• Mumbai Used Car Loan

    Mumbai is one of the busiest cities in India. Its allure has thousands of people flocking to it in the hope of fulfilling their dreams, which makes it even busier and busier as each day goes by. And when you are in Mumbai, you never get bored. You can enjoy its delicious street food, take long walks on the beach, shop from its endless cheap and super-luxurious store options, and go for long rides to enjoy its scenic beauty. From busy millionaires to hard-working labourers, from artists to analysts, and from dreamers to thinkers, Mumbai is a home for all.

    Owning a car in Mumbai

    Mumbai is one of the largest metropolitan cities in India with people always rushing to get where they need to be. Due to this, there are many modes of transport available within the city. Using its bus or metro services, you can always get connected to any part of the city. But being the proud owner of a car has a unique feeling to it. You can either use it to commute to work more easily instead of wasting too much time waiting for public transport that is usually packed with people or you can use it to get away from the hustle and bustle during the weekends.

    Why should you opt for a used car?

    Here are some of the reasons why used cars are a very good option:

    Lower cost: The cost of brand new cars is often high, which can make you hesitant on buying the car, or may cause you to give up on the thought of owning your dream car completely, but used cars are much more affordable. If you have set your sight on a certain type of car but do not have sufficient funds to purchase the car, you can always opt for an older model of the same car, which will be cheaper. You also have the option of purchasing a car model of a higher-end with the amount of funds you have at your disposal.

    Tension-free drive: Since you will be less concerned about getting the first scratch or dent on a used car than you would with a brand new one, you will be able to drive more freely. This is an important aspect to consider especially if you are not a skilled driver or are just learning to drive.

    Lower depreciation rate: The value of a new car depreciates rapidly, especially during the first 3 years of its purchase. If you plan to sell your car after a few years of its purchase, you will be losing quite a large sum of money. But the value of a used car is already depreciated, and after 3 years of its purchase, the depreciation rate slows down drastically. You will end up losing lesser money comparatively when you sell the car.

    Certified dealerships: These days, used cars are fully inspected by certified dealers before they are put up for sale. This ensures that you don’t get a bad deal when you spend your hard-earned money on a used car. However, it is up to you to do your research and purchase your car only from trusted and certified used car dealers.

    Fewer taxes: When you purchase a brand new car, you incur a lot of expenses on top of the cost of the car, such as handling charge, RTO charge, insurance charge, warranty, and a variety of other charges. On the other hand, used cars usually do not have extra expenses and you usually end up paying what is mentioned up front. Purchasing a used car can be even cheaper for you if you opt for one that is already insured or is under warranty.

    Auto finance for your dream car

    When you do not have sufficient funds to purchase a car, you can get financial help from banks and non-banking financial institutions (NBFCs). These lending institutions offer new and used car loans that finance up to 80% of the cost of the car at different interest rates. You can send in your applications to these institutions and if you meet their eligibility criteria, your loan will be approved. After the loan approval, the money is disbursed directly to your account. You can then repay the loan by paying equated monthly instalments (EMIs) over a specified tenure, which you can choose according to your convenience.

    How can you apply for a used car loan in Mumbai?

    There are 2 ways of applying for a used car loan in Mumbai: online or offline. In order to apply for a used car loan offline, visit the nearest branch of your bank, fill in a used car loan application form, and submit it along with the documents mentioned in the form. Once you submit your application, a representative of the bank will get in touch with you to take the application forward.

    While applying for a used car loan online, you can visit the website of your banking partner or any other financial lending institution and fill a used car loan application form. You may be required to upload the necessary documents on to their website or a representative of the institution may get in touch with you in order to collect a copy of your documents.

    When applying for a loan, make sure to visit the websites of different banks and NBFCs or visit them in person, see what they have to offer, compare the offers, choose the best one that suits your needs, and submit your application. Your used car loan application has lower chances of being approved if you submit multiple applications to multiple banks and NBFCs.

    What is the eligibility for a used car loan?

    When you apply for a loan, the most important factor considered by lending institutions is your loan eligibility. Different banks and NBFCs have different eligibility criteria for used car loans and here are some of the basic ones:

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

    If your credit score is below 750, work on improving your score before you apply for a used car loan as a loan rejection will further impact your credit score negatively.

