Used Car Loan Interest Rate of SBI, ICICI, HDFC, Kotak, Indian Bank Compare

Last Updated 18th Feb 2020

Used Car Loan Interest Rates, Calculator Feb 2020 – Car, MUV, SUV

  • Compare and get lowest used car loan interest rates @ 13.00%
  • Maximum loan amount depends upon the market value or depreciated value of the car
  • Maximum loan tenure of used vehicle loan ranges upto 5 years
  • Get best used car loan offers for both salaried and self employed individuals
  • Second hand car loan is available at both fixed and floating rates
  • Apply for used car loan online and avail attractive cashback upto Rs. 1,000

Used Car Loan Interest Rates Comparison, Lowest EMI Feb 2020, Best rates

Bank Car Loan Interest Rates Lowest EMI per lakh for Max TenureMaximum Loan Amount
HDFC Bank Car Loan 13.00% Fixed ₹ 2,275 for 5 years 80% of market value
SBI Car Loan 12.60% Floating ₹ 1,798 for 7 years 85% of on-road price
ICICI Bank Car Loan 10.50% Fixed ₹ 2,149 for 5 years 80% of market value
Kotak Bank 17.00% Fixed ₹ 2,485 for 5 years 90% of market value
PNB 11.20% Floating ₹ 2,184 for 5 years 70% of market value
Union Bank of India 11.60% Floating ₹ 2,204 for 5 years 50% of market value
Central Bank of India 9.95% Floating ₹ 2,122 for 5 years 75% of market value
Andhra Bank 11.85% Fixed ₹ 2,217 for 5 years 60% of market value
Federal Bank 11.15% Fixed ₹ 2,182 for 5 years 75% of depreciated value
Bank of India 8.90% Floating ₹ 3,175 for 3 years 70% of market value
Bank of Maharashtra 9.40% Floating ₹ 2,095 for 5 years 50% of market value
Indian Bank 12.25% Floating ₹ 2,237 for 5 years 60% of market value
OBC 10.90% Floating ₹ 3,269 for 3 years 70% of market value
Bank of Baroda 10.45% Floating ₹ 3,248 for 3 years 80%
  • Car loans are available for buying a new car, a used car, an SUV or an MUV.
  • SBI, ICICI, HDFC, Kotak, Bank of Baroda, Indian Bank, Bank of India and IndusInd Bank are among the many car loan options available.
  • Car loan schemes of each bank differ in terms of interest rates and other factors like maximum loan amount, loan tenure, EMI, processing fees and prepayment fees.
  • EMI schemes available include 0 interest scheme, advance EMI scheme, reducing balance scheme, fixed rate scheme, floating rate scheme and zero interest schemes.
  • So, compare the schemes as shown below and then select the one that suits you.

Used Car Loan Eligibility EMI

  • What is the loan amount eligibility based on your income and the car or SUV or MUV model you are planning to buy?
  • What is the EMI amount and loan tenure per Rs. 1 lakh loan amount?
  • Is the EMI payable in advance or at end of month?
  • What are the processing charges payable?
  • Can you make prepayment of the car loan? If yes, are there are charges and restrictions on when and how much you can pay?

You may be wondering why we haven’t listed car loan interest rate in the above list of questions regarding car loan? That’s because many banks and car finance companies quote interest rates in a way so as to make them look low when they are not. They may quote flat rates or advance EMI rates.

Car Loan Queries

  • Ex-showroom price is the price of the car including excise duty but excluding local duties and statutory charges.
  • On road price is the price you pay for the car including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on road price tends to be 15-25% more than the ex-showroom price and may vary from city to city.

Caution - Note that a car loan of 80% of on road price is likely to be more than 95% of ex showroom price.

  • EMI in arrears scheme – this is the standard method of paying EMI where the interest for a month (and principal repayment) is payable at or after the end of the month.
  • Advance EMI scheme – you pay interest and EMI at the beginning of the month. So, each month, you pay interest on amount that you have already repaid to the bank at the beginning of the month.

Caution – In case your bank charges EMI in advance, the EMI amount should be about 1% lower than that in case of EMI in arrears. For those interested in more precise figures, EMI per Rs. one lakh loan amount on a 60 month car loan at 10% rate of interest as per EMI in arrears method comes to Rs. 2,125 while that as per EMI in advance method comes to Rs. 2,107.

  • Zero interest car loan scheme (also called 0% finance scheme) – this is one of those free lunches that actually doesn’t exist. So, beware of schemes that claim to offer zero interest. It is likely that the car company is offering a subvention scheme whereby the interest is paid by it to the bank upfront. Now, you could always ask the car dealer for the same amount as a cash discount. It’s like padding up the price of the car for the interest amount and marketing it under a nice name.
  • Flat rate of interest car loan scheme – in this method, you pay interest on the entire principal amount of car loan till maturity. So, on a Rs. five lakh car loan at 10% for 5 years, you would have to pay back a total of Rs. five lakhs plus interest of Rs. 50,000 a year, that is a sum total of Rs. 7,50,000. The EMI in this case would be Rs. 12,500.
  • Reducing balance car loan scheme - in this method, you pay interest on the amount outstanding each month. With each EMI, the balance principal amount keeps reducing. So, on a Rs. five lakh loan at 10% for 5 years, you would have to pay back a total of Rs. five lakhs plus interest on reducing basis which comes to Rs. 1,37,411 or Rs. 6,37,411 including principal. The EMI in this case would be Rs. 10,624, a good 15% less than that for a flat rate scheme.

Caution – Never get hoodwinked with the low rate of interest offered on a flat rate scheme. A flat rate of 10% is equal to an interest rate of 18.7% on reducing rate basis on a five year car loan.

Why MyLoanCare???

Nowadays, almost all banks offer attractive schemes on Car Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Car Loan rates. MyLoanCare helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cashbacks and refer and earn benefits.

*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More