "Great!"
      I have taken a car loan from TVS CREDIT SERVICES and the approved loan amount was 2.80 lakhs. The rate of interest was 15%. The monthly emi is 9500 for tenure of 40 months .There was no processing fee from TVS credit services. Easy documentation done.
      Was this review helpful? 0
      , karimnagar
      Reviewed on May 17, 2018
    • Bank Bazaar Car Loan
      "Friendly website"
      0.5 4.0/5 "Great!"
      The website is user friendly and easy to navigate. The bankbazaar team gave me regular follow ups and intimated every status regarding my loan application with TVS credit services and i am really satisfied with the procedure and response from bankbazaar.
      Was this review helpful? 0
      , karimnagar
      Reviewed on May 17, 2018
    • TVS Credit Services Car Loan
      "Good experience"
      0.5 4.0/5 "Great!"
      I have taken a car loan from TVS CREDIT SERVICES and the approved loan amount was 4.17 lakhs. The rate of interest was 14%. The monthly emi is 10490 for tenure of 5 years.There was a processing fee of 1% of the approved loan amount. The customer service and response was good.
      Was this review helpful? 0
      , chennai
      Reviewed on May 17, 2018
    • Bank Bazaar Car Loan
      " Comparable among banks"
      0.5 4.0/5 "Great!"
      The service provided by bankbazaar is comparable regarding the financial products. In bankbazaar there are lots of banks. We can choose the best offer with the best interest. Comparison is very helpful and time saving.The executives are very good and supportive. The website was really easy to navigate.
      Was this review helpful? 0
      , chennai
      Reviewed on May 17, 2018
    • TVS Credit Services Car Loan
      "TVS credit car loan"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from TVS CREDIT SERVICES and the approved loan amount was 3 lakhs. The rate of interest was 9.10%. The monthly emi is 10260 for tenure of 3 years.There was a processing fee of 3700. The documentation was very easy.
      Was this review helpful? 0
      , ahmednagar
      Reviewed on May 17, 2018
    • Bank Bazaar Car Loan
      "Good portal for financial needs"
      0.5 3.0/5 "Satisfactory"
      I have experienced the online portal of bankbazaar. I have applied for the car loan with HDFC through bankbazaar.The executives are very good and supportive. The website was really helpful and easy to navigate.Its a better platform were we can get connected to bank easily.
      Was this review helpful? 0
      , ahmednagar
      Reviewed on May 17, 2018
    • TVS Credit Services Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from TVS CREDIT SERVICES and the approved loan amount was 3.40 lakhs. The rate of interest regarding the loan has not been shared. The monthly emi is 9093 for tenure of 5 years.There was a processing fee for the RC transfer. Other than that i was really a friendly service.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 17, 2018
    • Bank Bazaar Car Loan
      " Friendly and Convenient "
      0.5 5.0/5 "Blown Away!"
      Bank bazaar website is much friendly and convenient for the financial product. i approached bankbazaar to take a car loan. The process was simple and well good. . They gave me regular follow up calls regarding the application.The executive were very helpful and polite in providing the service.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 17, 2018
    • Bank Bazaar Car Loan
      "Comfortable with bankbazaar"
      0.5 3.0/5 "Satisfactory"
      I can consider this website in future.The customer service is very much comfortable with bankbazaar as they have cleared all the query regarding my application of car loan. The process was simple and quick. The website provide all the option and we can find different products.
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on May 17, 2018
    • HDFC Bank Car Loan
      "Approachable for car loan"
      0.5 4.0/5 "Great!"
      I have taken a car loan from HDFC bank and the approved loan amount was 8 lakhs. The rate of interest was 9%. The monthly emi is 16750 for tenure of 5 years.There was a processing fee. They have taken a loan insurance of 6000 which was not mentioned and was taken from my loan amount.
      Was this review helpful? 0
      , silvassa
      Reviewed on May 16, 2018
    • Bank Bazaar Car Loan
      "Good relation"
      0.5 5.0/5 "Blown Away!"
      With bankbazaar i do have good relation. I have applied for a car loan through bankbazaar only. I good response an follow up calls, Easy to compare among different banks.The website is very easy to understand. More than all, they are very much stable.
      Was this review helpful? 0
      , silvassa
      Reviewed on May 16, 2018
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