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

    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

    • 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
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