Know more about Used Car Loans
8th May 2020 1:00
The interest rates for a used car loan vary from lender to lender and depend on multiple factors like your eligibility, income, the used car, etc. At Tata Capita, we offer the lowest used car loan interest rates in the industry, starting at just 15%. Our flexible options allow you to determine the best rates that fit your requirements.
Besides offering the best rates, we assure you of zero hidden costs. Whether it's processing fees, foreclosure charges, or delayed EMI Payments, we ensure you receive transparent and detailed information about everything in advance. With Tata Capital, you not only get affordable second-hand car loan interest rates but also customized plans to meet your unique demands.
Several factors come into play when determining the used car loan interest rates. These include the cost of funds, customer credentials, geography, asset, tenor, and discounts offered in the market. Your personal details like your credit profile, monthly income, and repayment capacity also influence the interest rates.
|Type of Fee||Application Charges|
|Processing Fee||1.75% of the Second-hand car loan amount.|
|LTV||With Tata Capital, you can avail of a second-hand car loan for up to 95% of the value of the used car. We even finance 100% value of the used car for select models.|
|Penal Interest / Additional Interest||3% on Overdue Amount per month + GST.|
At Tata Capital, we understand that the requirement of each customer is unique. This is why our experts ensure you get a transparent and suitable deal at low-interest rates. We offer the most competitive interest rates in the industry, starting at just 15%.
|Type of Fee||Applicable Charges|
|Bounce Charges||₹ 600 for every Cheque/ Payment Instrument/ ECS Dishonour + GST|
|Mandate Rejection Service Charge||
₹ 450 + GST
Charges will be applicable on your EMI Due date if the account does not have an Active mandate after the exhaustion of the given post-dated cheques. We will apply this charge every month until there is an Active Mandate linked to the account.
|Statement of Accounts||
|Loan Cancellation Charge||₹ 6,500|
|Instrument swap charges||₹ 550 + GST|
|Duplicate Repayment Schedule||₹ 550 + GST|
|Duplicate NOC||₹ 550 + GST|
|Valuation Charges||₹ 750 + GST|
|NOC for Interstate Transfer||₹ 1000 + GST|
|Stamp Duty||As per State norms|
|Broken Period Interest||At Actuals|
|NACH / PDC Charges||₹ 500 + GST|
|Foreclosure Report||₹ 550|
|Additional Processing Fee/ Documentation charges||₹ 1500|
|NOC for conversion of private to commercial registration||₹ 5600 + GST|
|Charges for Repossession of Vehicle||₹ 22,000|
You can calculate the used car loan interest rate using a simple mathematical formula-
[ P x R x ( 1 + R ) ^ N ] / [ ( 1 + R ) ^ N - 1 ]
P stands for the Principal Amount
R stands for Rate of Interest, and
N stands for the Tenure of the Loan in months.
You can add the desired values in this formula to calculate used car interest rates manually. But this process can be time-consuming and complicated. For instant and accurate results, you can use a used car finance rate calculator.
While calculating interest rates, lenders consider multiple fixed and variable factors.
Some of the key factors that influence the used car loan interest rates are:
Avail of a used car loan from Tata Capital to enjoy affordable second-hand car loan interest, starting at just 15%.
You don't need hefty paperwork to be eligible for a used car loan. With Tata Capital, both salaried and self-employed individuals can easily meet used car loan eligibility by maintaining a good CIBIL score of 750 or above. This will also reduce your second-hand car loan interest. But other criteria will vary slightly.
For example, salaried individuals must be between 21 and 60 years of age and have a monthly income of at least Rs. 20,000, and have work stability for a minimum of 1 year.
Self-employed individuals must be between 21 and 65 years of age, have an annual business income of at least Rs. 2 lakhs, and have a stable business for a minimum of 3 years.
An EMI calculator makes it very easy to calculate your potential EMIs before submitting your loan application. To use an online used car loan EMI calculator, all you need to do is enter the Principal loan amount, the applicable pre-owned car interest rate, and the desired loan tenure. That's it. The calculator will automatically calculate the EMI value instantly.
The fees/charges stated above are subject to change at Tata Capital’s discretion from time to time.
Customers who have taken a loan before April 15th, 2019, need to refer to the loan agreement and schedule of charges for applicable interest rates.
For the definitions of the above charges, please refer to the Master Terms and Conditions sheet. We will provide soft copies of the documents mentioned in the table above, free of cost. For hard copies, please refer to the above table for the applicable fees and charges.
The old car finance interest rate is the interest you have to pay on the principal loan amount. It depends on multiple factors like the cost of funds, customer credentials, geography, asset, tenor, and discounts offered in the market. With Tata Capital, you get transparent and accurate pre-owned car interest rates, which are the lowest in the industry.
You can easily repay your loan through ECS, Direct debit, and post-dated cheques drawn on "Tata Capital Financial Services Limited".
No, your EMI remains the same for the life of the loan. However, we offer flexible solutions that are specifically designed to fit your unique second-hand car loan rates requirement.
At Tata Capital, you can get Used Car Loans with multiple repayment options. Our Flexi EMIs allow you to select the right plan that fits your needs and budget. Here are the options that we offer-
Select the Used Car Loan EMI Plan that suits your cash flow. Under Fixed EMI, the second-hand car loan rates of interest and principal component charged remain the same for the entire loan tenure.
The EMI amount remains the same for the loan period.
Ideal if you have a consistent income.
Our Structured EMI option allows you to select a repayment method that suits you best.
Customize the EMI as per your requirement
Ideal if you expect your income to increase at regular intervals
We take 24-36 hours to process your application, from the completion of documentation to sanctioning the loan.
Used car loan interest rates are the rate at which you'll have to pay interest on the principal loan amount. This means that your monthly EMIs will include the principal as well as the interest components.
Tata Capital offers the lowest second-hand car loan interest rates in the industry, starting at just 15%.
Besides the interest rates, you'll also have to pay other charges like the processing fee. Lenders charge this one-time fee at the time of loan application processing. The processing fee is non-refundable even if the lender rejects your loan application.
At Tata Capital, the Used Car Loan processing fee is charged at 1.75% of the loan amount.
Lenders charge the interest rate on the principal loan amount. This includes the registration fees for some loan offerings. However, insurance of the car is not a part of its purchasing value and will have to be paid separately.
Interest rates are one of the many charges that you need to pay for your used car loan. If you want to repay the entire loan amount in a single payment, you will have to pay the penalty known as the foreclosure charge.
Tata Capital charges foreclosure as follows:
Salaried individuals do not get any tax exemptions for a used car loan. However, Section 80 C of the Income Tax Act states that self-employed individuals who want to purchase a car for commercial purposes can get some relief from high used car loan interest rates. The interest you have to pay in a year is eligible for a tax deduction. Self-employed individuals can also file for tax benefits on the depreciation value of the car.
No, the used car loan processing fee is not refundable. Lenders use this money to take technical and legal action for the verification of your documents, your car’s age and make, etc. Therefore, even if they reject your loan application, you'll not receive a refund for the processing fee.
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