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

Since interest rates on these loans are high, borrowers can even explore options like personal or top-up home loan

• Interest rates on used car loans 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 used car loans 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