Used Car Loan

1. What is a Used Car Loan?
Buying a second-hand car has multiple benefits. It is not only easy on the pocket but has a slower depreciation rate and offers tension-free drive 24x7. But what if your desired pre-owned car does not fit your budget? This is where used car loan financing comes in.

It is a smart and economical way to fund your purchase. With Tata Capital’s used car finance, you can finance anything from hatchbacks and SUVs to premium sedans. You can avail up to 95% of the car’s value with Tata Capital. Apply today to benefit from flexible EMI repayment options and quick disbursal.

 

2. How much time does it take to process a Used Car Loan?
The processing time for a used car loan at Tata Capital is designed to be quick and hassle-free. After you submit all the required documents, the loan disbursal typically takes between 24 to 36 hours. This quick turnaround ensures you can drive home your dream car without unnecessary delays, making the process smooth and efficient.

 

3. How can I repay the Used Car Loan?
You can repay your loan through ECS, Direct debit, and post-dated cheques drawn on "Tata Capital Limited".

 

4. What are the minimum and maximum loan amounts for a second hand car loan?
With Tata Capita, you can avail of a Loan starting from ₹ 1,00,000/- up to ₹ 50,00,000/- depending on your eligibility.

 

5. How does a used car loan work?
Apply for Loan: Submit an application to a lender.

Approval: Lender evaluates and approves your loan based on your credit and the car’s value.

Down Payment: Pay a portion of the car’s cost.

Disbursement: Lender pays the seller the remaining amount.

EMIs: Make monthly payments over the loan tenure.

Ownership Transfer: Update the car’s registration with the RTO.

Final Payment: Upon full repayment, receive a no-objection certificate (NOC) from the lender.

 

6. What is the maximum tenure available for a used car finance?
Loan tenure is the period within which you need to repay your loan, including the interest. Tata Capital's maximum tenure is 72 months or 6 years.  

 

7. Who can be the co-applicants of the second hand car loan?
A co-applicant is a person who applies for a loan along with the main borrower. They will be equally responsible for the loan repayment in case of any default by the primary borrower. If you want to improve your loan eligibility, you can have a co-applicant apply along with you.

The following are the acceptable co-applicants for a second-hand car loan –

Spouse

Family member

Blood relatives  

 

8. Do you need collateral for a loan to buy second-hand car?
No, you don't need any additional collateral or security for the loan. The car for which you take the loan is itself the collateral that is needed, hypothecated to Tata Capital documentation.  

 

9. How do I approach Tata Capital for a second-hand car loan?
You can apply for a used car loan financing with Tata Capital in the following ways –

Apply online through our website.

Email our customer support team.

Call us on our toll-free number – 1860 267 6060.

Take the help of our virtual assistant, TIA.

Visit a nearby branch and talk to our lending experts.

 

10. How does monthly income affect your eligibility for getting a loan?
To determine your used car loan eligibility, check your current and potential income. You will need to repay your loan in Equal Monthly Instalments or EMIs. Income plays a key role in determining how much money you can spend each month to pay your loan EMI. The higher your income, the higher will be your eligibility and vice-versa. A high income also makes you eligible to borrow a higher loan amount.  

 

11. What are the different types of Charges that can be levied in a pre-owned car loan?
Processing Fee    
Minimum 1.75% of loan amount or Rs 4000 whichever is higher (Term Loan)2% of Limit sanctioned (Overdraft)

LTV    
We offer loans for a wide range of second-hand cars, so you don't have to compromise on your dream vehicle. You can avail a loan up to 95% for purchase of used car and up to 200% on your existing car. What's more? You get to enjoy flexible EMI repayment options and quick disbursal of funds which makes Tata Capital the best choice for taking car loans for used cars.

 

12. How long will it take for me to receive my NOC after the loan closure?
NOC will be dispatched to your registered Address within 5 working days from the date your loan closure. 

In case you need us to send the NOC on any other address or at your nearest branch, you can contact us or visit the branch.

Your CIBIL score will automatically get updated after a month of your loan closure.

 

13. Can I use a personal loan to buy a car?
The personal loan provided by Tata Capital is an unsecured term loan that you can use to fulfil all your personal needs, including buying a car.

