Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > The Basic Guide to New and Used Car Loans

Loan for Vehicle

The Basic Guide to New and Used Car Loans

The Basic Guide to New and Used Car Loans

In this face-paced world, owning a car has become a necessity. Using public transportation becomes quite stressful and time-consuming. A car is your personal mode of travel and offers a high degree of convenience and safety.

Know More About Used Car Loan

Purchasing a car, whether new or pre-owned, is a huge decision. There are numerous factors to be taken into consideration such as brand, model, and most importantly – finance. Spending all of your savings to buy a car is not a feasible option. You may opt for a car loan, and finance your car purchase easily.

About car loans

There are numerous financial institutions offering loans to those seeking to buy a car. The borrowed amount has to be repaid over a period of time through regular installments known as Equated Monthly Installments (EMIs). Once the principal borrowed amount and the interest have been paid, the contract is then terminated.

Features of car loan

While borrowing finance, be it new or used car loans, it is important to consider the following features.

  1. Interest rate
    The rate of interest is the most important aspect of a loan. It is the amount paid to the lender for servicing the loan. Higher the interest rate, greater will be the amount to be repaid. Therefore, choose a lender offering the most competitive interest rate as it will help you save a significant amount of money.
  2. Loan tenure
    This is the period during which the loan has to be repaid. Higher loan tenure indicates that you may repay your loan over a longer period of time. Subsequently, the amount you pay towards your EMIS for your new or used car loan will be lesser.
  3. Repayment plans
    In order to provide customers with the best terms, some lenders offer customized repayment plans. You, therefore, have a choice to increase or decrease the EMI amount based on your cash inflow and outflow. This flexible structure allows you to manage your finances easily.
  4. Fees and charges
    Besides the rate of interest, there is a range of additional fees that you need to consider. These include processing fee, documentation charges, pre-payment penalty, foreclosure fees, and part payment charges, besides others.

Eligibility and documentation

In order to avail of car loans, it is necessary to be eligible for it. While the eligibility criteria may vary from lender to lender, the basic criterion includes a minimum age and salary as specified by the lender. In order to support your application, you may submit the necessary documents required. Upon verification of these documents, the application is sent for processing, and the amount is then disbursed to your account.

The automobile market in India is growing at a rapid pace. Acknowledging this demand for vehicles, lenders are providing finance at attractive terms. You may take advantage of such loans and buy your dream car without any hassles.

Apply Now

Your Smooth Ride Awaits: Take a Quick and Easy Vehicle Loans!

Apply now
Popular Searches
safest car in india car down payment pdi full form tax benefit on car loan pdi checklist best cng mileage car sedan cars under 10 lakhs what is adas top rated electric cars best sedan cars in india
More About Loans
bike emi calculator two wheeler loan bike loan interest rate second hand car loan second hand car loan interest rates vehicle loan 2nd hand car loan emi calculator loan against car new car loan bike finance documents 2 wheeler on emi apply for used car loan
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools