There are a lot of people who like to buy a car nowadays to make the transportation easy for themselves. But there are some who can just dream of buying one but can’t buy due to their financial conditions. For them, the best option is to buy a well conditioned used car. That way they can get their desired car at a lot less price and even the reputed banks are now giving loans to buy a used car. Here we are going to give you the details on how to get a loan for a used car and that too in low interest rates.
How to Apply for Used Car Loan at Low Interest Rates in India
First, here is the list of the top banks which provide used car loans at a low interest rate. You can choose whichever suits you the most.
|BANK NAME||LOAN AMOUNT||INTEREST RATE||TENURE|
|HDFC BANK||80% of market value of vehicle||13%||5 years|
|STATE BANK OF INDIA||85% of market value of vehicle||12.60%||7 years|
|ICICI BANK||80% of market value of vehicle||15.50%||5 years|
|KOTAK BANK||90% of market value of vehicle||17%||5 years|
|UNION BANK OF INDIA||50% of market value of vehicle||12%||5 years|
There are eligibility criteria set by every bank which you need to follow if you want to get the loan. They are usually same for most of the banks.
- The minimum age for getting a used car loan is 18 years and the maximum is 75 years. Your age should not cross 75 years before tenure of the loan.
- The minimum monthly salary of the person applying for the used car loan must be Rs. 10,000.
- Your employment must be stable and you must be working for more than 3 years to the company where you are working at present.
- Your residential status must be stable too as if the bank finds that unstable, they will not pass the loan.
If all these points are followed, you gen get a used car loan. For that, you just have to visit a bank of your choice, fill a loan form and submit it attached with all the required documents. The bank will do the verifications of all the documents and address. If they find all correct, they will pass the loan.