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

    Hyderabad Used Car Loan

    Hyderabad, the capital city of the state of Telangana, is one of the IT hubs of southern India, making it a popular destination for job seekers. It is also a popular tourist destination because the “old city” has many ancient attractions that draw in thousands of tourists every year. It is a city that is undergoing rapid growth due to which the connectivity within the city is well established. Though you can always take the bus or the train, which is packed during rush hours, to travel within the city, having your own car makes it much easier to move around.

    Why do used cars make a good option?

    The choice between a used car and a new one is often a tough one, but for many people owning a used car makes more sense than owning a brand new one. There are many reasons why a sued car can be a better option for you and here are some of them.

    • The depreciation rate of a used car is lower: The value of a new car depreciates rapidly during the first 3 years of its purchase. So if you plan to sell it off, you will end up losing quite a bit of money. But in the case of a used car, the value will already have undergone major depreciation, especially if you choose one that is older than 3 years. So if you sell it after driving it for a while, you will lose lesser money comparatively.
    • Used cars are cheaper: The price of a commodity is the first thing we tend to look at when making a purchase. If you compare the price of a new car with the price of a used one, buying a used car is much easier on your pockets. If you have limited funds to buy a car, you can get a used car of a better model than a new car model with the amount of money you have. In case you have set your heart on a particular model but don’t have enough money to purchase it, you can always choose an older make of the car, which is usually cheaper.
    • You don’t have to worry about a used car being faulty: When you purchase a used car, it is normal to be worried about the condition of the car as no one wants to be sold a faulty car. But these days, due to the popularity of used cars, many certified dealers have come up who check the cars and ensure they are well maintained before putting them up for sale. If you do your research and buy cars from trusted dealers, you will not have to worry about the car being faulty.
    • You don’t have to worry too much about damaging the car: When you drive a new car, the tension of getting the first scratch or dent on it will be predominant on your mind. But this tension is much lesser when it comes to driving a used car. So if you are not a confident driver or are just learning to drive, you should opt for used cars to enjoy tension-free drives.
    • You don’t have to pay extra expenses when buying a used car: When a new car comes out on the market, it will be priced at a certain value. When you finally purchase the car, you will notice that you end up paying a lot more than what is mentioned. This is because a new car will have other expenses, like handling charge, insurance fee, warranty charge, and other miscellaneous charges associated with it. On the other hand, when you purchase a used car, you don’t have to pay all these extra charges, especially if the car is already insured and is covered under warranty.

    Used car loan for the car of your dreams

    If you do not have adequate funds to purchase the car of your choice, you have the option of approaching banks and non-banking financial companies (NBFCs), who loan you money for a specified period of time and charge a small interest on it. As long as you meet their eligibility criteria, your used car loan application will be approved.

    Check your eligibility for a used car loan

    Different lenders have different eligibility criteria for used car loans. Here are some of the basic ones:

    • The applicant should be between 21-65 years of age.
    • He/she should have a credit score of 750 and above.
    • He/she should be a salaried or a self-employed individual.
    • He/she must have work experience in the same field for a minimum of 2 years.
    • He/she must have a minimum annual income of Rs.2-4 lakh.

    Do check your eligibility criteria before applying for a used car loan as a loan rejection will adversely impact your credit score, making it difficult for you to avail loans in future.

    Documents required for a used car loan

    The documents required to avail a used car loan are the following:

    • Aadhar card, PAN card, passport, or voter ID as identity proof.
    • Passport or utility bills as proof of residence.
    • 3 months’ salary slips, 3-6 months’ bank statements, or IT returns as income proof.
    • Driving license, 10th and 12th certificate, or passport as age Proof.

    How to apply for a used car loan online

    Applying for a used car loan is very simple and convenient. All you need to do is visit different lenders’ websites and check what offers they have on used car loans. Compare each of the aspects of the loan, such as loan amount, interest rate, tenure, processing fee, and prepayment charges. Once you have gone through all of your options and have made a decision, download the application form, fill it, and submit it along with the necessary documents. Make sure not to submit multiple applications at one time as it can increase the chances of your loan application getting rejected.

