Used Car Loan Interest Rate

You aspire to buy a car and need a loan to get your dream vehicle. Choosing a second hand car is a good option when your budget is low, or you are buying your first car. A pre-owned car needs to be chosen with care. A well-maintained vehicle will cost you less in maintenance over time. The used car loan interest rate is low and makes the cost of buying a four-wheeler affordable. The Muthoot Capital’s used car loan is hassle-free, and the second hand car loan interest rate is competitive. You can borrow up to 95% of the value of the car to be provided as a loan.

Used Car Loan Interest Rate – Additional Benefits

A second hand car loan from Muthoot Capital has many benefits. The used car loan rates are low, and the loan process is seamless.

  • Attractive schemes allow you to avail up to 95% of the total ‘Insurance declared value’ of the used car as a loan.
  • The flexible repayment option allows you to choose a tenure ranging from 12 to 60 months.
  • The used car loan interest rate is as low as 8.5-9%. There are various schemes available.
  • The approval and disbursement are quick and hassle free.
  • Muthoot Capital offers loans under no income base, income base and asset proof base for its customers.
  • The documentation is simple and easy.
  • The application process is also very simple.
  • You can avail of a loan from Rs 50,000 to Rs 10 Lakhs.

Factors that Impact Used Car Loan Interest Rate

Many factors that affect the second hand car loan interest rate.

  • Credit score: Muthoot Capital runs a credit report check that evaluates your credit score. This includes your closed and current credit accounts, the history of payments made and the length of your credit usage.
  • Ratio of debt to income: It is a simple way to understand the amount of money you owe to various lenders in ratio to your total income.
  • Size of loan and down payment: The size of your down payment also affects used car loan rates. A larger down payment means favourable terms and conditions.
  • Age of the vehicle: The age of the vehicle affects lending rates as the value of the vehicle is an important consideration. Newer vehicle implies a higher resale value of the car in an unfortunate case of repossession of the vehicle.
  • Tenure of the loan: Customer has to pay smaller EMIs when loan tenure is longer due to bigger payout duration. The EMIs increase when the loan tenure gets shorter.
  • Loyalty: If you are an existing customer of Muthoot Capital and fulfil the eligibility criteria you may get a favourable rate of interest as you have a relationship with the company.

Used Car Loan Interest Miscellaneous Charges

Some miscellaneous charges are a part of availing a used car loan. You can calculate the EMI amount by using the free EMI calculator that is available on the site. However there might be other charges such as:

  • Apart from the used car loan interest rate, there is a processing fee that is charged from the customer.
  • The most important cost that is sometimes overlooked is that of changing the owner registration. The authorities mandate that the vehicle must be registered in your name once all the paperwork is done and all requisite charges are accounted for.
  • The insurance cover needs to be checked and payments if any must be done to ensure that the documents are in order.
  • Some taxes are applicable on the sale of the car and the loan taken. These may be nominal but are a part of the charges that need to be paid over and above the second hand car loan interest rate.
  • There may be a nominal charge for notarizing the bill of sale which differs from state to state.

All the costs are transparent and clear when you avail of the loan. The Muthoot Capital representative will ensure that you have the requisite knowledge before you sign the deal.

EMI Calculator

Loan

Tenure (Months)

Tenure

Interest Rate

%

Monthly EMI

₹ 1750

EMI Calculator

Loan

Tenure (Months)

Tenure

Interest Rate

%

Monthly EMI

₹1750

Used Car Loan Interest Rate FAQs

The current used car loan interest rate starts from as low as 8.99*% and varies according to the customer profile (T&C apply). The rates are dependent on the different schemes that are active at the time and other variables like model, age and condition of car, your credit history and the type of car you want to buy.
The lowest used car loan rates is 8.99*% (T&C apply). You can contact our customer care representative to help you know the lowest interest rate that will be charged for the second hand car you are planning to buy.
There are some easy ways to lower the interest rate for your used car. The best way is to have a good credit history which will give you a higher CIBIL score. A higher score means a lower interest rate. You need to have a good CIBIL score to avail the loan and get a low loan interest rate on your second hand car.
When compared to interest rate on brand new models and cars, yes, the used car loan interest rate is slightly higher. The main reason for this difference is the car vintage which signals more services. However, if you are buying a two-year old car as compared to a seven-year old car, the interest rate will be lower.
When choosing between loan interest rate for a second hand car, you need to keep your future income and predicted interest rates in mind. Both have their advantages and disadvantages. You can contact our customer care representative at 1800 102 1616 or walk into your nearest branch to get clarity on which one would suit you more.