Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply
Quick Links for loans
Quick Links for Insurance
Investment
Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Vehicle > Used Car Loans: 7 Things You Must Know

Loan for Vehicle

Used Car Loans: 7 Things You Must Know

Used Car Loans: 7 Things You Must Know

When owning a new car seems to be a distant dream because of the high prices associated with it, you can still fulfill your dream of buying a car by investing in a used car. In India buying a car is the second biggest investment made in the lifetime of an individual, the other being buying a house. However, sudden financial responsibilities often creep into the modern lifestyle without giving a knock.

Know More About Used Car Loan

With major auto companies arriving at the market of buying and selling used cars, India has become a huge market for used cars. Many people who are fond of changing cars prefer buying used cars than the new ones as the latter are way too expensive. Buying a used car also saves you from paying taxes which you have to pay otherwise in buying a brand new car like road tax, loading charges, insurance, state MCD charges, and more. And, this may be a valid reason why over 3 million used cars are sold as against 2.2 million new cars, per year in India. Also, there is a sharp depreciation in car prices. For instance, as soon as the car comes out from the showroom, its price decreases by 10 percent. Whatever be the reason, if you are planning to avail a used car loan,

Here 7 points that can help you take an informed decision-

  • Personal loan vs. used car loan- Since the amount to be borrowed is comparatively less; people seldom tend to take a personal loan, and not used car loan for buying a used car. Here, the most important factor is comparing their car loan interest rates. Go with the one that offers a lower interest rate. Also, don’t forget to check the processing fees.
  • Decide the model and type of the car- Banks and financial institutions will look at the age and condition of the car before approving your loan application. Ensure that the car will meet all your requirements and is pocket - friendly with less maintenance.
  • Loan Tenure- The maximum tenure for used car loans is 5 years in most of the banks and other financial institutions. Your lender will approve loans and decide tenure based upon the age and condition of the car. If the car requires a lot of maintenance, the amount sanctioned will be less. Also, you must avoid buying used cars with an age of more than 5 years as lenders can deny giving loan against such asset which requires a lot of maintenance.
  • Credit Score- You may be denied a personal loan if you have a bad CIBIL score, but you may be able to enjoy lower interest rates with a used car loan as a car loan is a secured credit.
  • Documents Required- Per Tata Capital, the documents required for applying a used car loan include ID proof, address proof, signature verification proof, photograph, ITR/salary slips, Form 16, and bank statement for last three months.
  • Choosing the Right Lender- Look for a lender that promises transparent, quick, and simple processing. Customized loans will be an added advantage. And, of course, the most important factor is checking their car loan interest rate.
  • Maximum Loan Amount- When you apply for a used car loan, the lender sends its surveyor to evaluate the car. Based on his valuation, the maximum loan amount is limited to 70- 80 percent of the valuation amount. However, Tata Capital offers a loan up to 90 % of the valuation of the car or sale price whichever is lower. The minimum loan amount that Tata Capital offers is INR 1,25,000.
Apply Now
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.