    What are the documents required for a used car loan?

    To apply for a used car loan, you need to submit the following documents:

    • Proof of identity such as Aadhar card, PAN, voter ID, or passport.
    • Proof of age such as birth certificate, 10th and 12th school certificates, or driver’s license.
    • Proof of address such as telephone or electricity bills.
    • Proof of income such as the last 3-6 months’ payslips or bank statements along with the IT returns.

    What are the features of a used car loan?

    Interest rate: The rate of interest charged for used car loans varies from one lender to the other. The interest rate for used car loans is usually higher than the rate of interest for a new car loan because used cars have higher insurance and maintenance cost.

    Processing fee: In order to process your used car loan, financial institutions usually charge a small fee, which is known as a processing fee. This fee is usually about 2% of the entire loan amount. Once your loan is approved, the processing fee will be deducted from the principal amount that is disbursed to your account. If you are a valued customer, you can talk to your bank to get the processing fee waived off, but the decision depends entirely on the bank.

    EMI: You have to repay your used car loan in EMIs over a specified period of time. Your bank will calculate the EMI and will inform you of the same before disbursing the principal loan amount into your account. You can ask the bank for a loan repayment schedule in order to know how much you have paid and how much you still owe the bank after paying each EMI.

    Prepayment and preclosure fee: After you have paid 6-12 EMIs, you have the option of prepaying the remainder of your loan amount or making part payments to pay off the loan amount quicker. However, you may be charged a prepayment or a preclosure fee. This fee varies from lender to lender and depends on the remaining tenure of your loan.

    Foreclosure: In case of a used car loan, your car acts as a collateral. If you fail to pay your EMIs, the bank will repossess the car and will sell it off in an auction to retrieve the remaining dues. If the bank fails to retrieve the entire remaining amount due at the auction, you may be required to pay the rest. This process of repossession is known as foreclosure, which negatively impacts your credit score and makes it difficult for you to get loans approved in future.

    How to calculate your used car loan EMI

    Your used car loan EMI depends on the principal loan amount disbursed to your account, the interest rate, and the loan tenure. It is often difficult to calculate the EMI manually as it is prone to errors. For quick and accurate calculation of your loan EMI, you can use an online EMI calculator.

    Such tools are easily available on the internet and all you have to do is input the used car loan amount, the interest rate, the loan tenure, and the processing fee into the tool. The tool will take all the information you have put in into account and will give you the exact amount you need to pay each month instantly.

    The car loan EMI calculator will also give you a detailed breakdown of your entire repayment schedule in the form of a table, which is known as an amortisation table. In this table, you can also see the outstanding loan amount due after you pay each EMI and the amount you pay as interest each month.

    Compare used car loans

    Lender Loan Amount Interest Rate Tenure
    Magma Fincorp Up to 90% of the total value of the vehicle 16% - 20% p.a. Up to 15 years
    Axis Bank Minimum - Rs.1 lakh Maximum- Up to 90% of the total value of the car Minimum 15% p.a. Up to 5 years
    Kotak Mahindra Prime Minimum - Rs.1.5 lakh Up to 90% of the total value of the vehicle 15% - 20% p.a. Up to 5 years
    HDFC Bank Minimum - Rs.75,000 Maximum - Up to 85% of the total value of the car 12% - 15.5% p.a. Up to 7 years (The age of the car should not be more than 10 years at the time of car maturity)
    TVS Credit Services Minimum - Rs.20,000 Maximum - Up to 85% of the total value of the car 13.1% - 15% p.a. floating Up to 5 years

