If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • Car Loan BYTES FROM OUR KITCHEN

    Ahmedabad Used Car Loan

    Ahmedabad, a city in the state of Gujarat, is one of the largest cities in India. It is one of the fastest developing cities in the country and has a well developed public transport system, like buses and trains. Although you can use these forms of transport to commute within the city, having your own car can make it much more convenient for you. You can even use it for weekend getaways, and you can drive your car without having to worry about the damages like you would with rental cars.

    Why should you opt for a used car?

    The thought of owning a car can be exciting and can give you a sense of accomplishment, but the dilemma of whether to opt for a used car or a new one may be on your mind. If you are not a confident driver or have a limited budget, a used car may be the right choice for you. Here are some reasons why you should opt for a used car.

    • The price is lower: For most people, the cost of cars is what prevents them from buying one. So if your budget is not too high, you can opt for a used car as they are much cheaper than used ones. With the amount of funds you have at your disposal, you can purchase a used car model of a higher end instead of a lower end new car model. If you still do not have sufficient funds, you can save some money by choosing an older make of the model of your choice.
    • You can enjoy tension-free drives: When you purchase a brand new car, you will be worried about damaging it when you drive it. This tension can be bad for those who are learning to drive or are not extremely skilled drivers. But with used cars, this tension is not that much, allowing you to drive much more freely.
    • The depreciation rate is slower: The price of a brand new car depreciates rapidly during the first 3 years of its purchase. So when you decide to sell your car after a few years of using it, you will lose a large percentage of the money you had spent on the car. But if you buy a used car, its value will already be depreciated, so you don’t have to deal with the stress of losing a lot of money.
    • Used cars are well maintained these days: Since used cars are in demand nowadays, many certified dealers have come up, who check the cars and ensure they are well-maintained before putting them up for sale. So if you buy from such dealers, you will not have to worry about being conned by a cunning salesman.
    • You will save on taxes: When you purchase a new car, you will have to pay more than the value that is mentioned. This is because you will have to incur additional expenses such as insurance charge, warranty fee, handling charges, and other miscellaneous expenses. On the other hand, you usually end up paying what is mentioned for used cars, especially if the car is already insured or under warranty.

    Auto finance for a car of your choice

    Once you have made up your mind to purchase a used car but do not have the means to do so, you can borrow money from banks and non-banking financial companies. These lending institutions offer new as well as used car loans at competitive interest rates. You can get up to 80-90% of the value of the car from them. As long as you meet their eligibility criteria your car loan application will be approved.

    Here are some banks and NBFCs that provide used car loans in India:

    Lender Loan Amount Interest rate Processing Fee Loan Tenure
    Capital First Rs.1.5 lakh to Rs.25 lakh 12.5% p.a. to 14.5% p.a. floating 2% of the principal loan amount 1-7 years
    TVS Credit Services Rs.20,000 to Rs.10 lakh 13.1% p.a. to 15% p.a. floating Rs. 999 + applicable tax 1-5 years
    Dena Bank Rs.1 lakh minimum 11.50% p.a. floating A one-time processing fee of Rs. 575 + GST 1-3 years
    HDFC Bank Rs.75,000 minimum 12% p.a. to 15.5% p.a. fixed A one-time processing fee of up to Rs. 5,000 1-7 years
    Sundaram Finance Rs.1 lakh minimum 12% p.a. to 14% p.a. fixed A one-time processing fee of up to Rs. 2,500 1-3 years

    How to apply for a used car loan in Ahmedabad

    You can apply for a used car loan in 2 ways, online or offline. When applying for a used car loan online, you need to visit the websites of different lenders and see what they have to offer. Compare the offers, select one that suits your requirements, download the application form, fill it, and submit it along with the necessary documents. Once you submit the application, an agent of the bank will contact you and take your application forward.

    Applying for a used car loan offline is a bit more hectic than applying for one online because you have to visit banks and NBFCs in person to check out their loan offers. Once you have decided which lender to borrow funds from, you can fill their application form, and submit it along with a copy of your documents. Remember not to submit multiple applications at a time as it reduces your chances of getting your loan approved.

    What is the eligibility for a used car loan?

    The eligibility criteria for used car loans vary from one lender to another. Here are some basic eligibility criteria that most financial institutions have:

    • The applicant should have a credit score of 750 and above.
    • He/she should have a minimum annual income of Rs.2-4 lakh.
    • He/she must between the ages of 21 years and 65 years.
    • He/she must be a salaried or a self-employed individual.
    • He/she must have work experience in the same field for a minimum of 2 years.

