Many banks in India offer loans for used cars or pre-owned cars. During the loan term, you can pay back the loan in equivalent monthly instalments (EMIs). However, one should be careful and check other details such as registration documents, car insurance, etc. The eligibility to avail this loan differs depending on the bank and type of vehicle.
Here is a look at the interest rates offered by
, and for user cars.
The eligibility range for SBI pre-owned vehicles is 16 to 67 years old. Keep in mind that the loan must be fully returned before the borrower turns 70. A loan can be obtained for as little as Rs. 3 lakhs or as much as Rs 100 lakhs.
Interest rates will range from 9.75% to 13.25%. Credit score-based rates will be applicable.
PNB used car loan interest rate
PNB finances old car/van/jeep/MUV/SUV, which are not older than three years and unencumbered (i.e., not financed by other Bank/Financial institutions on the date of the loan).
auto loans are linked to the repo linked lending rate (RLLR) (RLLR+BSP). Note that BSP is the risk premium added based on the customer risk.
For used car loans, the rates will be RLLR+BSP+1.00 for credit scores of 750 & above. Interest rates will be RLLR+BSP+ 0.30% for CIC Scores 700 and up, and RLLR+BSP+ 0.65% for credit scores below 650 to less than 700.
ICICI Bank auto loan interest rate
Pre-owned car loans from ICICI Bank have attractive interest rates and a repayment period of up to 7 years. For used car loan, interest rates are based on customer relationship, age and segment of car, product variant like purchase, top up, refinance, etc, as per the ICICI Bank website.
The interest rate on an ICICI used car loan ranges from 11% to 15.50% depending on the car segment.
According to the ICICI Bank website blog, here is a look at who can apply for a pre-owned car loan.
Both self-employed and salaried individuals can apply for a Pre-owned Car Loan. The loan is available only to resident Indians. Let’s go through some of the other Pre-owned Car Loan eligibility criteria: