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

    Customer Reviews

    • Central Bank of India Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience i had with this loan and the loan amount which they had provided has been sufficient. The interest rate with them is quite nominal when compared with the market rate. There has not been any sort of additional charges which they had made so far.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 13, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my car loan in State Bank of India by last year. The charges are normal. I have spend down payment nearly 1L out of 7L. The branch is near to my residence so will never contact the customer service. The process was immediate and it was completed within 2 days.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 12, 2019
    • HDFC Bank Car Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      HDFC gave me the door step service for the car loan. I took the loan before three years. It was the fantastic experience for me because I got the better interest, I took the loan for 5 years but I done the foreclose in three years , there was no charges for it.
      Was this review helpful? 1
      , ahmedabad
      Reviewed on Jan 11, 2019
    • Capital First Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      The process in getting my Car loan from them has been quite good and the process went smooth. The loan amount was sufficient but the interest rate with them has been quite high when compared with the market rate. Their customer support and their response has been good and has been helpful as well.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 10, 2019
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      My car loan experience with HDFC has been good and the loan amount which they had provided has been sufficient. The interest rate with them has been nominal and there has been some charges like processing fee. Overall their has been a help from their customer support as well.
      Was this review helpful? 1
      , pune
      Reviewed on Jan 09, 2019
    • HDFC Bank Car Loan
      "Average Loan Service"
      0.5 3.0/5 "Satisfactory"
      I have approached the bank directly for my car loan. Since I'm existing customer of HDFC for 13 years, i have chosen them. I purchased the loan amount of Rs. 2 lakhs. They have offered me a interest rate of 16% In October 2018, i have closed this loan. Total tenure period of the loan was 3 years. Car Dealer has recommended me about this loan.
      Was this review helpful? 4
      , srikakulam
      Reviewed on Jan 09, 2019
    • Magma Car Loan
      "Average service"
      0.5 1.5/5 "Bad"
      I have been using my car loan with Magma Fincorp previously, they have given me sufficient loan amount ,the rate of interest they have charged me was high,and the processing fee they have charged me was high , i was not happy with there service.
      Was this review helpful? 2
      , ghaziabad
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using my car loan with HDFC bank, there service is too good, the loan amount they have given me was sufficient,the rate of interest they have given me up to 9% which is nominal for me,and the processing fee they have charged me was nominal only they have charged me up to 1% only,and still my loan is running ,there was no hidden charges they have charged apart from that,overall service is good.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Nice offer and nice loan"
      0.5 4.0/5 "Great!"
      I had a car loan with HDFC 1 year back. They have given me a nice offer hence i opted the loan with HDFC. I'm not sure about the partial payment and pre-closure facility. They have given me a nice interest rate according to what i want. I was taken a loan amount of Rs. 3 lakhs.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 08, 2019
    • review Car Loan
      "Need to reduce the charges"
      0.5 3.5/5 "Pretty good"
      I have taken a car loan in Nissan Institution, it was good. I bought the car from same showroom and they have provided me a facility. The rate of interest was high. The documentation procedure was simple. I have taken the loan almost 2 years back and its still running. The loan tenure is 5 years.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Looking for less interest rate"
      0.5 4.0/5 "Great!"
      My car loan experience was good with HDFC bank, loan amount was sufficient and the rate of interest was high when compared to other banks. Customer service was good and they responded on time. The tenure period for this car loan is for 5 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 08, 2019
    • ICICI Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with ICICI bank, the rate of interest they have charged me was nominal and they have charged me processing fee they have charged me which was nominal, the loan amount they have given me was sufficient according to the car price i got my loan, still this loan is running,overall service is good.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jan 08, 2019
    • IOB Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with Indian overseas bank, the loan amount they have given me was sufficient, they have charged nominal rate of interest they have charged me up to 9 % which was nominal and there is zero processing fee , so far there service is have experience was good, they have not taken any hidden charges ,there overall service is good.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jan 08, 2019
    • HDFC Bank Car Loan
      "Good loan experience with HDFC"
      0.5 4.0/5 "Great!"
      My car loan running with HDFC bank, the customer service is super and the fast approval on the disbursement. They taken 15 days to deliver the car. The principal amount is Rs. 4 lakhs for the tenure of 5 years, the car model is baleno which is latest.
      Was this review helpful? 1
      , aligarh
      Reviewed on Jan 07, 2019
    • ICICI Bank Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      The process in getting this loan was quite good and there hasn't been any hassle faced. The loan amount which they had provided has been sufficient and the interest rate with them has been nominal as well. There has not been any sort of additional charges which was made by them.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 07, 2019
    • Axis Bank Car Loan
      "Good Car Loan"
      0.5 4.0/5 "Great!"
      Purchased my car loan 4 years back. I have chosen the Axis bank because the rate of interest was less when i compared with others. I have taken a loan amount of Rs. 3.50 lakhs and the tenure period for the loan is 5 years. I have been paying the EMI of Rs. 8000. I have got the loan as per they have promised time.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 07, 2019
    • Bank of Baroda Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      It has been a good experience i had with this loan. The loan amount which they had provided has been sufficient and the interest rate with them has also been nominal, there has not been any sort of additional charges which they had made for this loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 07, 2019
    • HDFC Bank Car Loan
      "Average Loan Experience"
      0.5 3.0/5 "Satisfactory"
      I have taken my car loan in 2015 with HDFC. I have purchased the loan amount of Rs. 5 lakhs approximately. I have done a pre-closure. I have completed the loan in 2.5 years There is no pre-closure charges. They have given me a interest rate of 8% and the EMI amount has been deducted from my account automatically.
      Was this review helpful? 1
      , mumbai
      Reviewed on Jan 07, 2019
    • HDFC Bank Car Loan
      "Interest rates are high"
      0.5 3.0/5 "Satisfactory"
      My car loan was purchased from HDFC Bank in 3 months before. I have purchased a loan amount of Rs. 5.21 lakhs and i have received the loan within a month. They have given me a offer for taking the car loan and there is a lesser documentation for this loan since i have taken loan already with them. I am making the EMI of Rs. 12500
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 07, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with HDFC bank for long time , the loan amount they have charged me was sufficient, the rate of interest they have charged me was nominal, and the processing fee they have not charged me it was zero processing fee,overall service was good.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 06, 2019
    Common Loader Icon

    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.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.