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Loan Up to ₹ 50 Lakhs* | Tenure Up to 72 months | Interest Rates Starting at 10.75%*
The used car loan interest rate depends on multiple factors, including the cost of funds, customer profile, location, type of vehicle, loan tenure, and prevailing market discounts. Lenders also assess your credit score, monthly income, and repayment capacity to determine the applicable second hand car loan interest rate, ensuring it aligns with your financial stability and risk profile.
| Type of Fee | Application Charges |
|---|---|
| Processing Fee |
|
| LTV | We offer loans for a wide range of second-hand cars, so you don't have to compromise on your dream vehicle. You can avail a loan up to 95% for purchase of used car and upto 200% on your exisiting car. What's more? You get to enjoy flexible EMI repayment options and quick disbursal of funds which makes Tata Capital the best choice for taking car loans for used cars. |
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 10.75%.
3% per month on overdue amount
These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay ₹ 600 per instrument per instance.
Charges will be levied if EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. Tata Capital charges a nominal amount of ₹ 450 + GST
| Type of Fee | Applicable Charges |
|---|---|
| Prepayment Penalty/ Foreclosure charges |
|
| Statement of Accounts |
|
| Loan Cancellation Charge | ₹ 6500/- |
| Instrument swap charges | ₹ 550 each time PDC is swapped |
| Duplicate Repayment Schedule | ₹ 550/- |
| Duplicate NOC | ₹ 550/- |
| Valuation Charges | ₹ 750/-(Per valuation) |
| NOC for Interstate Transfer | ₹ 1000/- |
| Stamp Duty | As per actuals |
| Broken Period Interest | At Actuals |
| NACH / PDC Charges | ₹ 500/- |
| Foreclosure Report | ₹ 550/- |
| Documentation charges | ₹ 1,500/- |
| NOC for conversion of private to commercial registration | ₹ 5600/- |
| Charges for Repossession of Vehicle | ₹ 22000 as applicable |
| PDD charges | ₹ 450/- |
Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.
Not only are used car loan rates & charges competitive, but they also offer a variety of additional benefits. These benefits make availing of a pre-owned car loan extremely attractive for a number of reasons.
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 10.75%.
Disclaimer:
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.
You can easily repay your loan through ECS, Direct debit, and post-dated cheques drawn on "Tata Capital 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.
We take 24-36 hours to process your application, from the completion of documentation to sanctioning the loan.
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 loan amount or 4000 whichever is higher
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.
Having a guarantor while applying for a pre-owned car loan with Tata Capital is not a mandate. However, if your income fails to meet the eligibility criteria, we suggest a guarantor or a co-applicant.
For instance, you must fulfil the income criteria to get a used auto loan. This is Rs. 20,000 monthly or more for salaried individuals and a minimum of Rs. 2 lakhs per annum for self-employed individuals.
So, if your income falls in this range, you need not provide a guarantor. On the other hand, if you fail to fulfil this income eligibility criteria, a guarantor can help you secure your second-hand car loan. Note that the guarantor can be your spouse, a blood relative or a close family member to help you improve your loan eligibility.
Furthermore, a guarantor with a high CIBIL score (750 or above) and a healthy loan repayment pattern can significantly increase your chance of securing a used car loan with Tata Capital.
No, with Tata Capital, you don't need to provide additional collateral or security to avail of the pre-owned car loan. However, the car for which the loan is taken is the collateral. This car is hypothecated to Tata Capital documentation, making it the only collateral required to avail of used car financing.
Along with being a secured loan, the Tata Capital used car loan also offers the following benefits-
#1. The second-hand car loan rates & charges are competitive, starting at 12.99% onwards.
#2. The loan tenure is flexible between 12-72 months.
#3. We offer a loan covering up to 95% of your car's value.
#4. We also require simple documentation and fast processing and quick disbursement of the loan amount. You can expect the amount disbursed directly within 24 to 36 hours of document submission to your bank account.
#5. We offer a high principal loan amount that can go up to Rs. 50 lakhs.
Various factors determine the used car loan rates & charges at Tata Capital. These factors include-
#1. Debt-to-Income Ratio - This ratio is important while determining your used auto loan rates & charges as it indicates if you can pay the loan EMIs on time. A high debt-to-income ratio can lead to high-interest rates or perhaps even the rejection of your application.
#2. Increase the down payment for lower used car interest rates - Making a higher down payment reduces your second-hand car loan interest rates. This is because a high down payment highlights that you are financially responsible, given you don’t need the loan to finance a larger portion of your purchase. Often this can mean better interest rates.
#3. Income - The second-hand car loan rates & charges can get lower if you have stable employment with a steady income.
#4. Credit score - An excellent credit score (750 or above) can decrease your pre-owned car loan rates & charges at Tata Capital. After all, a higher credit score represents a good history of repayments signalling you are less likely to default on the loan. This can get you better interest rates.
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 ]
where :
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.
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.
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