The country was confined to home for months in 2020 due to lockdowns necessitated by the pandemic, but normalcy has now started to return since social restrictions were relaxed. So, if your car buying plans were put on hold last year due to blockages, now you can go ahead and achieve your goal.
However, the economy has yet to recover from the setbacks of the pandemic, and many remain uncertain about their financial future. In such a situation, keeping as much money 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 buy a vehicle would be to buy a used car instead of a brand new one, especially if you could borrow them as well, which is offered by most of the lenders in the world. country.
If you are looking to buy a used car on loan, it is in your best interest to review current loan offers from all the banks and choose the one that best suits your needs. Check things like the interest rate offered, processing fees, prepayment charges, loan amount and maximum term, etc. Note that some lenders only offer such loans on used cars less than three years old and often the maximum. the authorized tenure period is 5 years (although a few lenders offer such loans for terms of up to 7 years), according to BankBazaar.
Also check if you are eligible for a pre-approved loan offer for faster disbursement or if you can take advantage of special offers if you are also managing a home loan with the lender of your choice.
So, if you are looking for a used car loan, here are the interest rates currently offered by 20 banks in the country. We have also provided indicative EMIs for used car loans of Rs 5 lakh for a term of 5 years for each of the banks. Note that we only took into account the lowest interest rates for Rs 5 lakh loans for EMI calculations and did not take into account any other charges like processing fees.
According to BankBazaar, the EMI amount applicable to you could be different depending on the terms and conditions set by the lender you choose.
Indicative interest rates and IME for used car loans Rs 5-Lakh with a term of 5 years
Disclaimer: The interest rates on used car loans for all public and private listed banks (ESBs) have been taken into account for the compilation of the data. Banks for which data is not available on their websites are not taken into account. Data collected from the respective banks’ websites on January 19, 2021. Banks are listed in ascending order based on the lowest interest rate. The lowest interest rate offered by banks on loans of up to Rs 5 lakh and a term of up to 5 years is shown in the table that was used for EMI calculations (processing fees and other are assumed to be zero for the EMI calculation). The interest rates mentioned in the table are indicative and may vary depending on the general conditions of the bank. Data compiled by BankBazaar.com