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  • Delhi Used Car Loan

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  • 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

    • ICICI Bank Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      From ICICI, i got the car loan. From the showroom side, they have processed the loan with a good offer. The interest rate is 9.75% and there was no processing fee and i had made the down payment of Rs. 3 lakhs and the loan amount is Rs. 5 lakhs. Overall, the loan process was smooth.
      Was this review helpful? 1
      , bangalore
      Reviewed on Oct 14, 2019
    • Axis Bank
      Axis Bank Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      I have taken a car loan with AXIS bank on 2 months before which I got a chance through showroom to apply for a loan. For the amount of 4 lakhs for the tenure period of 5 years. The rate of interest high 11%. They have sanctioned a loan by 10 days. There was processing fee detected for 6 thousands. The car name is Hyundai Centro.
      Was this review helpful? 1
      , saharsa
      Reviewed on Oct 14, 2019
    • HDFC Bank Car Loan
      "Excellent Loan Service"
      0.5 5.0/5 "Blown Away!"
      My car loan was purchased from HDFC. In TATA motors only HDFC loan service available. After i given all the papers, they have sanctioned the loan immediately. I took the loan amount of Rs. 6 lakhs and Through ECS i'm paying the ECS. I pay the down payment of Rs. 1.75 lakhs.
      Was this review helpful? 1
      , dindigul
      Reviewed on Oct 14, 2019
    • HDFC Bank Car Loan
      "Fine Loan Service"
      0.5 5.0/5 "Blown Away!"
      For my car loan, already 19 months got over by paying EMI still 31 months are pending. I took the car loan amount of Rs. 2.95 lakhs and they have offered me interest rate of 8%. I have been paying the EMI amount of Rs. 6430. Totally i have chosen the tenure period of 5 years.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Oct 13, 2019
    • Axis Bank Car Loan
      "Excellent"
      0.5 4.0/5 "Great!"
      I made down payment directly to the showroom and the balance amount was borrowed with Axis Bank to purchase the car. The customer service is very good. The rate of interest is lowest among all the banks when I took the loan. Its been 5 to 6 years ago and the experience was very smooth.
      Was this review helpful? 1
      , kanpur
      Reviewed on Oct 12, 2019
    • SBI Car Loan
      "Cheap and best"
      0.5 5.0/5 "Blown Away!"
      SBI has provided me a cheap and best loan service so i bought the car loan with them. They sanctioned the loan in 3 days. The interest rates are 8.9% which is a nominal one. SBI car loan was closed 2 years before. I have fore-closure the loan for that they have not taken any charges.
      Was this review helpful? 3
      , agra
      Reviewed on Oct 11, 2019
    • Kotak Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken Car Loan directly through Kotak Mahindra Bank .The model of the vehicle is Hyundai I 10,I have got the loan amount on time ,I have got all the details about the loan process very clearly .I have got this loan on paperless approval.I am really satisfied with the service .
      Was this review helpful? 4
      , hyderabad
      Reviewed on Oct 10, 2019
    • SBI Car Loan
      "Floating interest rates"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken from SBI its because of the floating interest rates. They have sanctioned the loan in 4 to 5 days. I took the loan 7 years back hence i have no idea about the processing fee and down payment. The interest rate was convenient for me. I have received the NOC letter as well once i closed the loan.
      Was this review helpful? 8
      , bangalore
      Reviewed on Oct 08, 2019
    • HDFC Bank Car Loan
      "Very Good Loan service"
      0.5 5.0/5 "Blown Away!"
      Purchased the car loan from HDFC and they have approved the immediately. I got the loan amount of Rs. 6.5 lakhs and they have offered me a interest rate of 9% and I'm paying the EMI amount of Rs. 11000 for the duration of 7 years. The EMI amount is automatically deducted from my account every month.
      Was this review helpful? 5
      , hyderabad
      Reviewed on Oct 06, 2019
    • Sundaram Finance Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with SUNDARAM FINANCE through a showroom. An executive came and collected all the documents from my end and they have sanctioned a loan for 1 lakh 60 thousands for the tenure period of 3 years. The rate of interest was 18%. The car model is alto 2014 model.