    Things to keep in mind about used car loans

    You may be in a rush to get behind the steering wheel of your very own car and may apply for a used car loan without taking into account all its features and charges, but you have to take it slow. No matter how excited you are about purchasing a car, ignoring the charges may cause you to be in a financially sticky situation later on. Here are a few aspects of used car loans you need to keep in mind before applying for one:

    • Tenure: When you avail a loan from a lender, you are expected to pay it back within a certain period of time, which is known as the loan tenure. The tenure can range from 1-7 years and varies from one lender to another. Some banks or non-banking financial company may have a criterion that the age of the car should not be more than 8-10 years at the end of the loan tenure. Do consult your lender about this before availing a used car loan.
    • Interest rate: When you avail a loan, banks and other financial institutions will charge you an interest for lending you the money. The interest rate will differ from lender to lender and will depend on the model and age of the car being bought. Used cars loans usually come with a higher interest rate than new car loans because of the maintenance and insurance charges are usually higher for used cars. Before you apply for a loan, make sure you know how much interest you are being charged for it to avoid any misconceptions later on.
    • Down payment: Most lenders usually finance 80-90% of the cost of a used car. You will have to pay the rest of the amount as a down payment. The higher the down payment amount, the lower will be the loan amount and the EMI.
    • EMI: You are expected to repay the loan amount in the form of equated monthly instalments (EMIs). The amount you need to pay as EMI will depend on the loan amount, interest rate, and tenure of the loan. The principal loan amount and interest rate are directly proportional to the EMI, whereas the tenure is inversely proportional. You need to calculate the EMI before you avail the used car loan so that you are not financially burdened.
    • Processing fee: Bank charge a small fee for processing your used car loan. This fee is usually 2% of the principal loan amount. Once your loan gets approved the processing fee will be deducted from the principal loan amount that will be disbursed to your account.
    • Foreclosure: When you take a used car loan, the car acts as the collateral. If you are unable to pay the EMI, the bank will repossess the car and will sell it off at an auction in order to retrieve the remaining loan amount. This process of repossession is known as foreclosure, which negatively impacts your credit report and makes it extremely difficult for you to avail a loan in future.
    • Prepayment and preclosure fee: After you have successfully paid 6-12 EMIs, you will be allowed to make part payments or make a full prepayment to clear off the loan. Doing so is financially beneficial to you as it will reduce the amount you pay as interest, but it will have a charge, which varies from bank to bank.

    Compare used car loans

    Here are some of the financial institutions offering used car loans in India:

    Lender Loan Amount Interest rate Loan Tenure
    TVS Credit Services Up to 85% of the purchase value of the used car 13.1% to 15% p.a. 1-5 years
    Capital First Rs.1.5 lakh to Rs.25 lakh 2.5% to 14.5% p.a. 1-7 years
    State Bank of India Up to 2.5 times your net annual income 12.60% p.a. 1-5 years
    ICICI Bank Up to 80% of the purchase value of the used car 10% to 14.65% p.a. 1-3 years
    Sundaram Finance Up to 85% of the purchase value of the used car 12% to 14% p.a. 1