    You should always check your used car loan eligibility before availing one as a loan rejection can negatively impact your credit score.

    What are the documents required for a used car loan?

    Here are the documents required to avail a used car loan:

    • Identity proof: Aadhar card, voter ID, PAN card, or passport.
    • Address proof: Ration card, passport, or utility bill.
    • Age proof: PAN card, passport, birth certificate, voter ID, or driving license.
    • Income proof: IT returns, 3-6 months’ bank statements,3 months’ salary slips.

    Features of a used car loan

    Used car loans have the following features:

    • Loan amount: Most financial companies finance up to 80-90% of the value of the car you are planning to purchase. You will have to pay the rest of the amount as a down payment. The higher the down payment amount, the lower your loan burden will be.
    • Loan tenure: Banks give out used car loans for a specified period of time, known as loan tenure, which is generally between 1 year to 7 years. Some banks may have a criterion that the age of the used car should not be more than 8-10 years by the end of the loan tenure.
    • Interest rate: Lenders loan you money and charge an interest on it. The interest rate varies from lender to lender and depends on the age and model of the used car you are purchasing. The interest on used car loans is usually higher than that of new car loans because the maintenance charge for used cars is usually higher.
    • Processing fee: Banks charge a small fee for processing your loan. This charge is usually around 2% of the principal loan amount. Once your loan application is approved, the principal loan amount disbursed to your account will have this charge already deducted from it.
    • EMI: You have to repay the loan amount in the form of equated monthly instalments (EMIs). The amount you have to pay as EMI depends on the loan amount, interest rate, and loan tenure. The higher the loan amount and interest rate the higher the EMI, and the higher the loan tenure the lower the EMI.
    • Foreclosure: In case of car loans, the car acts as a collateral. If you fail to pay the EMIs, the bank will repossess the car you have purchased with the loan amount and sell it off at an auction to recover the remaining amount. In case they are unable to recover the full amount, you will have to pay the rest. Foreclosures impact your credit score negatively and make it difficult for you to avail a loan in future.
    • Prepayment fee: After the payment of 6-12 EMIs, you can make partial payments or a full prepayment to clear your used car loan amount. Doing so is financially beneficial as it will lower the amount you have to pay as interest, but there may be a charge associated with it, which varies from one lender to another. Talk to your bank about the charges before making a prepayment.

