• Delhi Used Car Loan

    Delhi, the capital of India, is a bustling metropolitan city where almost everyone has something to do and some place to be. The ancient and the modern aspects of the city blend perfectly well together to gives it its uniqueness. With its abundance of monuments and companies and conglomerates, it is a popular destination for vacationers and job seekers.

    Owning a car in Delhi

    Given the popularity of Delhi, travelling from one point to the other within the city can be a bit of a hassle. Having your own vehicle can make it much easier to move around instead of waiting endless hours for public transport that either seems to be too full or never seems to be on time. Many daily commuters rely on bikes and scooters too, but when it rains heavily or when the summer heat is at its peak, a car proves to be a much better option.

    Why are used cars a better option?

    Whether to get a brand new car or a used one is a common dilemma everyone faces. Although the feeling of owning a brand new car can be exhilarating, the choice of buying a used car takes the upper hand. Here’s why owning a used car is a better option for you.

    • Lesser Cost: Price is an important deciding factor when it comes to purchasing any product. Buying a used car helps you save a lot of money as you do not have to pay the original value of the car. Plus, if you have set your mind on purchasing a particular car, you can even choose a slightly older model to suit your budget.
    • Slower Depreciation: The value of each car available on the market depreciates with time, and depreciation is highest during the first 3 years after a car is purchased. When you decide to buy a used car, you can get it after it has already undergone major depreciation. So, you will lose less money over time when you buy a used car instead of a brand new one.
    • Fewer Taxes: A new car on the market comes with a lot of expenses, such as insurance charge, RTO charge, extended warranty charge, handling charge, and other miscellaneous charges. This can make the car cost a lot more than its mentioned ex-showroom price. You will be able to save on these expenses when you go for a used car. It can be even cheaper for you if you buy one that is already insured.
    • Tension-Free Drive: With a used car, the tension of getting a scratch or a dent is usually much lesser than with a brand new car, especially if you are a new driver. You will definitely worry less about driving your car through congested traffic, bad roads, and narrow lanes.
    • Certified Cars: With the increase in popularity of used cars, many certified and reliable used car dealers have come up. They get the car checked by certified engineers so you don’t have to worry about being conned by unreliable salesmen.

    Used car loans

    Used car loans come in very handy when you want to purchase a pre-owned car and do not have sufficient funds to do so. Various banks and non-banking financial companies (NBFCs) offer used car loans, but the terms of the loan may not always be very beneficial for the borrower. Here are some features of used car loans you need to consider before applying for a used car loan.

    Interest Rate and Tenure: Although used cars cost lesser than brand new cars, used car loans may have a higher interest rate and a shorter tenure than general car loans. Used car loans can usually be availed for up to a period of 5 years, while some lenders may be willing to lend only up to a period of 36 months. Since the rate of interest and the loan tenure will determine the value of equated monthly instalments (EMIs) you need to pay, it is important to take these factors into consideration before applying for a used car loan.

    • Down Payment: Most banks require you to make a down payment of up to 20% of the on-road or ex-showroom price of the car you wish to buy, while some NBFCs may require you to pay only 10% of it. How much each bank or NBFC is willing to finance you varies with each one.
    • Processing Fee: Loan issuers will charge a small fee of about 2% of the entire loan amount to process your loan. The principal loan amount that will be disbursed to your account will have this charge deducted from it. Banks and other financial companies may waive this amount off but it depends entirely on their terms and conditions.
    • Prepayment and Preclosure Fees: Prepaying your loan amount can be beneficial as it helps you save on the interest amount. After you have paid 12 EMIs, most lenders offer you an option to make part payments or full prepayment in order to pay off the loan before the end of the tenure. However, lenders may charge you a prepayment or a preclosure fee, which varies from one financial institution to another.
    • Foreclosure: At the time of loan disbursal, borrowers have to sign an agreement that pledges the car as security. In an event you default your used car loan by repeatedly failing to pay EMIs, the bank will repossess the car and sell it in an auction to try and recover the remaining loan amount, which is known as foreclosure. Such an event will negatively impact your credit score and will make it difficult for you to secure a loan in future.

    How to apply for a used car loan?

    Applying for a used car loan is relatively easy and you can do it in 2 ways: online and offline. When applying for a car loan online, you will need to visit the websites of different banks and check what they have to offer. Once you have done that, you can download an application form, fill it, and submit it along with the required documents. An agent from the bank will get in touch with you to take the process further.

    To apply for a used car loan offline, you will need to visit a bank branch, ask for a car loan application form, fill it, and submit it along with your documents. The bank will look into the loan application and will approve or deny the loan based on your eligibility. When the loan is approved, the principal loan amount will be disbursed into your bank account.

    If you have been using the services of a certain bank for a long time and if your credit history is good, the bank may offer you a pre-approved loan. Such loans are processed very quickly and the loan amount is immediately disbursed into your account.

