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  • Pune Used Car Loan

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  • Pune is one of the largest city in Maharashtra, second only to Mumbai. It has a large number of educational institutions, making it one of the major educational hubs of the country. For this reason, it attracts many students from within the country and from abroad every year. The city is also a very popular tourist destination because of its rich history, abundance of spectacular monuments, and pleasant sceneries.

    Owning a car in Pune

    Since Pune is a large city in terms of area, it has a very good network of public transport such as local trains and buses. Although there is no shortage of public transport within the city, it can be a bit of a hassle to board one during rush hours. In such situations, it does help to have your very own car. You can commute to work or can travel to nearby destinations with ease and on your own terms. Holding the steering wheel of your very own car also has a special feel to it, which can give you a sense of accomplishment.

    Why should you opt for a used car?

    Used cars have a number of benefits and here are some of them:

    • They are easier on your pockets: When you are planning to buy a car, you not only have to consider the brand and the model of the car but also its cost. If you do not have sufficient funds to purchase a brand new car of a specific model, you can always opt for a used one. It can be even cheaper for you if you opt for an older make of the car. You also have the option of choosing a higher-end used car of the higher end instead of a lower-end new car with the amount of money you have.
    • You are less worried about damaging your car: When you buy a brand new car, the tension of scratching or denting it will always be on your mind, which will make you think twice about driving on rough or narrow roads. But with a used car, you are less worried about the damage. This can be a very good thing for you if you are new to driving.
    • The depreciation value of the car is low: As soon as you purchase a brand new car and take it out for a drive, its value decreases drastically as it falls under the “used” category now, and this value keeps on depreciating rapidly during the first 3 years of its purchase. After this period of 3 years, the value of a car depreciates at a much slower rate. This means that if you buy a car that is 3 years old or older, you will be losing less money when you decide to sell it off after a while.
    • Certified dealers ensure your car is in good condition: These days, you no longer have to worry about being conned by a cunning car salesman set to sell you a faulty car. Due to the popularity of used cars, many certified used car dealers have come up who check the cars and ensure they are well maintained before putting them up for sale.
    • Used cars can be under warranty: Newly launched cars now come with a longer warranty period than they used to. This means that you can save quite a bit of money on the warranty charges when you purchase a car. Also, when a car is within a warranty period, you can claim warranty for its damages.
    • You pay few taxes: When you buy a new car, you have to pay handling charges, RTO charge, and insurance charge, which can increase the final amount you need to pay to quite an extent. But with a used car, there are usually no extra charges so you end up paying what is mentioned, making it easier to calculate your finances.

    Used car loan

    The funds you have at your disposal may not always be enough to buy the car you desire. Luckily there are financial lending institutions like banks and non-banking financial companies (NBFCs) that offer loans for new cars as well as used ones. These institutions offer loans of up to 90% of the total cost of the pre-owned car. Some lenders may offer even more depending on their terms and conditions.

    As long as you are a salaried or a self-employed individual who meets the eligibility criteria set by the bank, you can get your used car loan approved. You can repay the principal loan amount along with the interest in the form of equated monthly instalments (EMIs) over a specified tenure.

    Here are some financial institutions that offer used car loans in India:

    Lender Loan Amount Interest Rate Processing Fee Tenure
    HDFC Bank Up to 90% of the purchase price of the used car 11.50% to 17.50% p.a. Rs.5,000 or 2% of the used car loan amount (whichever is lower) 1-7 years (the age of the car should not be more than 10 years by the end of the loan tenure)
    Sundaram Finance Up to 85% of the purchase price of the used car 12% to 14% p.a. Rs.2,500 (a one-time processing fee) 1-3 years (the age of the car should not be more than 8-10 years at the end of the loan tenure)
    TVS Credit Services Up to 85% of the purchase price of the used car 13.1% to 15% p.a. Rs.9,99 + GST 1-5 years
    Kotak Mahindra Prime Up to 90% of the purchase price of the used car 15% to 20% p.a. Rs.3,300-4,750 with applicable service tax 1-5 years
    ICICI Bank Up to 80% of the purchase price of the used car 10% to 17.65% p.a. Rs.6,000 or 2% of the used car loan amount (whichever is lower) 1-3 years

    Eligibility criteria for a used car loan

    The eligibility criteria for used car loans are the following:

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

    The eligibility criteria of different lenders may slightly vary from one another. Checking the websites or talking to their customer care executives of each lender will give you a clearer idea of whether you are eligible for a used car loan or not.

    The chances of your loan getting approved or rejected depends on your eligibility. Before you send in your loan application, you need to make sure that you are eligible for a used car loan because a loan rejection can negatively impact your credit score. A bad credit score will make it harder to avail a loan from future loan prospects.

    Documents required for a used car loan

    In order to avail a used car loan, you need to submit your proof of identity, age, income, and address. Here are a few documents you can submit to the bank:

    • Identity proof: Aadhar card, voter ID, PAN card, or passport.
    • Age proof: PAN card, passport, birth certificate, voter ID, or driving license.
    • Address proof: Ration card, passport, or utility bill.
    • Income proof: IT returns, 3 months’ salary slips, 3-6 months’ bank statements.

    How to apply for a used car loan online?

    In order to apply for a used car loan online, you first need to visit the websites of different banks and non-banking financial companies. Check each feature of the loan, such as interest rate, processing fee, prepayment and preclosure fee, and tenure. Compare the offers from each bank and choose one that best suits your requirements and is financially beneficial to you.

    Once you have made a choice, download their application form, fill it, and submit it along with the mentioned documents. After you have successfully submitted your loan application, an agent of the bank or NBFC will get in touch with you to take the loan application further.

    How to calculate your used car loan EMI

    Calculating your loan EMI manually is a tedious process and is prone to errors. Luckily, there are many online tools available that help you calculate your EMI with ease. All you need to do is input the car loan amount, tenure, processing fee, and interest rate into the tool. You can then click on the ‘Calculate’ button to get accurate results instantly. You can input different combinations of these values, according to what different banks have to offer, to make comparisons and to see which offer suits you best. Some tools not only show you the EMI amount but your repayment schedule in the form of an amortisation table.

    Things to remember when applying for a used car loan

    Being extra careful when dealing with things that involve money will save you from getting into a sticky financial situation later on in life. Although owning a car is an exciting feeling, you should never rush yourself when applying for a car loan. Take your time and make sure you have all the necessary information before you commit yourself to repaying a huge loan amount over a specific period of time. Here are a few things to consider before availing a used car loan:

    • Interest rates: The sum of money you need to pay as interest on a particular loan depends on the interest rate, which varies from lender to lender. Opting for a loan with a lower interest rate will result in a lower EMI and the total amount of money you pay toward clearing off the loan.
    • Loan tenure: The tenure of a loan is a very important factor you need to consider when availing one. Choosing a longer tenure will reduce the amount of the EMI but will result in a higher amount of interest.
    • Processing fee: When banks process your used car loan, they usually do it for a small fee, which is about 2% of the entire loan amount. When the loan amount gets disbursed to your account, this amount will be deducted from the principal loan amount. If you are an existing customer with a good track record, you can talk to your bank to get this fee waived off, but the final decision will depend entirely on the bank.
    • Down payment: Banks and NBFCs usually finance up to 90% of the cost of a used car, which means you will need to pay the remaining by yourself as down payment. If you opt to pay a higher sum as down payment, you can apply for a lesser loan amount, which will result in lower EMI.
    • Prepayment and preclosure fee: After you have successfully paid 6-12 EMIs you will get an option to make part payments or a full prepayment to clear off your loan before the set tenure. Though this will save you some money in the long run, you may be required to pay a fee for it. The amount charged as fee varies from lender to lender.
    • Foreclosure: Usually in case of car loans, whether new car loans or used car loans, the car that is bought with the loan amount acts as a collateral. If you are unable to pay the EMIs, the bank will repossess your car and sell it off at an auction to recover the remaining loan amount. This process, known as foreclosure, negatively impacts your credit score and lowers your chances of getting loans approved in future.

    When availing a used car loan, it is advisable that you know what you are getting yourself into. Read the terms and conditions of the loan carefully and plan your budget well. If you feel you will be able to handle the financial burden, only then, go ahead with the loan application.

