{"id":5916,"date":"2023-08-28T15:18:10","date_gmt":"2023-08-28T15:18:10","guid":{"rendered":"\/blog\/?p=5916"},"modified":"2025-01-16T14:23:22","modified_gmt":"2025-01-16T08:53:22","slug":"the-eligibility-criteria-for-new-car-loans-v-s-used-car-loans","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-vehicle\/the-eligibility-criteria-for-new-car-loans-v-s-used-car-loans\/","title":{"rendered":"The Eligibility Criteria for New-Car Loans v\/s Used-Car Loans"},"content":{"rendered":"\n

Mr Shetty wanted to buy a vehicle for\nhis son. But he was not sure whether to get a brand new car or a pre-used one. Keeping\nin mind that his son was an inexperienced driver, he decided to take a loan to\nbuy a used car. But Mr Shetty was confused about what kind of a loan to take. The\noptions included a regular car loan, a used-car loan, and a personal loan. So, he\nvisited the Tata Capital Online car store to get the answers to all his\nqueries. <\/p>\n\n\n\n

Know More<\/a><\/div>\n\n\n\n

Financing\na car: The different available loans<\/strong><\/p>\n\n\n\n

If you are buying a new car, you can\nget attractive car loans from many lenders. But when buying a used car, you\nhave to opt for a used-car loan or a personal loan. A used-car loan is a\npopular financing option for used cars. Take a look at the table to understand\nwhat differentiates a used-car loan from the new-car\nloan.<\/p>\n\n\n\n

\n  \n <\/td>\n NEW-CAR LOAN<\/strong>\n <\/td>\n USED-CAR\n LOAN<\/strong>\n <\/td><\/tr>
Available for<\/strong> <\/td> Brand new cars   <\/td>  Pre-owned cars <\/td><\/tr>
Loan amount<\/strong> <\/td> Up to 100% of the value of the car <\/td> Up to 90% of the value of the car <\/td><\/tr>
Interest rate<\/strong> <\/td> 8%\u20139% <\/td> 12%\u201317% <\/td><\/tr>
Tenure <\/strong> <\/td> Up to seven years <\/td> Up to five years <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Eligibility\ncriteria for new-car loan and used-car loan<\/strong><\/p>\n\n\n\n

Your eligibility for a used car loan\ncan depend on whether you are a salaried employee or a self-employed professional.\nFor new-car loans for salaried individuals, you must have an annual income of\nat least Rs. 2.5 lakhs. For those who are self-employed, this may drop to Rs. 2\nlakhs. The loan tenure, in this case, could\nbe anywhere between 12 to 60 months. But this could also go up to 84 months for\nhigh-end cars.<\/p>\n\n\n\n

In the case\nof used cars, a salaried individual must earn at least Rs. 3 lakhs per year. He\nmust have work experience of at least two years. Of this, one year must be with\nthe current employer. What if you are self-employed or own a business? Then\nyour annual income should be Rs. 2 lakh. You would also have to be doing\nbusiness for at least three years. <\/p>\n\n\n\n

Why\nopt for a used-car loan? <\/strong><\/p>\n\n\n\n

More and more people are considering a used-car loan<\/a> when buying a pre-owned vehicle. The main reasons for this are:<\/p>\n\n\n\n

    \n
  1. Credit score<\/strong>: The biggest\nadvantage here is the credit score. Many people who buy used cars do so because\nof financial constraints and low credit scores. It is difficult to get personal\nloans with a low credit score. But you could still get a used-car loan if you\nare fairly above the average level. <\/li>\n\n\n\n
  2. Economica<\/strong>l: As the used car\u2019s\nvalue is lower, the used-car loan principal is much lower than a new car loan\nprincipal. The loan is available for a shorter duration too. This makes it\neasier for you to manage the loan and your other expenses.  <\/li>\n\n\n\n
  3. Wide availability<\/strong>: These days,\nmany used-car vendors offer loans. The Tata Capital Online Car Store is one\nsuch platform. <\/li>\n<\/ol>\n\n\n\n

    Getting\na used-car loan<\/strong><\/p>\n\n\n\n

    In today\u2019s times, it is easy to get a car loan. You can complete the entire process online making it convenient and quick. You can also choose a flexible repayment option. This may reduce the burden of Equated Monthly Instalments (EMIs). After all, the loan should not become a liability for you. <\/p>\n\n\n\n

    Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

    Mr Shetty wanted to buy a vehicle for his son. But he was not sure whether to get a brand new car or a pre-used one. <\/p>\n

    Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":5921,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-5916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-vehicle"],"yoast_head":"\nThe Eligibility Criteria for New-Car Loans v\/s Used-Car Loans - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Understand the eligibility criteria and key differences between new-car loans and used-car loans, including loan amounts, interest rates, and tenure.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Eligibility Criteria for New-Car Loans v\/s Used-Car Loans - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Understand the eligibility criteria and key differences between new-car loans and used-car loans, including loan amounts, interest rates, and tenure.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/the-eligibility-criteria-for-new-car-loans-v-s-used-car-loans\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T15:18:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-16T08:53:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/eligibility-criteria-for-new-car-loans-vs-used-car-loans.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/the-eligibility-criteria-for-new-car-loans-v-s-used-car-loans\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-vehicle\/the-eligibility-criteria-for-new-car-loans-v-s-used-car-loans\/\",\"name\":\"The Eligibility Criteria for New-Car Loans v\/s Used-Car Loans - 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