      Was this review helpful? 1
      , erode
      Reviewed on Oct 05, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      From SBI I have taken a car loan on 5 months before which was processed through showroom. I have provided some required documents and they have sanctioned a loan within 2 days. The amount was sufficient for the tenure period of 5 years. The rate of interest and processing fee are nominal. The car model is Mahindra CUV300 it is around 12 lakhs.
      Was this review helpful? 8
      , itanagar
      Reviewed on Oct 04, 2019
    • YES Bank Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have a four wheeler loan from Yes Bank. I have already paid 18 months emi. Rate of interest is nominal as comparison to other banks. Yes Bank customer service is very good. Emi payment is very easy. Their charges are very good. I had so pay 1200 penalty for late payment.
      Was this review helpful? 5
      , kolkata
      Reviewed on Oct 04, 2019
    • ICICI Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      Purchased the car loan from ICICI and i applied in the month of April. HDFC is not disbursing the car loan and since i have salary account with ICICI, i have chosen them. They have disbursed the loan in 24 hours. The given interest rate is 9.5% approximately. I have been paying the EMI amount of Rs. 12000 and i select the tenure period of 60 months.
      Was this review helpful? 4
      , bhopal
      Reviewed on Oct 04, 2019
    • HDFC Bank Car Loan
      "Good "
      0.5 5.0/5 "Blown Away!"
      I am using HDFC BANK credit card since 2 years. I have a limit of 1.04L and am completely happy with that. I never converted the payments into EMI. The annual fee is applicable. I have been using the card for shopping and getting good reward points but have not redeemed till now.
      Was this review helpful? 8
      , hyderabad
      Reviewed on Oct 01, 2019
    • SBI Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      The services and rate of interest is good with State Bank of India interms of car loan. I have purchased Grand i10 in 2015, the loan process was very simple. They have provided me 80% funding and made down payment of 1L. The loan duration is 7years for 7L.
      Was this review helpful? 12
      , visakhapatnam
      Reviewed on Sep 28, 2019
    • review Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I took the car loan from Tata Motor Finance, per month I used to pay the emi amount around Rs.13,000. I have taken Rs.4 lakhs of loan for the duration of four years, that experience was good. Through dealer I completed the process, the documentation was easy through their field executives.
      Was this review helpful? 7
      , hyderabad
      Reviewed on Sep 27, 2019
    • HDFC Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with HDFC bank on 2 years before which was processed through a showroom. The amount was sufficient of 3 lakhs for the tenure period of 3 years. The rate of interest was nominal. The car model was Ertiga. On monthly payment is 7 thousands.
      Was this review helpful? 6
      , hyderabad
      Reviewed on Sep 26, 2019
    • SBI Car Loan
      "SBI Loan service is good"
      0.5 4.0/5 "Great!"
      My car loan was taken from SBI because the interest rate is less and the processing fee was nominal. They have not deducted any hidden charges. I applied the loan amount of Rs. 4.5 lakhs and they have sanctioned the loan in 2 days. I have been paying the EMI amount of Rs. 7500 for the tenure period of 7 years.
      Was this review helpful? 12
      , chennai
      Reviewed on Sep 25, 2019
    • Capital First Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have selected the car loan from Capital First. When i bought the car, they only approached me hence i took the loan. I have taken the loan amount of Rs. 3.5 lakhs and i have chosen the tenure period of 4 years but within 6 months, i have pre-closed the loan with some charges. They charged me 3% of pre-closure charges.
      Was this review helpful? 6
      , bangalore
      Reviewed on Sep 25, 2019
    • Ford Finance Car Loan
      "Attractive Interest rate"
      0.5 4.5/5 "Excellent!"
      I took the car loan from Ford Credit they gave me least in the market around 7.99% for the loan amount of Rs. 5 lakhs. The on road price of the car is Rs. 7 lakhs and I paid down payment of Rs. 2 lakhs, there is no processing fee from the disbursement its a best part.
      Was this review helpful? 5
      , ghaziabad
      Reviewed on Sep 23, 2019
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