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  • Overview
  • Eligibility & Documentation
  • Rates & Charges
  • Calculators
  • EMI Options
  • FAQs
  • Blog
    • 1

    What is an EMI?

     EMI is a short form for Equal Monthly Instalments. Used car loan EMI is the amount that you need to pay every month towards the repayment of your used car loan at the applicable interest rate over a fixed tenure. Purchasing a used car on EMI distributes the loan principal + interest amount over a period that you are comfortable with for convenient loan repayment.  

    The 3 How’s of deciding the right EMI

     Before purchasing a used car on EMI, consider the following questions carefully.

    • How soon do you want to pay off your used car loan?
    • How much can you afford to pay in a month?
    • How much of an interest rate are you comfortable with?

    Proceed with your purchase of a used car with EMI option only after answering these 3 hows as it will help you customise your loan wisely for a smooth repayment experience.



    How to Choose a Right EMI Option?

     When you purchase a used car with EMI option, you need to answer the following questions to arrive at the right EMI value –

    • How soon do you want to pay off your used car loan?

    Are you alright with dragging your used car loan for years or do you want to close it as soon as possible? If you want to close your loan sooner and have the means to do so, then pay a higher downpayment and choose a short tenure.

    • How much can you afford to pay in a month?

    If you do choose a short tenure, you will have to pay higher EMI amount every month. If you have a high income and a stable source, you can buy a used car on EMI by paying a higher EMI amount. To understand your affordability, take into account your EMI amount and other monthly obligations and weigh them against your monthly income.How much of an interest are you comfortable with?

    Do you wish to pay low interest in your used car loan? Then you need to opt for a short tenure because a longer tenure means higher interest outgo. However, a shorter tenure would mean higher EMIs every month. Based on your current income and future expectations (of a raise), you can answer this question.

    Which EMI Option is Suitable for You?

     We understand that choosing the right EMI option can seem overwhelming and even challenging. To have a budget-friendly and comfortable EMI repayment experience, you can choose from our pre-designed EMI plans.

    Fixed EMI plan

    You can pay off your principal amount and used car loan interest on the loan in a consistent manner over the fixed tenure. The EMI amount remains unchanged under the standard plan. This plan is ideal for those with a consistent income that is unlikely to change in the future.

    Structured EMI plan

    Enjoy the flexibility to customise your EMIs. Under the step-up flexi EMI plan, you can pay lower EMIs initially and gradually pay more with an increase in income. This plan is ideal if you expect your income to rise in the near future.  

    Fixed EMI

    You get to choose the Used Car Loan EMI Plan that suits your cash flow. Under Fixed EMI, the interest and principal component charged to you is fixed during the entire loan tenure.

    • EMI amount remains the same for the entire used car loan period
    Ideal if
    You have a consistent income

    Structured EMI

    Our Structured EMI option allows you to select a repayment method that suits you best.

    • Customised EMI options as per your requirement
    Ideal if
    You expect your income to increase at regular intervals

    How much EMI do you need to pay?

     The monthly amount that you need to pay on the purchase of a used car with EMI option depends upon the loan principal you borrow, the interest applicable on the loan, and the period for which you borrow the loan.

    Use an online used car loan EMI calculator to arrive at a suitable EMI value.  

    What are the Modes of Paying Used Car Loan EMI?

     When you buy a used car with EMI option, you can make the EMI payments in the following two modes –

    • Online Payment – Make your EMI payments online, through our website, from your desktop or mobile, anytime and from anywhere.

    • Drop a Cheque – When you purchase a used car on EMI, you can even select a nearby branch and drop a cheque at your convenience. 

    How can you repay the Used Car Loan?

    The loan can be repaid through ECS, Direct debit and post-dated cheques drawn on "Tata Capital Financial Services Limited".

    You can prepay the loan, if you are closing it fully. However, we do levy a prepayment charge. For more details, view our service charges.

    Detailed FAQs

     The most common method is to purchase a used car on EMI. Meaning, to repay a used car loan via the monthly instalment method wherein Equal Monthly Instalments or EMIs can be made within the specified tenure. The loan EMI will be equal to the principal loan amount plus the applicable interest amount on the loan.

    To find out the EMI amount in advance, you can take help of fast and easy online tools such as the used car loan EMI calculator.  

    Multiple used car loan EMI options are available for a smooth repayment experience. You can choose from –

    • Fixed EMI plan – wherein the monthly EMI value remains unchanged. Suitable if your monthly income is consistent.

    • Flexi EMI plan – wherein the monthly EMIs can be customised. Suitable if your monthly income is likely to increase in the future.

    Based on your used car loan eligibility and capacity, you can find out your EMI value by using an online used car loan EMI calculator and then purchase your pre-owned car with the EMI option that best suits your needs.  

    Yes, you can prepay your used car loan, provided you prepay it fully. Moreover, prepayment of used car loan will accompany certain charges known as the prepayment charges. Before you purchase your used car on loan, make sure to check with your lender about the used car loan charges.  

    Not once your loan has been sanctioned. After loan approval, the EMI becomes fixed for the loan tenure. However, you can use an online used car loan EMI calculator and arrive at a comfortable EMI by choosing a longer tenure. Also, some lenders offer flexible EMI plans to suit your budgetary needs. So, before you purchase a used car on EMI, make sure to check the EMI plans your lender offers.  

     Before you buy second hand car on EMI, make sure that you’re conversant with different ways of EMI management, as mentioned below –

    • Calculate your monthly EMIs in advance using an online second hand car loan EMI calculator.

    • Use smartphone applications to notify you of the EMI payment date.

    • Shelve out the monthly EMI on the very first day of every month.

    • Ask your bank to automatically transfer the said EMI amount every month on your behalf.   

    When you purchase used car with EMI option, two repayment plans are available for you to choose from based on your requirements. These are as follows -

    • Fixed EMI plan – Under the Fixed EMI plan, the principal amount and the interest remain fixed throughout the loan tenure. As a result, even the EMI remains unchanged. This plan is the most suitable for those whose monthly income is consistent and unlikely to change in the future.

    • Flexi EMI plan – When you choose the Flexi EMI plan to pay your used car loan EMI, you can customise your monthly EMIs – generally, the EMI amount is low initially and gradually increases with the tenure. This plan is best suited for those who expect their income to rise in the future. 

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