If you are looking for a used car loan, here are the interest rates currently being offered by 20 banks in the country.
The country was confined to its home for months in 2020 due to the pandemic-necessitated lockdowns, but normalcy has now started returning ever since the social restrictions were eased. So, if your plans to buy a car were put on hold last year due to the lockdowns, you can now go ahead and fulfil your target.
However, the economy is yet to recover from the pandemic setbacks, and many continue to remain uncertain about their financial future. In such a situation, conserving as much cash as possible by cutting expenses could be a good strategy to fortify our finances against future uncertainties. Now, one of the most cost-effective ways to purchase a vehicle would be to buy a used car instead of a brand new one, especially if you could also get them on loan which are offered by most lenders in the country.
If you’re looking to buy a used car on loan, you’ll be well-advised to check the current loan offers of all the banks and choose the one that best meets your requirements. Check for things like the interest rate offered, processing fee, pre-payment charges, maximum loan amount and tenure, etc. Do note, some lenders offer such loans only on used cars that are less than three-years-old and often the maximum tenure permitted is 5 years (although a few lenders do offer such loans for tenures up to 7 years), according to BankBazaar.
Also, check whether you’re eligible for any pre-approved loan offer for faster disbursal or whether you can enjoy any special offers if you’re also servicing a home loan with your chosen lender.
So, if you’re looking for a used car loan, here are the interest rates currently being offered by 20 banks in the country. We have also provided the indicative EMIs for used car loans of Rs 5 lakh for a 5-year tenure for each of the banks. Do note, we have considered only the lowest interest rates for Rs 5 lakh loans for EMI calculations and have not factored in any other charges like the processing fee.
As per BankBazaar, the EMI amount applicable to you could be different depending upon the terms and conditions laid down by your chosen lender.
Interest Rates and Indicative EMIs for Rs 5-Lakh Used Car Loans with a 5-Year Tenure
Disclaimer: Interest rates on used car loans for all listed (BSE) public and private banks have been considered for data compilation. Banks for which data is not available on their websites are not considered. Data collected from respective bank’s websites on January 19, 2021. Banks are listed in ascending order on the basis of lowest interest rate. The lowest interest rate offered by the banks on loans of up to Rs 5 lakh and tenure up to 5 years is shown in the table which have been used for EMI calculations (processing and other charges are assumed to be zero for the EMI calculation). The interest rates mentioned in the table are indicative and they may vary depending on bank’s T&C. Data compiled by BankBazaar.com