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    Customer Reviews

    • IndusInd Bank Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directy through Indusind Bank.The car model was Maruti Suzuki Swift and taken on the year of 2018 october month .I have got the loan amount on exact time frame and there was no difficulties faced so far .The agent shared all the details about this loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 09, 2019
    • HDFC Bank
      HDFC Bank Car Loan
      "Good Service"
      0.5 4.5/5 "Excellent!"
      I have taken car loan directly through HDFC Bank. I was not having any issues with the rate of interest and the processing fee.The card model was Hyundai I 20and this loan was sanctioned on time and this was a paperless approval .I am satisfied with the service so far .
      Was this review helpful? 3
      , bangalore
      Reviewed on Dec 05, 2019
    • TVS Credit Services Car Loan
      "They need to improve on customer care"
      0.5 4.0/5 "Great!"
      Bought the car loan from TVS Credit financial service because that time i am not aware of the second hand car loan provider. They provided me a interest rate of 14%. Actually the response was not good in the customer care because they are asking the registered mobile number. They are asking all the details even though i have provide all the correct details, they are saying that i need to call from the register mobile number.
      Was this review helpful? 1
      , rajahmundry
      Reviewed on Dec 05, 2019
    • ICICI Bank Car Loan
      "Excellent Loan Service"
      0.5 5.0/5 "Blown Away!"
      Actually I am holding my salary account with ICICI bank so I got a chance to take the car loan from this particular bank. I got the loan amount of Rs. 2.75 lakhs and I don't remember about the interest rate since I got the loan on 2 years back. I have been paying EMI amount of Rs. 6,000 on every month. Total tenure period of the loan is 5 years.
      Was this review helpful? 1
      , pune
      Reviewed on Dec 05, 2019
    • IndusInd Bank Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have applied for INDUSIND Bank car loan through bank directly and availed as well .The rate of interest was very high, since requirement was there so taken this loan .The loan amount got sanctioned on time without any delay.The car model is Maruti Suzuki LXI . I have taken this loan for the past 1 year.
      Was this review helpful? 2
      , raigarh
      Reviewed on Nov 30, 2019
    • IndusInd Bank Car Loan
      "Good "
      0.5 4.0/5 "Great!"
      I have taken a car loan with INDUSIND bank on 4 years before. Through showroom I got a chance to apply loan in this bank. I need to pay 6,800 rupees for EMI. The amount of 3L sufficient with tenure of 5 years. I am not aware of interest rate detail. The car model is ALTO 800.
      Was this review helpful? 5
      , kochi
      Reviewed on Nov 28, 2019
    • Sundaram Finance Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through Sundaram Finance .The rate of interest and the processing fee was nominal .I have got the loan sanctioned on time .The documents was as per the norms and each and every detail was clearly explained by the agent .This loan is still active and the service was satisfied .
      Was this review helpful? 4
      , salem
      Reviewed on Nov 26, 2019
    • HDFC Bank Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      HDFC car loan is giving me a low interest rate hence I have chosen my car loan from this bank. I have purchased the loan on 2 years ago. They have sanctioned the loan immediately. Processing fee was a nominal one. I have been paying the EMI amount of Rs. 10300 and I have chosen the tenure period of 5 years.
      Was this review helpful? 3
      , kolkata
      Reviewed on Nov 26, 2019
    • HDFC Bank Car Loan
      "Simple process loan"
      0.5 3.0/5 "Satisfactory"
      Took my car loan from HDFC bank and in the year 2016, I have bought this loan. In the Maruti showroom, they gave me different option in that i have selected this bank, because i am holding a savings account with them. So I felt process would be easy. They gave me a car loan with the interest rate of 9.5%. I have paid the EMI amount of Rs. 8750 and I have pre- closed the loan and there is no additional charges for that.
      Was this review helpful? 2
      , tirupur
      Reviewed on Nov 26, 2019
    • HDFC Bank Car Loan
      "Instant loan approval"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from HDFC bank and the loan amount was Rs. 4,00,000. The rate of interest was 11.5% and emi I am paying Rs. 8,736. This is a instant loan approval compare to other, this bank is the best. This loan is applied from showroom and I had given all my documents to them itself.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Nov 25, 2019
