One of the oldest banks in India, Dena Bank was established in the year 1938. Now a public sector bank under the Banking Companies, Dena Bank offers financial services that include personal loans, business loans and deposits. When it comes to car loans, Dena Bank has a very comprehensive portfolio with a plethora of customer-centric benefits.
Dena Bank provides loans for new cars as well as used car loans. With Dena Bank used car loan scheme, you will be able to put your dreams of owning a car on the right track without burning up your savings.
At least 18 years old
Less than 70 years old
Salaried or self-employed
with regular income
Earn more than the minimum
Minimum income required
Rs.8,00,000 per annum
Loan capped @
85% of the Ex-Showroom price of Car value
EMIs of other loans lower
Pay off your credit card bills
Choose longer tenure loan up to 3 years
|Interest Rate (Monthly reducing balance)||9.05%- 11.50%|
|Processing Fees||Rs. 575|
|Loan Tenure||1 year to 7 years|
|Pre-closure Charges||Preclosure permitted after 6 months.0% of principal outstanding (plus applicable tax)|
|Guarantor Requirement||No guarantor required|
The following benefits and features that accompany Dena Bank used car loans makes it the most sought-after product in the financial market.
Dena Bank offers a high loan quantum which will comfortably let you buy a car.
Dena Bank offers interest rates as low as 13% per annum for used car loans.
The loan amount will be directly disbursed to the authorized dealer which will simplify the process even further.
Up to 60 EMIs and a maximum repayment period of 36 months can be availed for repaying the used car loans.
Less documentation, easy application process and convenient repayment terms will ensure a hassle-free loan experience.
One must satisfy the following criteria to be eligible for Dena Bank Used Car Loans.
You will need to submit the following documents while applying for Dena Bank Used Car Loans.
Do make an enquiry with Dena Bank about the complete set of documents that are required before proceeding with the application process.
Dena Bank’s vehicle loan can be used to purchase a second-hand car, with the interest rate determined through MCLR for new borrowers. Existing borrowers can choose to migrate to this system or continue with the old system (Base Rate).
Dena Bank Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
MCLR based benchmark rates were introduced following a notification from the RBI. These rates take factors like repo rate, tenure, CRR, etc. into consideration, thereby ensuring that a just system of interest is adhered to. The table below highlights the current benchmark rates.
|MCLR Benchmark Tenure (Period)||Benchmark Rates (MCLR)|
Used car loan interest rates
MCLR based interest for a used car loan is computed using a simple formula, as highlighted in the table.
|Loan type||Interest rate|
|Used car loan||MCLR (1 year) + 2.50% = 12.10% per annum|
Dena Bank Base and Prime Lending Rates (For existing borrowers)
|Base Rate||9.70%, effective 05/10/2015|
|Prime Lending Rate||15.20%, effective 05/10/2015|
Dena Bank interest rate for used cars (Based on Base Rate)
Existing customers who do not wish to migrate to the MCLR based platform will continue paying interest according to the base rate. This interest is determined by the bank, with it changing from case to case, depending on the loan amount and tenure.
Note: Interest rates mentioned here are valid as of 6/6/2016. These rates are subject to change without prior notice and borrowers should check the same with the bank.
It is very important to ensure that you are comfortable with the EMI before proceeding with the loan. For the same purpose, you need to find the right tenure for the prescribed interest rate. When it comes to an EMI Calculator, you just have to enter the loan amount and interest rate along with the tenure. The calculator will instantly display the amortization details for the given details. This information will help you decide if the EMI for used car loan is affordable.
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