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    Customer Reviews

    • Axis Bank Car Loan
      "Average"
      0.5 4.0/5 "Great!"
      Through showroom got suggestion to take a car loan from AXIS bank. I taken this loan on 3 years back. I got the loan amount of 4L with tenure period of 4 years. The rate of interest was okay. I done the down payment of around 1.5L. EMI need to pay of 10,500 rupees. The car model is Swift Dzire. I taken for commercial purpose based on amount which I get on monthly doing the EMI payment.
      Was this review helpful? 38
      , kolkata
      Reviewed on Mar 21, 2020
    • Kotak
      Kotak Car Loan
      "Good "
      0.5 4.0/5 "Great!"
      I have taken car loan directly through Kotak Mahindra Bank. The car is secondhand and the model was INNOVA 2015 and the loan is still active and paying the premium on EMI basis .The rate of interest and the processing fee was nominal and they given a good service.
      Was this review helpful? 27
      , tirupur
      Reviewed on Mar 20, 2020
    • HDFC Bank Car Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      I have taken car loan directly through HDFC bank.The car model was TATA Nixon and still this loan is active. The rate of interest and the processing fee are medium it was 10.99% and this loan was sanctioned immediately within 2 to 3 days got the loan. Everything was fine so far until this loan was sanctioned .
      Was this review helpful? 33
      , chennai
      Reviewed on Mar 19, 2020
    • HDFC Bank Car Loan
      "Easy loan approval"
      0.5 4.5/5 "Excellent!"
      I have chosen car loan from HDFC Bank on 3 years back. I made the down payment of Rs. 1.50L and the loan amount was Rs. 4.80L. The rate of interest was normal and i am paying EMI amount of Rs. 12,157 and i have purchased Swift BSI. I given my documents to the showroom itself without any difficulty.
      Was this review helpful? 24
      , jaipur
      Reviewed on Mar 18, 2020
    • review Car Loan
      "Best Service"
      0.5 4.0/5 "Great!"
      I have taken car loan through Tata Capital Ltd directly .The vehicle name is Hyundai Eon and this loan was sanctioned on proper time frame .This loan is still active and paid the premium on Emi basis.Customer service was good to me so far .The rate of interest and the processing fee was medium.
      Was this review helpful? 20
      , jaipur
      Reviewed on Mar 16, 2020
    • Tamilnad Mercantile Bank Car Loan
      "Average Service"
      0.5 2.0/5 "Expected more"
      I have taken car loan directly through Tamilnad Mercantile Bank.The rate of interest was very high, it was 14%.This loan was sanctioned on time without any delay .The car model was Maruti Suzuki Alto k10 vxi and there was no difficulties faced so far .This loan is still active and everything was good.
      Was this review helpful? 14
      , surat
      Reviewed on Mar 15, 2020
    • ICICI Bank Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      From ICICI Bank, i applied a car loan and the loan amount was Rs. 3.50L. I made a down payment of Rs. 90k and the rate of interest was normal. I have given my documents to the showroom and am planning to close the loan with in 2-3 months. I have purchased a Maruthi car.
      Was this review helpful? 21
      , chennai
      Reviewed on Mar 15, 2020
    • ICICI Bank Car Loan
      "Need to be zero for pre closure charge "
      0.5 3.0/5 "Satisfactory"
      I chosen ICICI car loan offer through showroom. I taken this loan on 2 years back for the amount of 8L which is sufficient with tenure period of 5 years. On that time rate of interest was lower when compared to other bank. The processing fee is less. The car model is TATA Nexon. I done the down payment of 2.8L. EMI need to pay of 17K. For pre closure is applicable with huge charge. So I didn't go for that option.
      Was this review helpful? 18
      , hyderabad
      Reviewed on Mar 11, 2020
    • Axis Bank Car Loan
      "Excellent service "
      0.5 5.0/5 "Blown Away!"
      My car loan journey started with Axis bank which was availed directly.The vehicle name is Maruti Ertiga and this loan is still active .The rate of interest and the processing fee was nominal .This loan was sanctioned on time without anydelay .I am paying the premium on EMI basis and there is no delay charges .
      Was this review helpful? 31
      , bangalore
      Reviewed on Mar 10, 2020
    • HDFC Bank Car Loan
      "Quick process"
      0.5 5.0/5 "Blown Away!"
      Maruti showroom suggested to take car loan from HDFC on few months back. They have sanctioned the loan within one week.The amount got 6L with tenure period of 7 years. An interest rate of 9%. I done down payment of 1L. EMI need to pay of 9637 rupees. The car model is Maruti new swift. Their service is good.
      Was this review helpful? 36
