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Planning to take pre-owned car loan? 7 points that you should keep in mind

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

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used car loans

Sanjay Kumar Singh  |  New Delhi 



Planning to take pre-owned car loan? 7 points that you should keep in mind

Since interest rates on these are high, borrowers can even explore options like personal or top-up home loan
  • Interest rates on vary widely—from 8.8 per cent to 16.65 per cent
  • On a Rs 5 lakh loan taken for five years at the lowest rate (8.8 per cent) , the EMI would be Rs 10,331 and the total interest payable over the loan tenure would be Rs 1,19,843
  • On a similar loan taken at the highest rate of 16.65 per cent, the EMI would be Rs 12,332 and the total interest payable would be double at Rs 2,39,943
  • Do compare interest rates using online web sites before deciding whom to apply to
  • Loan tenures can vary from three-seven years. Remember that a longer tenure lowers the EMI but raises the total interest cost on the loan
  • Some banks have steep maximum limits on processing fee going up to Rs 11,800 which you should watch out for
  • Since are expensive, buyers can even explore the option of taking a personal loan (if it is cheaper) or even a top-up on an existing home loan. You could get the entire amount you need via these types of loans

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First Published: Fri, August 23 2019. 13:30 IST

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