Used-car loan: A longer tenure will mean lower EMI but higher interest cost

Here's how the used car loans offered by various banks stack up

Bindisha Sarang
Last Updated at March 23, 2020 01:49 IST

Salaried individuals and self-employed professionals can apply for used car loans.
Some lenders offer flexi EMI car loans that allow you to repay your loan according to convenience.
The rate of interest on this loan varies from 8.55-16.75 per cent.
You can get a loan tenure of up to five years, or in some cases, even seven years.
Longer the tenure, more affordable the EMI, but that also means higher total cost of the loan.
Most banks don't charge a part-prepayment penalty. Some charge up to 5 per cent of the outstanding loan amount.
The loan amount goes up to 90-100 per cent of the car’s value.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

MONTHLY

₹ 249

Select

ANNUAL

₹ 1799

Select

Best Offer

SMART ANNUAL

₹ 1499

₹ 1799

Opt for auto renewal and save Rs 300

Select

What you get on Business Standard Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Pick your 5 favourite companies, get a daily email with all news updates on them.
26 years of website archives.
Preferential invites to Business Standard events.