# Car Loan Interest Rates and Processing Fees

## Affordable interest rates

We at Tata Capital understand your needs well and so we have come up with a used car loan scheme with very attractive interest rates. We offer you interest rates as low as 13.5% which is the lowest in the industry for financing used car purchases.

## Processing Fees and Loan limits on Used Car Loans

We offer second hand car loan amount equivalent to 90% of the value of the used car. On select cars, we can even finance 100% value of the used car.

Our processing fees are 1.5% of the value of the loan with a minimum of Rs 5,000 and a maximum of Rs 15,000.

## How is used car loan EMI calculated ?

We use the following formula to calculate EMI

P(r/12)/ (1-(1+r/12) ^-m) where

r is the interest rate

m is the tenure in months

The interest is calculated on a monthly reducing balance basis. Since the EMI includes both principal and interest we have to apportion the EMI between principal and interest. Because we apportion a higher amount towards interest in the initial stages of the used car loan we are able to offer your equated monthly instalments that stay uniform throughout the tenure of the car loan.

Since manual calculation is a laborious process we have simplified the process by using technology. Our car loan EMI calculator does the calculations for you instantly and you can see the results also instantly. You can use the car loan calculator to see the effect of changes in the second hand car loan amount, tenure and interest rate.

## Floating and Fixed Interest Rates

We fix our interest rate based on a variety of factors. The main factor is the reference rate usually fixed by the RBI. When RBI fixes the reference rates it takes into account many factors that affect demand and supply for various goods and services in the market.

We offer you two options in car loan interest rates - floating rate or fixed rate. The effect of the two types of rates is seen in the EMI.

In fixed rate, the EMI stays uniform throughout the tenure of the car loan. For instance, if the EMI is Rs 9,000 and the tenure is 60 months the EMI stays Rs 9,000 for each of the 60 months of tenure.

In floating rate, the EMI can vary either up or down based on the reference rate. For instance, in the above example, the EMI could be Rs 9,000 for the first year and go up to Rs 9,400 in the second year and come down to 9100 in the third year and to 8700 in the fourth and fifth year.

It is also possible to maintain the constant EMI in a floating rate situation by increasing the tenure or reducing the tenure as the case may be.

## What does your interest rate depend upon ?

The interest we charge you on your car loan depends upon

• The reference rate as declared by RBI
• Our costs of operation
• Competitor rates

## Are you eligible to take a car loan ?

You are eligible to take a used car loan if you are earning income as

• A salaried individual
• A self-employed proprietor of a profession or business
• A self-employed individual who is a partner in a partnership business or profession
• A person earning income from your position as a director in a private or public limited company

Check your used car loan eligibility before you apply!

## How Much EMI do you have to pay ?

For your easy reference and calculation, we provide you an EMI calculator that you can use as follows

• Input the car loan amount, interest rate and tenure in months and click calculate
• Calculator gives three results - EMI, Interest payable and total payable which are self-explanatory
• You can change the amounts and see the results
• You can arrive at the most comfortable EMI you can afford

## What are the documents needed ?

We need copies of standard documents that offer proof of:

• Identity
• Income