In India, pre-owned car loans have emerged as a popular financing option for buyers seeking affordable and reliable vehicles. These loans provide financial assistance for purchasing used cars, offering flexible terms and competitive interest rates. With a rising demand for pre-owned cars, such loans have gained significant traction in the Indian market.
Here are the best financial institutions for pre-owned car loans in India.
HDFC Bank
HDFC Bank offers comprehensive services beyond credit, providing customers with end-to-end advisory and personalized car selection assistance. Their Car Bazaar platform enables users to compare and find good cars while enjoying preferential pricing. For used cars and multi-utility vehicles, loans up to Rs. 2.5 crore are available. Flexible repayment tenures range from 12 to 84 months. Eligibility criteria vary based on employment type.
Depending on the segment and age of the vehicle, interest rates range from 9.25% to 16%. Foreclosure is not allowed within six months of the loan availing.
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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 offers a wide collection of cars, ranging from hatchbacks and SUVs to premium sedans, for which they provide used car loans. When it comes to the loan amount, they are quite flexible. You can get loans up to 95% of the car's value; in some cases, even 100% financing is approved.
Tata Capital aims to simplify the finance process for its customers. They offer flexible EMI options, including fixed EMI and structured EMI. This provides borrowers with greater flexibility in managing their repayments.
SBI
SBI offers a pre-owned car loan scheme that allows individuals to finance their purchase of used vehicles. Under this scheme, customers can avail of a minimum loan amount of Rs. 3 Lakhs and a maximum loan amount of Rs. 100 Lakhs. The loan amount is determined based on the cost of the vehicle as per the invoice.
To be eligible for the pre-owned car loan, salaried employees need to have a net annual income of Rs. 2.5 Lakhs or above. Self-employed individuals, professionals, and others must have a net annual income of Rs. 3 Lakhs.
Conclusion
The availability of pre-owned car loans in India has revolutionized the way people approach buying vehicles. According to Abhay Bhutada, Poonawalla Fincorp, Increased financing choices, online used-car platforms, and borrower-friendly policies from lenders have driven recent growth in used car sales. These loans have made owning a car more accessible, particularly for those who cannot afford to purchase a brand-new vehicle.
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