Used Car Loan EMI: Loan is available on used cars, which bank will have to pay the lowest EMI

Buying a car is always very exciting for every man and his family. However, financially it is a difficult task that requires proper research and planning. When you decide to buy a car, you not only look for a top-end model with maximum features but also want a car that fits your budget. Apart from this, some may even get affordable or mid-range new cars, bypassing their budget.

Demand for used cars increased during the Kovid period
The right solution in such a case may be to go for a used car that meets your aspiration without stressing your finances. Used car sales in India have increased, especially after the current COVID-19 pandemic, as many people are preferring their own vehicle over public transport.

Different rules for different banks
Apart from this, many lenders are also offering good deals and interest rates. Thereby, buying a used car has become convenient and simple. That said, you should always compare different loan offers to find the best deal for you. Remember that each lender has different eligibility criteria for a used car loan. So, before applying for a used car loan, check if you meet the lenders’ requirements.

can get loan
For example, some lenders offer loans only for cars that are less than three years old while others may give loans for cars that are less than 5 years old. Your car loan will be approved up to 75 to 85 percent of the total value, the rest of the amount you will have to make as a down payment.

may have to pay so much interest
The interest rate affects your EMI. For a used car loan, the interest rates range from 11% to 16% and the repayment tenure is up to 7 years. Apart from this, you have to pay some amount as processing fee. Generally, interest rates on a used car loan are higher than that of a new car loan, so you may want to go for a shorter tenure. Therefore, before taking a used car loan, make sure you are aware of the important factors including eligibility, loan amount, interest rate, processing fee, etc.

EMI is decided by your loan and interest rate
If you are planning to take a used car loan, the table below lists the current interest rates on used car loans by 20 leading banks in the country. The table also gives the estimated EMI for a used car loan of Rs 5 lakh taken for a tenure of 3 years. Note that we have considered only the lowest rate for each bank loan up to Rs 5 lakh, EMI excluding processing fees and other charges. The interest rate applicable to you may be higher depending on your loan.

EMI may have to be paid on a used car loan of 5 lakhs

banks’ name Rate of interest (in percent) EMI (in Rs.)
Canara Bank 7.30 15,507
bank of india 7.35 15,519
PNB 8.30 15,737
Indian Overseas Bank 8.55 15,795
Central Bank Of India 8.60 15,807
UCO Bank 8.80 15,853
SB I 9.20 15,946
HDFC bank 13.75 17,028
federal bank 13.80 17,040
Axis Bank 14.40 17,186

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