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    Customer Reviews

    • Axis Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken my car loan with AXIS BANK . If i miss my one EMI also here they charge outstanding amount of 2% per day which is very high . The rate of interest is nominal here but late payment fee is very high . The customer service response is good and the loan amount is fine .
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 24, 2019
    • Axis Bank
      Axis Bank Car Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      The car loan experience is good which has been taken with AXIS BANK. Using from last 4yrs, loan amount was good pre approved. I have done with the documentation process and paid the payment, processing fee was there but refunded. Duration for repaying for 5 years. The customer support is good.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jun 23, 2019
    • review Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      The experience with my car loan from CHOLAMANDALAM FINANCE has been good where there was no difficulty in the disbursement. The interest rate with them had been nominal when compared with the other banks. The processing fee has also not been high and there has not been any hidden charges made by them.
      Was this review helpful? 0
      , vadodara
      Reviewed on Jun 23, 2019
    • Capital First Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My car loan amount was taken with CAPITAL FIRST BANK , the customer support is excellent with this bank , i can connect them easily with them . The tenure period is fine and loan amount is up to the mark . They provide interest rate and processing fee is nominal .
      Was this review helpful? 0
      , vadodara
      Reviewed on Jun 23, 2019
    • Capital First Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My car loan amount was taken with CAPITAL FIRST BANK , the customer support is excellent with this bank , i can connect them easily with them . The tenure period is fine and loan amount is up to the mark . They provide interest rate and processing fee is nominal .
      Was this review helpful? 0
      , vadodara
      Reviewed on Jun 23, 2019
    • SBI Car Loan
      "NOT SATISFIED"
      0.5 2.0/5 "Expected more"
      I am not satisfied with this loan because of the service is not good with the customer support. The documentation process was done but it is not smooth process to get the loan. The loan amount given with the loan was 6.3L and i have paid almost 1.5L, the rate of interest was 9.25%.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 23, 2019
    • Axis Bank Car Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the car loan since from last 10 months. The documentation process was easy and quick to get the loan. The loan amount was 10K and paid the down payment which was 1.6L, the rate of interest 9.6% approximately which is nominal. The duration is for repaying for 5 years.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 2.0/5 "Expected more"
      My car loan was taken with HDFC BANK , the process of getting loan was too fast i just got my loan in few days and i donâ??t have to submit document . The tenure period is fine and they charge nominal rate of interest . They gave charge nominal processing fee too .
      Was this review helpful? 1
      , bhilai
      Reviewed on Jun 23, 2019
    • HDFC Bank Car Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      I have a car loan with HDFC BANK. Once in a year they have window where customer can do foreclosure but they are charging if I do more than 50% of outstanding payments which was not satisfactory. The loan is ongoing and the duration is 7 years. I made down payment of 70K and the total amount was 5L.
      Was this review helpful? 0
      , vadodara
      Reviewed on Jun 22, 2019
    • SBI Car Loan
      "Its Excellent"
      0.5 5.0/5 "Blown Away!"
      SBI is very good interms of interest for the car loan , they gave me fixed interest for the amount of Rs. 5 lakhs. The bank have sanctioned the loan amount for the duration of five years. The process was hassle free without submitting lots of papers it got completed.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 22, 2019
    • SBI Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken for a car loan in STATE BANK OF INDIA which was applied directly to bank for more than 3 months through an other channel. The loan amount is sufficient which was given from bank for the tenure of 5 years. The rate of interest and the processing fee are nominal.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2019
    • Capital First Car Loan
      "Need to reduce rate of intrest "
      0.5 4.0/5 "Great!"
      I applied my car loan with CAPITAL FIRST . The rate of interest was very high so i cancel the loan with them . The customer service response was good i did not face any isuse with them they help me out . Overall i had good experience with them .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2019
    • review Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have selected shriram city union finance model of car Hyundai i grand i 10 loan amount 7 lakhs , EMI Rs 6000, Rate 11 percentage and on time process fee is 4.5 percentage .while documents submitted through executive, There is on delay disbursal loan amount .
      Was this review helpful? 3
      , pune
      Reviewed on Jun 20, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I hold HDFC BANK credit card . Offers were great with this card such as online offers and the reward point has good value in this card , cash back offers are there and many more things . I ma very happy with customer services and here i am getting EMI option too .
      Was this review helpful? 2
      , indore
      Reviewed on Jun 20, 2019
    • Renault Finance Car Loan
      "good finance for taking a car loan"
      0.5 4.5/5 "Excellent!"
      RENAULT FINANCE is a good finance company for purchasing the vehicles. The loan amount was sufficient as per my requirement for the duration of 3 years. I have taken this loan before 4 years. The rate of interest was nominal and for the processing fee is minimum amount for what they have fixed.
      Was this review helpful? 1
      , pune
      Reviewed on Jun 20, 2019
    • Kotak Car Loan
      "Excellent"
      0.5 4.0/5 "Great!"
      I was taken a car loan in KOTAK MAHINDRA bank few years before. At the time as per my requirement I received a loan amount was sufficient for the duration of 5 years. The rate of interest and the processing fee was nominal. On time the loan got sanctioned. There was an option for pre closure so I have done within 3 years.
      Was this review helpful? 4
      , hyderabad
      Reviewed on Jun 18, 2019
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding car loan with State bank of India long bank, the loan amount they have charged me was nominal, after doing down payment itself they gave loan amount, the rate of interest they have charged me was up to 9% which was nominal, more 2,15,000 i need to pay emi which i will closed soon this loan.
      Was this review helpful? 2
      , kanpur
      Reviewed on Jun 18, 2019
    • SBI Car Loan
      "Good Experience with SBI"
      0.5 5.0/5 "Blown Away!"
      Past one year I have car loan with SBI, the interest rate is nominal. I availed around Rs. 9 lakhs to purchase I20 Astra deo. I am happy with the SBI service, the customer support is fantastic in terms of documentation they guided, the branch is near to my place hence everything went well.
      Was this review helpful? 2
      , chandigarh
      Reviewed on Jun 18, 2019
    • HDFC Bank Car Loan
      "Need to decrease charges"
      0.5 3.0/5 "Satisfactory"
      I was taken a car loan in HDFC BANK a year before, the loan amount was sufficient which was provided from bank for the duration of 5 years. The loan got sanctioned on time. The rate of interest was okay. Once taken a loan after 6 months EMI has increase pretty high as well for pre closing charges was high. Due to this I have done pre closed within 1 year.
      Was this review helpful? 1
      , kolkata
      Reviewed on Jun 18, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with HDFC bank , the loan amount which they have given to me was sufficient , i have given me on based of my requirement, the rate of interest they have charged me was nominal, they have not charged me processing fee in this card, so far i did not face any issue from them.
      Was this review helpful? 3
      , ahmedabad
      Reviewed on Jun 17, 2019
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