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

    Pune Used Car Loan

    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

    • Kotak Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with Kotak BANK , the process of getting loan was too fast i just got my loan in few days and loan amount 5 lakhs and 5 years tenure model of the car martui shift one time processing fee 4000rs. I even like the customer support approach.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 23, 2019
    • review Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      My Car loan with Bajaj Finserv was taken a long time back and it will be getting completed within sometime. The overall experience i had has been quite good, the loan amount has been sufficient and there was a nominal processing charges made by them. The interest rate with them had also been quite nominal.
      Was this review helpful? 1
      , chennai
      Reviewed on May 22, 2019
    • Axis Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken a Car loan from Axis Bank recently and the experience has been really good. The process in getting the loan did not took much time and they offered me with a good interest rate, They did not made any sort of extra charges and i am satisfied.
      Was this review helpful? 1
      , chennai
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken a Car loan from HDFC Bank a while back and the process in getting the loan was pretty much good. The interest rate has been nominal and there was some processing fee of 1500 which they had made. This loan will be completed in another year.
      Was this review helpful? 1
      , coimbatore
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has almost been five years since i have taken the Car loan from HDFC Bank and the experience has been really good. The loan amount was sufficient and the interest rate has been quite nominal. There was some charges which they had made as processing fee and the loan is closed.
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Best servivce"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with HDFC BANK , the process of getting loan was too fast i just got my loan in few days and i dont have to worry about document . The tenure period is good and they charge nominal rate of interest and also the processing fee charged by them is very much nominal.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using holding car loan with HDFC bank twice, i have taken swift dzire car and even innova car from this card, i am directly approach this bank , the loan amount which they have given to me was sufficient, the rate of interest they have charged me up to 8.5% which was nominal, even they have charged me 0.5% processing fee which was minimal.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 21, 2019
    • SBI Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan in SBI bank for more than one year. The loan amount was sufficient which was given from bank for the tenure of 5 years. The rate of interest is less when compare to other bank. The processing fee was applicable. The customer service is good.
      Was this review helpful? 1
      , new delhi
      Reviewed on May 21, 2019
    • 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
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