However, if you want to take out a bigger loan or want a loan with a lower interest rate, we suggest opting for our pre-owned vehicle loan. You can buy any used car, including a hatchback, a premium sedan, or an SUV, without dipping into your savings with a Tata Capital used car loan.

Our pre-owned car loan features include loan amounts covering up to 95% of your car value with a flexible repayment tenure of 12-72 months.

 

14. Should I make a down payment for a pre-owned car loan?
Down payments for pre-owned car loans are not a mandate at Tata Capital. 

But we suggest you make a down payment if you want a pre-approved car loan without affecting your credit score. This is because it significantly reduces the loan amount and your loan repayment duration, EMIs and total interest. So, you can repay your loans without impacting your savings, making you less likely to default on them and helping you maintain your credit score.

 

15. When Can You Take a Used Car Loan?
You can apply for a car loan for used cars for the following conditions-

Personal use : Using public transportation is not always feasible. Owning a car has become a necessity to commute comfortably from one point to the other without depending on someone else. You can avail of a used car loan to buy a car for personal use. This can include commuting for daily chores or emergencies like getting a loved one to the hospital on time.

Business use : If you frequently find yourself on the move to meet clients or make deliveries, buying a second-hand car will make the commute more convenient. A used car loan financing will help you make this purchase easily.

 

16. What are the EMI options available for a pre-owned car?
When you purchase a second-hand car on EMI with Tata Capital, you get the option to choose between Standard EMI and Structured EMI plans. The standard EMI plan offers a fixed loan principal and interest rate throughout the loan tenure. As a result, the EMI will also remain the same. 

On the other hand, the structured EMI plan allows you to customise your second-hand car loan EMI. With this option, you will pay lower EMIs during the initial months of the loan tenure and gradually increase them over time. 

 

17. How to make used car loan application easy?
Here are some tips you can follow for a smooth application process-

Compare eligibility conditions, interest rates, processing time, fees, and charges of different lenders to find the best deal before applying.

Apply for used car loans online to reduce your processing time and to get quick loan approval.

Keep all relevant documents for your application ready to avoid any last-minute hassle.

Use an online EMI calculator to get a rough estimate of your potential EMIs.

Look for a lender who is credible and transparent before you apply. Tata Capital assures you of only the best deals, making us your best option to secure finance for used cars.

 

18. What are the important things to do when buying a pre owned car?
Before you buy a second-hand car on EMI, make sure you follow this checklist-

Carry out a basic hygiene check of the car, its history, and its owner. Finalize the car only if it's in satisfactory condition.

Take a test drive to check the car’s performance.

Have a mechanic inspect the car because if you find any technical issues, you can ask the owner to fix them before striking a deal.

Make sure all car documents are accurate and updated. This includes the original invoice, Pollution under Control certificate (PUC), RC book, insurance papers, etc.

Transfer the RC to your name by filling out Form 29 and Form 30 issued by RTO to transfer the RC to your name.

 

19. What Factors Affect Your Used Car Loan Eligibility?
Your used car loan eligibility is based on many factors including, income, credit score (preferably 750 or above), outstanding loans, and work stability.

 

20. How to Improve Your Second-Hand Car Loan Eligibility?
You can improve your second-hand loan eligibility by opting for a higher down payment which will reduce your loan amount, maintaining a good CIBIL score, choosing a suitable loan tenure based on your affordability, and opting for a willing co-applicant with a good credit score.

 

21. What are the available payment options for Used Car Finance?
You can visit our website or use your mobile phone to pay your EMIs online anytime and anywhere. You can also make EMI payments for your car loan with a cheque. All you need to do is visit the nearest Tata Capital branch, write a cheque, and drop it off at your convenience.

 

22. What are the 6 reasons to choose Tata Capital for a Second-hand Car Loan?
Here’s why are 6 reasons to choose Tata Capital for a second-hand car loan-

Apply for a used car loan for greater convenience.

We ask for minimal documents while processing your pre-owned car finance request.

You can choose from a range of options like ECS, post-dated cheques, and online payment to repay your loan.

Avail of the best interest rates in the market.

Apply for a loan for used cars as high as Rs. 50 lakhs. 

After we receive and verify your documents, you will get instant approval through our secure platform.