Which banks are good for Used Car Loan?
Banks mentioned below are considered to be good in terms of rates : -
- State Bank of India
- TATA Capital
- Axis Bank
- Kotak Mahindra Bank
- Mahindra Finance
| Bank Name | Min Interest Rate | Foreclosure Charge | Processing Fee | Max Loan (Lacs) | Max Tenure (Month) | |
|---|---|---|---|---|---|---|
|
13.00%
|
4%
|
2%
|
200
|
360
|
|
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|
14.50%
|
4%
|
2%
|
200
|
360
|
|
|
12.00%
|
4%
|
2%
|
200
|
360
|
|
|
14.80%
|
4%
|
2%
|
200
|
360
|
|
|
15.00%
|
4%
|
2%
|
200
|
360
|
|
|
9.90%
|
4%
|
2%
|
200
|
360
|
|
| Bank Name | Min Interest Rate | |
|---|---|---|
|
|
13.00% |
|
|
|
14.50% |
|
|
|
12.00% |
|
|
|
14.80% |
|
|
|
15.00% |
|
|
|
9.90% |
|
Get 90% of finance on your used car with lowest interest rate, compare various banks & lenders offers that match your requirements. Before applying for used car loan check your eligibility criteria that you match or not to avoid any kind of loan application rejection.
Usually, used car loan Eligibility Criteria depends on various factors like age of applicant, monthly salary or business income of co-applicant & residency..etc.
Note: - You can avail minimum loan amount as 3 lakh & maximum loan amounts as 10 lakh on availing used car loan.
There are Top factors that generally affects Used car loan Eligibility Criteria as given below: -
Credit Report: - Generally this is a common factor consider while applying for any types of loan, wherein higher credit score won’t only help you to get loan approval but also aid you to negotiate better used car loan interest rate.
Applicant Age: - As the used car loan age limit is 21 to 65 years of age, above the age or below the age won’t make you to apply for the loan as per standard terms & conditions. Therefore, ensure that your meet the criteria.
Annual Income: - You might be getting the loan by pledging your used car, but certain things lenders will consider while approving your loan application as a salaried your minimum annual income to be 2,50,000 or if you are self-employed your annual turnover should be 4,50,000 per annum.
To increase Used car loan eligibility, you need to consider Top 3 points as given below, this will aid you in increasing your eligibility level.
Maintain good credit score: - This is the best way to increase used car loan eligibility criteria, by maintaining a good credit score you make the confidence to lender that you are enough capable to repay the loan amount without any default & this what every lenders look for providing loan.
Income Level: - Apart from good credit score, your income matters. Therefore, make sure your income level would a bit higher than the minimum expectation from lenders. This will aid you get loan without any difficulties facing.
Opt for Longer Tenure: - Try to choose longer tenure period to pay back the principal amount as it will improve your eligibility because longer tenure generally refers to low monthly EMI which will rescue from any delay or not pay payment lower EMI as much affordable to pay.
Which banks are good for Used Car Loan?
Banks mentioned below are considered to be good in terms of rates : -
What are the facility available for Used Car Loan?
Top –up & refinance facility are available for Second Hand Car Loan.
How much loan can I get in Used Car Loan?
You can get up to 250% of your car value as a loan amount.
How to get Used Car Loan from bank?
Before applying for Used Car Loan, you need to choose the car for which you want to do finance. Once chosen your bank too, visit online or contact the bank by visiting directly & requesting for online application. After filling form attach required documents with it & submit. Shortly their customer representative will contact you to clarify rates & terms for final confirmation. If you agree with it soon disbursement will take place.
What is Used Car Loan Interest Rate?
General Interest Rates range from 12.00% to 15.00% per annum.
Why are Interest Rates higher on Used Cars?
It is because of the level of risk increases for bankers as second hand used vehicle contains high risk of usage.Therefore, if applicant failed to pay back the principal amount it can’t be equalized by auction the used vehicle, hence the rates are slightly higher.
How does calculator for Used Car Loan works?
Calculating Used Car Loan is too easy, just you need to enter loan amount, Interest Rate & tenure it will do auto –calculate in seconds & present you the scheduled monthly payment chart with the ratio bar.
What are the benefits of Used Car Loan?
Why are interest rates higher on Used Cars?
It is because of the level of risk increases for bankers as second hand used vehicle contains high risk of usage.Therefore, if applicant failed to pay back the principal amount it can’t be equalized by auction the used vehicle, hence the rates are slightly higher.
What is Used Car Loan?
Several banks offers Used Car Loan which allows you to purchase a good conditioned second hand car at good rates.
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CA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
Read MoreCA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
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