    • SBI Car Loan
      "Very Good Loan Service"
      0.5 4.5/5 "Excellent!"
      For SBI car loan, they have charged me a interest rate of 9% which can be reduced hence i'm not happy with the loan. SBI is better and good for its loan service. I had applied the loan amount of Rs. 10 lakhs and for the other car loan its 2.5 lakhs. They have not taken more time to sanctioned my loan because they have disbursed the loan in 2 to 3 days.
      Was this review helpful? 2
      , navi mumbai
      Reviewed on Nov 25, 2019
    • Kotak Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have taken car loan directly through Kotak Mahindra Bank .The rate of interest was very high since had requirement taken this loan .The car model was 2019 and the name of the car is Hyundai Santro .I have got the loan sanctioned on time without any delay.This loan is still active and i have submitted the required documents also.The loan process was clearly shared by the agent .
      Was this review helpful? 1
      , new delhi
      Reviewed on Nov 23, 2019
    • SBI Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through SBI .The car model is Hyundai Accent and got the loan amount on exact time frame .Each and every details about the loan process was clearly shared by the agent .The rate of interest was very less and got the loan amount on time without any delay. Still this loan is active and not yet faced any issues until I got the loan.
      Was this review helpful? 3
      , jaipur
      Reviewed on Nov 23, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through HDFC Bank .The card model was Maruti Suzuki Alto LXI and the rate of interest was nominal.The loan amount got sanctioned on time without any delay .I have closed this loan successfully within 3 years and I am satisfied with the service so far .
      Was this review helpful? 4
      , hyderabad
      Reviewed on Nov 22, 2019
    • Toyota Finance Car Loan
      "Really cool loan"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken from Toyoto finance because the interest rate is very less and the process is very easy. They have provided the loan within two days. Interest rate was 9.99% and the processing fee was nil. I have chosen the tenure period of 5 years. I have made the down payment of Rs. 10 lakhs. Total cost of the car is Rs. 23 lakhs in that i got the loan amount of Rs. 13 lakhs. I'm paying the EMI amount of Rs. 28000.
      Was this review helpful? 3
      , bangalore
      Reviewed on Nov 18, 2019
    • ICICI Bank Car Loan
      "Very much happy"
      0.5 5.0/5 "Blown Away!"
      I have gone for a car loan in ICICI BANK, they have approved and sanctioned the loan within 24hours based on my savings account experience. So far, I have completed 9months and the total tenure is 3years. The interest rate is reasonable. They waived off the processing fee since a Privilege customer.
      Was this review helpful? 7
      , chennai
      Reviewed on Nov 15, 2019
    • Cholamandalam Finance Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan which was taken through cholamandalam finance .This was referred by car showroom dealer and the car model was Maruti Suzuki Swift.The rate of interest and the processing fee was nominal .The agent gave all the information about the loan process and within 4 days got the loan amount.
      Was this review helpful? 9
      , pune
      Reviewed on Nov 12, 2019
    • SBI Car Loan
      "Fast approval loan"
      0.5 5.0/5 "Blown Away!"
      Taken my car loan 4 months back. I have bought the loan amount of Rs. 10 lakhs and they have sanctioned the loan immediately and the documentation process was simple and good. Within 1 day, they have processed the loan. They have provided me a interest rate of 8% and i have chosen the duration of 120 months.
      Was this review helpful? 12
      , hyderabad
      Reviewed on Nov 12, 2019
    • SBI Car Loan
      "Low Interest rates"
      0.5 5.0/5 "Blown Away!"
      Bought my car loan from State bank of India its because of less interest rate when i compared with others. I got the loan amount of Rs. 3 lakhs and i haven't paid any down payment. I have paid the EMI amount of Rs. 10000 per month. I have selected the tenure period of 3 years.
      Was this review helpful? 8
      , new delhi
      Reviewed on Nov 10, 2019
    • Kotak Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken from Kotak Mahindra and i never had a chance to speak with their customer care because the amount is auto deducted from my account. Based on the eligibility, kotak mahindra bank has given me a car loan. The provided interest rate is nominal for me.
      Was this review helpful? 4
      , bangalore
      Reviewed on Nov 10, 2019
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