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PERSONAL LOAN INTEREST RATES STARTING AT 10.99%

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PERSONAL LOAN INTEREST RATES STARTING AT 13.50%

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WEDDING LOAN FUNDING UP TO RS. 35 LAKHS

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LOANS FOR MEDICAL NEEDS ON AN EMERGENCY BASIS

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HOME LOANS WITH INSTANT APPROVALS STARTING AT 8.95%

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Used Car Loan

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Used Car Loan Interest Rates And Charges

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

    What is the Interest Rate on a Used Car Loan?

    Our used car loan interest rates start at 15% and are competitive amongst the other players in the industry. However, depending on loan eligibility, income, your used car, and other criteria, we determine the best interest rates on your Used Car loan requirement.

    When you apply for a Used Car Loan with Tata Capital, you do not have to worry about any hidden charges. Whether it is related to processing fees, foreclosure charges, or delayed EMI Payments, all information is transparently-provided for the smooth processing of your Used Car.

    What are the Current Used Car Loan Interest Rates?

    The used car loan interest rates are dependent on various factors including cost of funds, customer credentials, geography, asset, tenor, and discounts offered in the market. Besides that, your credit profile, monthly income, and repayment capacity also play a pivotal role. 

    Tata Capital ensures that you get a transparent and good deal at the time of availing of low-interest-rate used car loans. Our second-hand car loan interest rates are competitive in the market, starting at just 15%.

     

    Processing Fee

    1.75% of the Second hand car loan amount

    LTV

    We offer second hand car loan amount equivalent up to 95% of the value of the used car. On select cars, we even finance 100% value of the used car.

    Penal Interest / Additional Interest

    3% on Overdue Amount per month + GST

    Miscellaneous Charges

    Bounce Charges

    ₹ 600 for every Cheque/ Payment Instrument/ ECS Dishonour

    Foreclosure Charges

    If loan is getting foreclosed within 6 months: (7% of the principal outstanding at the time of foreclosure + GST)

    If loan is getting foreclosed within 6 to 12 months: (6% of the principal outstanding at the time of foreclosure + GST)

    If loan is getting foreclosed after 12 months: (5% of the principal outstanding at the time of foreclosure + GST)

    Mandate Rejection Service Charge

    ₹ 450 + GST

    Charges will be applicable on your EMI Due date in case the account does not have an Active mandate after the exhaustion of the given post-dated cheques. This charge would be applied every month until there is an Active Mandate linked to the account.

    Statement of Accounts

    Soft Copy – Nil

    Branch walk in - ₹ 250 + GST

    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

    How is Your Used Car Loan Interest Rate Calculated?

    The mathematical formula for calculating used car loan EMI, which is equal to the principal loan amount + the used car loan interest, is:

    [P x R x (1+R)^N]/[(1+R)^N-1]

    where :

    P stands for the Principal Amount

    R stands for Rate of Interest

    N stands for the Tenure of the Loan in months.

    Factors Affecting Used Car Loan Interest Rates

    Some of the main factors that affect the used car loan interest rates are:

    • Debt-to-Income Ratio: Your debt-to-income ratio determines whether you can pay the EMIs on time. Your application will be rejected, or the interest rates will be high if your debt-to-income ratio is high.

    • Repayment Tenure: Lenders offer low-interest rates in case you opt for a longer tenure. However, you will end up paying more interest. Even though the interest rates are high for a shorter tenure, the overall amount that you pay for the car will be low. So, always check the EMI before opting for the repayment tenure.

    • Increase the down payment: Lenders offer low pre-owned car loan interest rates if you make high down payment. Moreover, your EMIs will also reduce since the principal amount is low. A high down payment also shows lenders that you are financially sound and can repay the loan.

    • Income: Individuals with a steady income and a stable occupation can get a used car loan with a low-interest rate. The company you work for is also considered when determining the interest rates on a used car loan.

    • Credit score: Individuals with a good credit score are provided loans with a lower interest rate. Your loan application will be rejected, or the interest rates will be high if the credit score is low.

    How Can I be Eligible to Avail a Used Car Loan?

     Whether you’re a salaried or a self-employed individual, you can meet used car loan eligibility by maintaining a good CIBIL score of 750 or above. However, other eligibility factors may be a little different. For instance – salaried individuals need to be between 21 and 60 years, have a minimum monthly income of Rs. 20,000 and have work stability for at least a year. On the other hand, self-employed individuals must be between 21 and 65 years of age, have an annual business income of Rs. 2 lakhs, and a stable business for a minimum of three years.  

    How to Use Used Car Loan EMI Calculator for Calculating EMI?

     To use an online used car loan EMI calculator, you simply need to enter three inputs – the Principal loan amount you wish to borrow, the applicable rate of interest, and the desired loan tenure. Once entered, the calculator will automatically show the EMI value within seconds.  

    Disclaimer

    • The fees/charges indicated 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 rates.

    • For the definitions of the above charges, please refer to the Master Terms and Conditions sheet.

    • Soft copies of documents mentioned in the table above will be provided free of cost. For hard copies, please refer to the above table for the applicable fees and charges.

    Detailed FAQs

    Imported vehicles are also funded on case-to-case basis. The lending rates are dependent on various factors including cost of funds, customer credentials, geography, asset, tenor and discounts offered in the market. Tata Capital ensures that you get a transparent and good deal at the time of availing the Used Car Loan.

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

    No, the EMI is fixed for the life of the loan. However, we offer flexible solutions to fit your requirement.

    At Tata Capital, we offer Used Car Loans with multiple repayment options. Our Flexi EMIs allow you to choose a plan that suits your need as per your cash flow.

    Fixed EMI

    You get to choose the Used Car Loan EMI Plan that suits your cash flow. Flexible EMI plans include. 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

    It takes us 24-36 hours from the completion of documentation to sanction a used car loan.

    Used car loan interest rate is the rate at which interest will be charged on the principal loan amount. Meaning, the borrower of a used car loan will be required to repay the principal amount + the applicable interest on the loan in the form of monthly EMIs.

    Tata Capital has some of the most competitive second hand car loan interest rates in the market, starting at just 15%.

      

     Besides used car loan interest rates, other charges such as the processing fee are also involved. It is a one-time fee charged by the lender at the time of loan application processing. Processing fee is non-refundable even if the loan application is rejected.

    At Tata Capital, the Used Car Loan processing fees is charged at 1.75% of the loan amount.

    Used car loan interest rates will be charged on the principal loan amount, which will include the registration fees for some loan offerings. However, insurance of the vehicle does not form a part of the value and will have to be paid up-front.

    Used car loan interest rates are one of the many charges involved in the repayme