    Documents required to apply for a used car loan

    To avail a used car loan, you will need to submit your identity, address, age, and income proofs. Here are some of the documents you need to submit.

    • An Aadhar card, voter ID card, PAN card, or passport as proof of identity.
    • A ration card, utility bill, or passport as proof of residence.
    • A voter ID card, PAN card, passport, birth certificate, or driving license as proof of age.
    • 3-6 months’ salary slips and bank statements or form 16 as proof of income.

    Car loan eligibility

    Lenders offer used car loans who meet certain eligibility criteria, which can vary from one lender to another. The basic eligibility criteria for used car loans are the following:

    • An applicant must be between the ages of 21 and 65 years.
    • He or she must have a minimum of 2 years of work experience in the same field.
    • He or she must be a salaried individual or self-employed.
    • He or she must have a stable income of at least Rs.2 to 4 lakh annually.
    • He or she must have a credit score of 750 and above.

    Compare used car loans in India

    Comparing loans offered by different lenders will have you know your options. Once you have all your options laid out in front of you, you can choose the one that best suits your requirements, and submit your application.

    Here are some of the offers on used car loans in Delhi.

    Lender Interest Rate Loan Amount Processing Fee Tenure
    HDFC Bank 12%– 15.5% p.a. Fixed Rs.75,000 minimum One-time fee of up to Rs. 5,310 1 – 7 years (At the time of loan maturity, the age of the car should not be more than 10 years.)
    TVS Credit Services 13.1% - 15% p.a. floating Rs.20,000 to Rs.10 lakh Rs. 999 + applicable tax 1 – 5 years
    Capital First 12.5% - 14.5% floating Rs.1.5 lakh – Rs.25 lakh 2% of the principal loan amount 1 – 7 years
    Sundaram Finance 12% - 14% fixed Rs. 1 lakh minimum Rs. 2500 (a one-time processing fee) 1 – 3 years
    Dena Bank 11.50% floating Rs. 1 lakh minimum Rs. 575 (a one-time processing fee) 1 – 3 years

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    Customer Reviews

    • Axis Bank Car Loan
      "Average"
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 13
      , kolkata
      Reviewed on Mar 21, 2020
    • Kotak
      Kotak Car Loan
      "Good "
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 9
      , tirupur
      Reviewed on Mar 20, 2020
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      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 .
      Was this review helpful? 13
      , chennai
      Reviewed on Mar 19, 2020
    • HDFC Bank Car Loan
      "Easy loan approval"
      0.5 4.5/5 "Excellent!"
      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.
      Was this review helpful? 7
      , jaipur
      Reviewed on Mar 18, 2020
    • review Car Loan
      "Best Service"
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 8
      , jaipur
      Reviewed on Mar 16, 2020
    • Tamilnad Mercantile Bank Car Loan
      "Average Service"
      0.5 2.0/5 "Expected more"
      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.
      Was this review helpful? 7
      , surat
      Reviewed on Mar 15, 2020
    • ICICI Bank Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 7
      , chennai
      Reviewed on Mar 15, 2020
    • ICICI Bank Car Loan
      "Need to be zero for pre closure charge "
      0.5 3.0/5 "Satisfactory"
      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.
      Was this review helpful? 7
      , hyderabad
      Reviewed on Mar 11, 2020
    • Axis Bank Car Loan
      "Excellent service "
      0.5 5.0/5 "Blown Away!"
      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 .
      Was this review helpful? 11
      , bangalore
      Reviewed on Mar 10, 2020
    • HDFC Bank Car Loan
      "Quick process"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 7
      , kanchipuram
      Reviewed on Mar 09, 2020
    • YES Bank Car Loan
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      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.
      Was this review helpful? 5
      , agra
      Reviewed on Mar 06, 2020
    • ICICI Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 5
      , bangalore
      Reviewed on Mar 05, 2020
    • HDFC Bank Car Loan
      "Good Loan Service"
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 6
      , jammu
      Reviewed on Mar 05, 2020
    • ICICI Bank Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 3
      , rajkot
      Reviewed on Mar 05, 2020
    • Kotak Car Loan
      "Less interest rate loan"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 10
      , bangalore
      Reviewed on Mar 05, 2020
    • ICICI Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      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 .
      Was this review helpful? 4
      , ahmedabad
      Reviewed on Mar 05, 2020
    • HDFC Bank Car Loan
      "Fast approval loan"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 11
      , vadodara
      Reviewed on Mar 05, 2020
    • Bank of India Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      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.
      Was this review helpful? 7
      , indore
      Reviewed on Mar 04, 2020
    • IndusInd Bank Car Loan
      "Best service "
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 10
      , tirunelveli
      Reviewed on Mar 04, 2020
    • SBI Car Loan
      "Good loan offer"
      0.5 5.0/5 "Blown Away!"
      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.
      Was this review helpful? 21
      , bangalore
      Reviewed on Mar 04, 2020
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