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Customer Reviews

    • HDFC Bank Car Loan
      "Need to decrease charges"
      0.5 4.0/5 "Great!"
      I have taken a car loan in HDFC bank for more than 2 years. As per my expectation I received a loan amount for the tenure of 5 years. But the rate of interest is too high. Due to for an emergency purpose I have taken a loan in this bank. The processing fee was nominal.
      Was this review helpful? 0
      , indore
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      HDFC bank have allocated one personal banker to handle my queries. They have suggested car loan, then I availed it, the bank have approved the principal amount of Rs. 5 lakhs to purchase the car for the duration of 60 months. I am very fine with them.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      Iam chossen HDFC bank car loan on feberuary month 2019. model of the car swift d-zire .rate of interested 8.5% and tenure is 37 months,i already paid 3 months payments.customer service quick response,I received amount on time.i ll recommended to my friends and relatives.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I was taken a car loan in HDFC bank for the past 6 years ago, at an initial process was smooth and on time i received a loan from bank. As per my expectation I received a loan amount for the duration was 5 years. rate of interest was nominal. Now I have close the loan.
      Was this review helpful? 0
      , indore
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan in HDFC bank for more than 10 years ago, at the time loan amount was sufficient as per my expectation for the duration of 5 years. The rate of interest is nominal.Processing fee was good. The customer service is good and responsiveness.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2019
    • HDFC Bank Car Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the car loan with the HDFC BANK the documentation process was simple and easy also it was quick, the loan mount given was good and the loan got processed within 3 days. The rate of interest was nominal with this loan added on that the service is good.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on May 20, 2019
    • HDFC Bank Car Loan
      "Need to decrease charges"
      0.5 5.0/5 "Blown Away!"
      I have applied for the car loan with the HDFC BANK for more than a month. The amount was sufficient as per my expectation for the duration of 3 years.The verification process was done on smooth. The rate of interest is nominal. The customer service is good. But the charges is high when compare to other.
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 20, 2019
    • Kotak Car Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have applied for the car loan with the KOTAK MAHINDRA BANK where i am using it since from last 3-4 years. The documentation process was simple and easy to get the loan i got the loan amount of 4L and the rate of interest was nominal. The customer support is good.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2019
    • HDFC Bank Car Loan
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      I had taken a car loan with HDFC BANK 10 years back and have closed 5 years ago. They are really very good in supportive even the charges are very reasonable. My car showroom has tied up with HDFC BANK and the process is completely fine. I made down payment and 80% was loan.
      Was this review helpful? 0
      , silvassa
      Reviewed on May 19, 2019
    • HDFC Bank Car Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have applied for the car loan with the HDFC BANK where i have closed this loan before 1.5 years. The overall process was simple and easy to get the loan on time with no issues. The rate of interest was nominal with this loan, customer support and responsiveness are good.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • Union Bank of India Car Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      The documentation process was simple and easy to get the loan with the UNION BANK OF INDIA and the process was easy and simple where i got the loan within 2 days. The loan amount was simple and the loan amount given was satisfactory also the rate of interest was nominal.
      Was this review helpful? 1
      , noida
      Reviewed on May 18, 2019
    • Kotak Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I applied for a car loan with KOTAK MAHINDRA bank and without any delay it was processed on time . I am happy the way they understood my need. The interest rates i find it nominal when compared to other banks.Whatever loan amount i need i got the same .
      Was this review helpful? 1
      , ghaziabad
      Reviewed on May 18, 2019
    • HDFC Bank Car Loan
      "Good Loan services"
      0.5 3.5/5 "Pretty good"
      Purchased my car loan 2 years bank with HDFC. I applied the loan amount of Rs. 7 lakhs and they have sanctioned the loan within 3 days. The interest rate is convenient for me. Total tenure period of the loan is 7 years. I have been paying the EMI amount of Rs. 12K.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 18, 2019
    • ICICI Bank Car Loan
      "Good Experience with affordable interest"
      0.5 4.5/5 "Excellent!"
      My car loan is going with ICICI Bank, only once I contacted the customer support response is prompt The interest rate is very nominal. I took around the loan amount around Rs. 4.5 lakhs to purchase wagon R car. They do have part and balance transfer.
      Was this review helpful? 1
      , new delhi
      Reviewed on May 17, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      Hdfc car loan interest is very moderate because I took it directly from the bank end. I have availed the loan amount of Rs. 5.5 lakhs to purchase Santro sports car, it has duration of five years. The process was streamlined and loan got sanctioned with stipulated time.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 17, 2019
    • ICICI Bank Car Loan
      "Need to improve customer service"
      0.5 3.0/5 "Satisfactory"
      I have been taken a car loan in ICICI bank for the past 2 years. The loan amount was not much sufficient as per my expectation for the duration of 5 years. The rate of interest is nominal. The processing fee was applicable. The customer service is good and responsiveness on time.
      Was this review helpful? 0
      , pune
      Reviewed on May 17, 2019
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I had taken my Car loan from HDFC Bank in the year of 2016 and the process in getting the loan was pretty much easy, the loan amount has been fine and the interest rate with them had been nominal. The processing fees with this loan was not much high and during the process of the loan their staffs where quite helpful.
      Was this review helpful? 1
      , jaipur
      Reviewed on May 16, 2019
    • Cholamandalam Finance Car Loan
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      I had taken my Car loan from CHOLAMANDALAM FINANCE a while back and the process in getting the loan has been pretty much simple. The loan amount was sufficient, but the interest rate with them had been quite high. They had made a processing charges of 12,000 and overall their services had been pretty much good.
      Was this review helpful? 0
      , noida
      Reviewed on May 16, 2019
    • Bank of India Car Loan
      "Need overall improvement"
      0.5 2.0/5 "Expected more"
      Bank of India car loan interest was 10.4% but it supposed to be floating, I am not clear with that. As a customer I feel its very difficult to reach the customer care and they wont give proper solution for the queries. I availed Rs. 6 lakhs to buy I20 Hyundai, now Rs.2.50 is pending, total duration is for 7 years.
      Was this review helpful? 1
      , bangalore
      Reviewed on May 15, 2019
    • Axis Bank Car Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      I had taken my Car loan from AXIS Bank a long time back and the experience has been okay. The process had not taken much time but the interest rate with them had been quite high when compared with the market rate. Their customer support team was pretty much helpful and they had always been responsive.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 14, 2019
    Common Loader Icon
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.