In India, there are several leading lenders that specialize in providing loans for used cars. These lenders offer competitive rates, flexible terms, and streamlined processes, making it easier for individuals to finance their pre-owned vehicles. Whether you prefer established banks, non-banking financial institutions, or specialized car financing companies, you can choose from a range of options when seeking a used car loan in India. These lenders prioritize customer needs and aim to simplify the loan application and approval process, ensuring a smooth and convenient experience for borrowers.
IDFC First Bank
IDFC First Bank offers used car loans across dealerships in 35 cities in India, allowing you to finance a vehicle without bearing the entire cost. To be eligible, you must be a salaried or self-employed professional over 21 with at least one year of work or business experience.
The loan application process involves applying online, visiting a dealership, submitting the required documents, and finally driving your chosen car. The necessary documents include ID proof, address proof, and the last six months’ bank statement. The loan tenure can range from 11 to 84 months.
Axis Bank
Axis Bank offers a pan-India tie-up with car dealers, complete transfer support, and a low minimum loan amount starting from Rs. 1 Lakh. Eligibility criteria for Axis Bank include a minimum net annual salary of Rs. 2.4 Lakhs p.a for certain models and Rs. 3 Lakhs p.a for specific models.
You can use the car loan eligibility calculator provided by Axis Bank to verify your eligibility before applying for your used car loan.
Poonawalla Fincorp
Buying a used car is much more affordable when you opt for Poonawalla Fincorp’s Pre-Owned Car Loan. Individuals can avail of second-hand car loans up to ₹75 Lakh, with attractive interest rates. They offer a competitive interest rate starting at just 11%* p.a.
These loans offer up to 100% funding on a diverse selection of cars. Borrowers can enjoy a flexible tenure of up to 72 months, free from any hidden charges. Additionally, the loan process is quick and hassle-free, requiring minimal documentation.
Tata Capital
Tata Capital provides a diverse range of cars, including hatchbacks, SUVs, and premium sedans, and offers used car loans for their purchase. They offer considerable flexibility in terms of the loan amount, allowing borrowers to avail up to 95% of the car's value and, in some cases, even 100% financing.
To simplify the financing process, Tata Capital offers flexible EMI options, such as structured EMI and, fixed EMI, across their entire lineup of cars, SUVs, MUVs, and crossover vehicles. This ensures that borrowers have greater flexibility in managing their loan repayments.
Also Read: Top 4 Car Leasing Companies In India
Bottom Line
The availability of pre-owned car loans in India has revolutionized the approach to purchasing vehicles. According to Abhay Bhutada, Poonawalla Fincorp, the recent growth in used car sales can be attributed to increased financing choices, the presence of online platforms for used cars, and borrower-friendly policies implemented by lenders. These loans have made car ownership more accessible, particularly for those who cannot afford to buy a brand-new vehicle.
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