Used Car Loan Interest Rate

Car Loans for a used vehicle can offer you the financial flexibility to purchase your ideal car without the hefty price tag of a new one. Understanding the Interest Rate of a Used Car Loan is crucial to making an informed decision. With options aplenty, getting familiar with these rates and related charges can lead to substantial savings.

Interest Rates and Charges

For loans with tenure up to 3 years or 36 months

If you are considering a loan tenure of up to 36 months, the Used Car interest rates typically vary between 13.55% and 15.80% p.a. No reset applies to these rates, and the processing fee is either ₹6,000 or 1% of the loan amount—whichever is higher for Sale, Purchase, and Refinance Loans.

For loans with tenure of more than 3 years or 36 months

For those looking at stretching their loan tenure beyond 36 months, the Used Car Loan interest rates remain the same, fluctuating between 13.55% and 15.80% p.a. The processing fee is either ₹6,000 or 1% of the loan amount—whichever is higher for Sale, Purchase, or Refinance Loans.

The documentation changes for both of the above options is ₹700.

Used Car loan charges

Here is a summary of the charges associated with a Used Car Loan:

Here's what you have to pay:

Factors affecting Used Car Loan interest rates

• CIBIL score: A robust CIBIL score, typically above 750, can position you as a low-risk borrower, potentially unlocking better Used Car Loan rate offers.
• Debt-to-income ratio: Keeping this ratio low indicates that you're not over-leveraged, making you a more attractive candidate for lower second-hand car interest rates.
• Income: Consistent and high income not only solidifies your ability to repay, but it could also give you the leverage to negotiate Used Car Auto Loan interest rates.
• Occupation: Lenders often consider government and public sector employees as less risky, which could translate to more favourable Used Auto interest rates.
• Relationship with the lender: Long-term customers who have maintained good financial dealings can often enjoy reduced Used Car Auto Loan rates due to established trust.

Know how to apply for a Used Car Loan

Securing second hand car loan rates involves a few key steps:

• Gather all required documentation, including proof of income, identity, and address.
• Apply for the loan either through the Axis Bank's online portal or by visiting a branch in person.
• Fill out the application form with accurate details to expedite the approval process.
• Submit your application and wait for the lender to review it.
• Once approved, review the loan agreement carefully before accepting the terms.
• Upon acceptance, the loan amount will be disbursed to you so you can purchase your vehicle.