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

    • Bank of Baroda Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience with them has been quite good with this loan where the loan amount has been sufficient. The interest rate which they offered has been nominal when compared with the market rate and there has not been any extra charges which they had made so far. Their customer support team had also been supportive as well.
      Was this review helpful? 1
      , navi mumbai
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      Before three years I purchased second vehicle that is Hyundai I 10 , the documentation process was good with HDFC. The dealer coordinated with the bank, hence the process was quick. I got multiple options but I chosen HDFC, the Interest rate is better because I am an existing customer.
      Was this review helpful? 0
      , delhi
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I was taken car loan from HDFC, first time I purchased SANTRO car, the documentation was very convenient. They gave me the door step service I went to the dealer and they done the process, and on time I got the car deliver. They gave me the flexible emi option.
      Was this review helpful? 1
      , delhi
      Reviewed on Jan 18, 2019
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been quite a good experience i had with this car loan and the loan amount which they had provided has been sufficient as well. The interest rate with them was around 9.25% which was nominal when compared with the market rate. The charges which they had made has been nominal as well, and even their customer support has been responsive as well.
      Was this review helpful? 2
      , bhubaneshwar
      Reviewed on Jan 17, 2019
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been taken my car loan with State bank of India, they have given me sufficient loan amount, and i am satisfied with the loan amount , and the rate of interest they have charged me up to 9.45% which is bit high compare to other bank,i have asked for 9 % but its okay, and the processing fee they have charged me was nominal,overall service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 17, 2019
    • Kotak Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been taken my car loan with Kotak mahindra bank recently ,like 2 months before i took this loan, and i am happy with the loan amount they have given me ,it was sufficient for me, and the rate of interest they have charged me up to 9.3% which was nominal for me and the processing fee they have charged me was nominal, the loan amount process went smoothly. the overall service rendered by them was really good.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 17, 2019
    • Central Bank of India Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience i had with this loan and the loan amount which they had provided has been sufficient. The interest rate with them is quite nominal when compared with the market rate. There has not been any sort of additional charges which they had made so far.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 13, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my car loan in State Bank of India by last year. The charges are normal. I have spend down payment nearly 1L out of 7L. The branch is near to my residence so will never contact the customer service. The process was immediate and it was completed within 2 days.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 12, 2019
    • HDFC Bank Car Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      HDFC gave me the door step service for the car loan. I took the loan before three years. It was the fantastic experience for me because I got the better interest, I took the loan for 5 years but I done the foreclose in three years , there was no charges for it.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Jan 11, 2019
    • Capital First Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      The process in getting my Car loan from them has been quite good and the process went smooth. The loan amount was sufficient but the interest rate with them has been quite high when compared with the market rate. Their customer support and their response has been good and has been helpful as well.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 10, 2019
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      My car loan experience with HDFC has been good and the loan amount which they had provided has been sufficient. The interest rate with them has been nominal and there has been some charges like processing fee. Overall their has been a help from their customer support as well.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 09, 2019
    • HDFC Bank Car Loan
      "Average Loan Service"
      0.5 3.0/5 "Satisfactory"
      I have approached the bank directly for my car loan. Since I'm existing customer of HDFC for 13 years, i have chosen them. I purchased the loan amount of Rs. 2 lakhs. They have offered me a interest rate of 16% In October 2018, i have closed this loan. Total tenure period of the loan was 3 years. Car Dealer has recommended me about this loan.
      Was this review helpful? 4
      , srikakulam
      Reviewed on Jan 09, 2019
    • Magma Car Loan
      "Average service"
      0.5 1.5/5 "Bad"
      I have been using my car loan with Magma Fincorp previously, they have given me sufficient loan amount ,the rate of interest they have charged me was high,and the processing fee they have charged me was high , i was not happy with there service.
      Was this review helpful? 3
      , ghaziabad
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using my car loan with HDFC bank, there service is too good, the loan amount they have given me was sufficient,the rate of interest they have given me up to 9% which is nominal for me,and the processing fee they have charged me was nominal only they have charged me up to 1% only,and still my loan is running ,there was no hidden charges they have charged apart from that,overall service is good.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Nice offer and nice loan"
      0.5 4.0/5 "Great!"
      I had a car loan with HDFC 1 year back. They have given me a nice offer hence i opted the loan with HDFC. I'm not sure about the partial payment and pre-closure facility. They have given me a nice interest rate according to what i want. I was taken a loan amount of Rs. 3 lakhs.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 08, 2019
    • review Car Loan
      "Need to reduce the charges"
      0.5 3.5/5 "Pretty good"
      I have taken a car loan in Nissan Institution, it was good. I bought the car from same showroom and they have provided me a facility. The rate of interest was high. The documentation procedure was simple. I have taken the loan almost 2 years back and its still running. The loan tenure is 5 years.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Looking for less interest rate"
      0.5 4.0/5 "Great!"
      My car loan experience was good with HDFC bank, loan amount was sufficient and the rate of interest was high when compared to other banks. Customer service was good and they responded on time. The tenure period for this car loan is for 5 years.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jan 08, 2019
    • ICICI Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with ICICI bank, the rate of interest they have charged me was nominal and they have charged me processing fee they have charged me which was nominal, the loan amount they have given me was sufficient according to the car price i got my loan, still this loan is running,overall service is good.
      Was this review helpful? 3
      , new delhi
      Reviewed on Jan 08, 2019
    • IOB Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with Indian overseas bank, the loan amount they have given me was sufficient, they have charged nominal rate of interest they have charged me up to 9 % which was nominal and there is zero processing fee , so far there service is have experience was good, they have not taken any hidden charges ,there overall service is good.
      Was this review helpful? 2
      , mumbai
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Good loan experience with HDFC"
      0.5 4.0/5 "Great!"
      My car loan running with HDFC bank, the customer service is super and the fast approval on the disbursement. They taken 15 days to deliver the car. The principal amount is Rs. 4 lakhs for the tenure of 5 years, the car model is baleno which is latest.
      Was this review helpful? 2
      , aligarh
      Reviewed on Jan 07, 2019
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