Used car loans are basically the loan that you take for purchasing a second hand or a pre-owned car. Generally, the maximum tenure of the loan for the used vehicles may range from 10.50% and 8.9 for the floating rates. In addition, the maximum loan tenure for pre-owned may range up to 5 years. Here we will talk about the interest rates for used car loan. You can avail a used car loan at either a floating and fixed interest rate. Therefore you can make use of exciting offers by applying for a used car loan through various banks.
Down below, the interest rates for Used Car Loan in India are:
Fixed – 13.00%
Rs.2,275 for a tenure of 5 years
80% of total market value
SBI Car Loan
Floating – 12.60%
Rs.1,798 for a tenure of 7 years
85% of the total on-road price
Fixed – 17.00%
Rs.2,485 for a tenure of 5 years
90% of the total market value
Fixed – 10.50%
Rs.2,149 for a tenure of 5 years
80% of the total market value
Union Bank of India
Floating – 11.85%
Rs.2,217 for a tenure of 5 years
50% of the total market value
Punjab National Bank
Floating – 11.20%
Rs.2,184 for a tenure of 5 years
70% of the total market value
Central Bank of India
Floating – 9.95%
Rs.2,122 for a tenure of 5 years
75% of the total market value
There are some factors that affect loan interest in India:
- Credit history– In case of determining your loan interest, Credit history plays an integral role in the used car finance. Thus, it is always advisable to have a credit score of 750 and above in order to receive a lower interest rate.
- Level of income– A lower amount of debt-to-income ratio is typically appropriate while availing of a used car finance in India. Therefore, this means that the lender will not falter in the EMI payments and also he will not delay the same since he or she has a steady source of income with fewer debts.
- Loan tenure–It is a known fact that longer the loan tenure, lower will be the rate of interest. Therefore, you should opt for a tenure that is best suitable to your financial condition.
In order to apply for a used car loan, you need to have the following documents:
For Salaried individuals: Identity Proof such as PAN, Passport, Aadhar, Card, Voter Id and an Employee Id issued by the Government of India.
Self-employed: If you are a self-employed individual, you must have your Passport, PAN Card, Driving License and Sales Tax Registration Certificate
Passport, Telephone bill, Lease Agreement, Utility Bill and Bank Statement. Address Proof requirement for salaried and self-employed buyers are the same.
For the Salaried Class: Latest 3 to 6-month salary slip and form 16 / IT return
For the self-employed: Income Tax returns for the past 2 years. You will need it with the Balance sheet as well as P & L A/C, computation of income. If the ITR is audited than the audited report along with the annexures are also required
The document is indicative and the sales representative will provide further details upon the meeting.