What is a Used Car Loan?

A used car loan, also known as a pre-owned car loan, is a type of loan offered by banks and NBFCs (Non-Banking Financial Companies) to individuals who want to purchase a second-hand vehicle. These loans typically cover up to 85-90% of the car’s value and can be repaid through EMIs over a fixed tenure.

Why Choose a Used Car Loan in Delhi?

1. Affordability

Used cars are significantly cheaper than new cars, and financing them with a loan allows buyers to pay in easy installments rather than a lump sum.

2. Quick Approval

Lenders in Delhi offer fast processing and approval for used car loans, especially if you have a good credit score and stable income.

3. Wide Range of Choices

Delhi has a large used car market, offering buyers many options in terms of models, brands, and price ranges.

4. Low Depreciation

Used cars don’t depreciate as quickly as new cars, making them a better investment for budget-conscious individuals.

Top Features of a Used Car Loan in Delhi

• Loan Amount:₹1 lakh to ₹50 lakhs, depending on the car’s value.
• Loan Tenure:12 months to 84 months.
• Interest Rate:Starts from 9% p.a. and can go up to 18% depending on the lender and borrower profile.
• Processing Fee:Usually 1% to 2% of the loan amount.
• Prepayment Options:Most lenders allow foreclosure after 6-12 months with minimal charges.

Eligibility Criteria for Used Car Loans in Delhi

The eligibility requirements for used car loans are quite flexible. However, here are the general criteria:

• Age:Applicant should be between 21 to 65 years.
• Income:Minimum monthly income should be ₹15,000 or more.
• Employment:Salaried, self-employed individuals, and professionals are eligible.
• Credit Score:A good CIBIL score (650 and above) enhances loan approval chances.

Residence:Must be a resident of Delhi or NCR region with valid address proof.