      , kanchipuram
      Reviewed on Mar 09, 2020
    • YES Bank Car Loan
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      I have availed car loan through YES bank directly.still this loan is active .The car model was Hyundai Creta and the rate of interest was quite nominal it was 9.60%and processing fee was very high. This loan was sanctioned on faster basis ,the loan process was clearly shared by the agent . I am paying the premium on EMI basis which will be done on time.
      Was this review helpful? 22
      , agra
      Reviewed on Mar 06, 2020
    • ICICI Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through ICICI bank .The rate of interest and the processing fee are pretty nominal and the car name is Maruti Suzuki Swift. I am paying the premium on EMI basis and need to pay the amount of 10,000.The loan was sanctioned on time without any drawbacks.
      Was this review helpful? 22
      , bangalore
      Reviewed on Mar 05, 2020
    • HDFC Bank Car Loan
      "Good Loan Service"
      0.5 4.0/5 "Great!"
      My car loan is going to be completed in this November. My salary goes into HDFC bank hence the guy keep on calling me to take the loan hence I have selected the car loan from same bank. In 2013, I have purchased the car loan by paying the down payment of Rs. 3.5L. Took the loan amount of Rs. 3.8L. I pay EMI amount of Rs. 6948 every month.
      Was this review helpful? 31
      , jammu
      Reviewed on Mar 05, 2020
    • ICICI Bank Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      I chosen car loan from ICICI on 4 years back. I bought this loan because one of my friends was working as a bank manager. I made the down payment of Rs. 2.5L and I bought the loan amount of Rs. 4.5L. I have no idea about the interest rate. I was paying EMI amount of Rs. 7,000 when I purchase the card and it keeps on in ascending order just because of my increment amount I can close at early.
      Was this review helpful? 20
      , rajkot
      Reviewed on Mar 05, 2020
    • Kotak Car Loan
      "Less interest rate loan"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken from Kotak Mahindra bank because an interest rate is less. I have taken the loan amount of Rs. 7L and I made the down payment of Rs. 5L. I have selected the duration of 5 years. I have been paying EMI amount of Rs. 14,000 per month. Documentation process was hassle free.
      Was this review helpful? 34
      , bangalore
      Reviewed on Mar 05, 2020
    • ICICI Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan through ICICI bank directly .The vehicle name is Hyundai Creta and this model was of 2018 this loan was a joint loan with my wife and still this loan is active ,premium on emi basis and there is no ppenalty for delay emi and the loan process was clearly shared by the agent .without any hassle got the loan .
      Was this review helpful? 26
      , ahmedabad
      Reviewed on Mar 05, 2020
    • HDFC Bank Car Loan
      "Fast approval loan"
      0.5 5.0/5 "Blown Away!"
      I have purchased my car loan with HDFC bank which i have taken in the month of December. There is no interest rate on fast approval so that reason i have availed this loan. I have taken the loan amount of Rs. 12.34 lakhs and i made the down payment of Rs. 50000. They have sanctioned my loan in 1 day.
      Was this review helpful? 47
      , vadodara
      Reviewed on Mar 05, 2020
    • Bank of India Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have taken car loan directly through Bank Of India .The car model was 2018 and the name is Mahindra XUV and this loan is still active and paying the premium on EMI basis .The rate of interest and the processing fee was nominal .This was a joint loan with my father.
      Was this review helpful? 26
      , indore
      Reviewed on Mar 04, 2020
    • IndusInd Bank Car Loan
      "Best service "
      0.5 5.0/5 "Blown Away!"
      From INDUSIND Bank, i have taken a car loan and the loan amount was Rs. 4.50L and i made down payment Rs. 1.80L. Pre closure is there and the rate interest was normal , emi of Rs.9600 i am paying for the tenure of 5 years. Recently done a top up on this loan for personal use.
      Was this review helpful? 40
      , tirunelveli
      Reviewed on Mar 04, 2020
    • SBI Car Loan
      "Good loan offer"
      0.5 5.0/5 "Blown Away!"
      I got car loan offer from SBI which showroom suggested to apply. The rate of interest is 9.7% is fine. I taken this loan on 3.5 years back. The amount was sanctioned of 6L was sufficient with tenure period of 5 years. The car model Mahindra E2O. I have not any down payment. There are pre closure and part payment are applicable.
      Was this review helpful? 72
      , bangalore
      Reviewed on Mar 04, 2020
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