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.

    Customer Reviews

    • SBI Car Loan
      "SBI provides loan with lower interest"
      0.5 4.0/5 "Great!"
      I have purchased a Maruti WagonR car by using the SBI car loan. They have provided me a loan within 2 days. They have collected the all the documents and the next day they have given a cheque directly to the dealer and i have got the car on the same day. They have given me a interest rate of 11.5% which is less compared to other bank. I have selected the tenure period of 3 years and i have pre-closed in 1.5 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with HDFC bank,they have given me sufficient loan amount,it is enough for me,and i applied this card through showroom ,the bank executive came to my place and took the documents and in net banking i applied i got loan soon, the rate of interest they have charged me up to 10.5% it is nominal,they have not charged me processing fee,it is zero processing fee,still this loan is running.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My car loan experience with HDFC has been good and the loan amount which they had provided has been sufficient. Overall their has been a help from their customer support as well. The loan amount is 1170000 and it is good enough . The interest rate with them has been nominal and the tenure period is 5 year .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • Federal Bank Car Loan
      "Very good experience"
      0.5 4.0/5 "Great!"
      I have got my card loan through FEDERAL BANK . While getting the loan the process is very easy and the documentation part is also very easy . The tenure period is sufficient and the rate of interest and processing fee is very nominal . The loan amount is very satisfactory .
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Good Car Loan services"
      0.5 5.0/5 "Blown Away!"
      I have applied the car loan through online. When i chose the car loan, i have selected the HDFC bank because of the services. They have sanctioned the loan on time. I got the loan amount of Rs. 5 lakhs with the tenure period of the 3 years. They were offering me a pre-closure and partial payment with some charges.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Axis Bank Car Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      I have closed AXIS car loan, the paper work was smooth at the time. I paid the all the emi and closed it. Finally I got the NOC letter from the bank. They responded well at the time of taking loan however I approached the bank through the dealer. Interest was almost same as other bank for my first car it was Hyundai I10.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Jan 19, 2019
    • Axis Bank Car Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      For my Mahindra verito car, AXIS bank sanctioned the loan which I was required for the purchased and they gave me the flexible emi as per my preference. I got the NOC letter from the bank for the car loan. I have taken two car loans from the same bank.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Hassle Free Experience"
      0.5 4.0/5 "Great!"
      I am fine with the documentation process of HDFC car loan, they done everything on time. They are providing good interest in the market. I took the loan amount around Rs. 5.5 lakhs and they approved upto 90% of loan and I got the car delivery on time.
      Was this review helpful? 0
      , lucknow
      Reviewed on Jan 19, 2019
    • Union Bank of India Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      I have taken a car loan in Union Bank of India before 2 years. The rate of interest is minimum which is 9.9%. I have purchased Grand i10 car and have paid some down payment. I think they took bit longer to process the loan. The customer service is good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Bank of Baroda Car Loan
      "Normal Loan"
      0.5 3.0/5 "Satisfactory"
      They have approved the loan immediately from Bank of Baroda hence i have chosen them. I got the car loan in last year August. I have applied the loan amount of Rs. 8 lakhs and they have approved the same. They have charged me a processing fee of Rs. 1800 and the interest rate is nominal.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Good car loan in the market"
      0.5 5.0/5 "Blown Away!"
      At the time of my purchase, i have taken a car loan with HDFC and i was not care about the interest since i don't have any idea about it. The loan got approved immediately. The documentation process was easy and smooth. Total tenure period the loan 36 months. I have not spoke with the customer care service so far.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • 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? 3
      , 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? 1
      , 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? 3
      , 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
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