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

    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

    Customer Reviews

    • Capital First Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got my car loan from Capital First and its been 3 months. I have purchased i20 new car and they have provided me 85% funding. The interest rate is okay and the charges has been informed, after getting confirmation from me then loan amount was credited to account. The tenure is 36months.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 19, 2019
    • Reliance Commercial Finance Car Loan
      "Average "
      0.5 2.5/5 "Just OK"
      I have taken a car loan in Reliance Finance and it was suggested by the dealer. I have purchased a seconded car and the loan amount is 4.5L which was sufficient. The interest rate is high compared to others also processing fee is applicable. The customer service is not good and they need to improve on.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 19, 2019
    • ICICI Bank Car Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I had been taken my car loan with ICICI bank previously, The loan amount which they have charged me was nominal,and th rate of interest they have charged me was nominal,they have charged according to the market price,and they have charged me processing fee or not i have no idea,like i took loan for 4,80,000,i need to pay extra 20,000 as charges,while closing loan they took to high charges,now 3 years happened i have closed this loan.
      Was this review helpful? 0
      , mumbai
      Reviewed on Mar 18, 2019
    • ICICI Bank Car Loan
      "Average"
      0.5 2.5/5 "Just OK"
      I applied directly for Car Loan with ICICI Bank. I have applied for the Loan amount of more than 1lakhs six thousand for the tenure of 3 years ,rate of interest was high ,processing fee was high ,agent clearly explained the process ,rate of interest was less when the agent told and Tata Capital agent gave high rate of interest. While submitting documents it took so long .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 18, 2019
    • ICICI Bank Car Loan
      "Quick service provider"
      0.5 5.0/5 "Blown Away!"
      My car loan with ICICI bank,, they approved the loan on time, I have purchased Hyundai I10 in 2017, the bank have sanctioned the showroom price of the car, the delivery was happened on time. Rate of interest is reasonable, I don't have any issues.
      Was this review helpful? 2
      , gurgaon
      Reviewed on Mar 16, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have purchased a Hyundai i20 car and took a loan with SBI 2 years ago. The interest rate was very competitive and there was no processing fee because as a customer as well as of employee. Being an employee, I got a long tenure of 15 years. Also foreclosure can be done without any charges.
      Was this review helpful? 3
      , mumbai
      Reviewed on Mar 15, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been holding my car loan with HDFC bank for an while,The loan amount which they have given me was sufficient,they have given me loan on basis of my requirement,and the rate of interest they have charged me nominal, and the processing fee they have charged or not i have no idea,still this loan is running.
      Was this review helpful? 2
      , chennai
      Reviewed on Mar 15, 2019
    • ICICI Bank Car Loan
      "Very good"
      0.5 4.0/5 "Great!"
      I taken four wheeler loan with icici bank last seven month and I satisfied loan amount ; my loan amount is 2.80Lack and rate of interested is 9.25% and emi amount is rs - 5795 rupees . customer service provided is good response is good . I am happy with icici bank
      Was this review helpful? 0
      , faridabad
      Reviewed on Mar 14, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this Car loan a long time back and the experience i had with them was quite good. The loan amount was sufficient and the interest rate with them has been nominal as well. There has not been any extra charges which they had made and the customer support team of them has been helpful.
      Was this review helpful? 2
      , gurgaon
      Reviewed on Mar 14, 2019
    • SBI Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this Car loan almost ten years back and the process in getting this loan was pretty good. The loan amount which they had provided was sufficient and the interest rate with them has been nominal. There was no additional charges which they had made as well.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 14, 2019
    • AU SMALL FINANCE BANK Car Loan
      "Not satisfied with the service"
      0.5 2.0/5 "Expected more"
      The experience i had in getting this loan was not quite good. The process had been okay and the loan amount was sufficient. But the interest rate with them has been pretty high and the charges which they had made has also been high as well. I am not happy with their customer support as well.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 13, 2019
    • Axis Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It was quite a good experience i had with this Car loan and the process had been pretty simple. The loan amount which they had provided was sufficient and the interest rate with them has been nominal as well. There has not been any sort of extra charges which they had made as well.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 12, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan a long time back and the process in getting this loan was pretty good. The loan amount which they had provided was sufficient and the interest rate with them has been quite nominal as well. Even their customer support team has been pretty much helpful.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 12, 2019
    • SBI Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      The experience with this Car loan was pretty good and the process went pretty smooth where the disbursement happened within a week. The loan amount which they had provided was sufficient and the interest rate with them has been nominal as well. The charges which they had made has also been nominal.
      Was this review helpful? 2
      , bangalore
      Reviewed on Mar 12, 2019
    • Punjab and Sind Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken this loan a long time back and the experience with them was pretty good. The loan amount was fine and the interest rate was also nominal. They had waved off the processing fee which was almost equal to one premium since some festival offer was going on.
      Was this review helpful? 1
      , chandigarh
      Reviewed on Mar 11, 2019
    • Canara Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with CANARA BANK . The tenuity period is sufficient , my application was taken care by CANARA and they processed it keeping my documents . Rate of interest if i see its reasonable compare to market value. I am happy with Overall services..
      Was this review helpful? 1
      , hyderabad
      Reviewed on Mar 11, 2019
    • SBI Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with SBI , the process of getting loan was too fast i just got my loan in few days and i do not have to worry about document . The tenure period is 7 year and they charge nominal rate of interest and about processing fee was also good . They gave option of preclosure too .
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 11, 2019
    • Axis Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been holding my car loan with Axis bank for an while,They have given me good credit limit based on my requirement , and the rate of interest they have charged me was nominal compare to the market value, even processing fee which they have charged me was nominal,Still this loan is running.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 11, 2019
    • HDFC Bank Car Loan
      "easy disbursement"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from Hdfc Bank. The loan amount was Rs. 4 lakhs. They have provided door step service for the documentation collection its really good. They Have disbursed the loan amount to the dealer on committed on time.I am happy with the rate of interest 9.40%. I have taken a car model Tata Tigior xt.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Mar 11, 2019
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had taken this loan a long time and it was offered through my company. The process in getting the loan was pretty easy and the loan amount which they had provided was sufficient. The interest rate and the charges with them has been as per the market rate and they had not taken any extra charges.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 11, 2019
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