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:
Rs.1.5 lakh to Rs.25 lakh
12.5% p.a. to 14.5% p.a. floating
2% of the principal loan amount
TVS Credit Services
Rs.20,000 to Rs.10 lakh
13.1% p.a. to 15% p.a. floating
Rs. 999 + applicable tax
Rs.1 lakh minimum
11.50% p.a. floating
A one-time processing fee of Rs. 575 + GST
12% p.a. to 15.5% p.a. fixed
A one-time processing fee of up to Rs. 5,000
Rs.1 lakh minimum
12% p.a. to 14% p.a. fixed
A one-time processing fee of up to Rs. 2,500
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.
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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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.
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.
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 .
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.
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.
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.
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.
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.
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 .
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.
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.
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.
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.
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.
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.
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 .
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.
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.
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.
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.