Minimum Documents
The bank allows flexible repayment tenure from 18 months to 84 months. You can avail of convenient and customized repayment plans. You can enjoy preferential pricing if you are an existing HDFC Bank customer.
Running short of certain documents? HDFC Bank can also grant you a Second-Hand Car Loan without documents. You can avail of 80% of your car value as a loan for three years and 85% for five years without income proof.
A 72-month loan was the most common term for a used car loan in the first quarter of 2022.
Lower monthly payments are appealing, but taking out a loan based on this metric alone may not be a great decision. Check available terms and consider how the loan’s duration impacts the overall cost.
In general, longer terms reduce monthly expenses but accrue more interest. In contrast, shorter terms increase monthly costs, but you may pay lower interest.
How do personal car loan repayments work?
If successful in applying for a personal car loan, you’ll receive the money in your account to buy the car. Here’s how the repayments work. You’ll pay in monthly installments. The majority of car loans are paid back in monthly installments. How much these cost depends on factors including the overall loan amount, the interest rate and the loan term. The lengthier the loan term, the less you’ll pay each month, but the longer you’ll be doing so for, and the more interest will build up.
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 24×7. 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 very convenient way to finance the purchase of a second-hand car. Availability of finance for used cars helps you pay for your favorite car without straining your finances.
It is a smart and economical way to fund your purchase. With Tata Capital’s used car finance, you can fund anything from hatchbacks to SUVs to premium sedans. Avail of up to 95% of your car value from Tata Capital. Apply today and enjoy flexible EMI repayment options and quick disbursal of pre-owned car finance.
Don’t let a lack of funds stop you from bringing home your dream car. Get finance up to 50 lakhs with Tata Capital. Our loans also come with minimum documentation and affordable interest rates. Your favorite Car is just a click away.
How To Get the Best Auto Loan Rate In 2024
The best way to get a low interest rate on an auto loan is by doing your research and preparing ahead of time to set yourself up for success. Here are some general steps to follow:
Improve your credit score. Your credit score is one of the most important factors that impacts your interest rate. The higher your credit score, the lower your rate. To qualify for a lower interest rate, it’s essential to improve your credit, if necessary. Paying down existing debt may boost your credit quickly.
Shop around for a lender. Not all lenders are the same. Get quotes from different lenders at the dealership, your local financial institution and online lenders to find the best rates.
Increase your down payment. Dealers require applicants to pay a certain amount toward a down payment. If you pay a larger down payment than your lender requires, it shows you have more skin in the game and pose less risk to the lender. This can result in the lender offering you a lower interest rate.
Shorten your repayment term. Risk is key for lenders, and shorter loan terms means reduced risk. Financing over five years compared to six years, or four versus five, will usually get you a better rate, which means you’ll pay less over the life of the loan. But doing so will increase your monthly payment.
Add a co-signer. If your credit is too low to qualify for a car loan, you might be able to improve your rate by adding a co-signer. When you use a cosigner, you are effectively piggybacking on their credit score to help you get a lower rate and/or loan approval. Your co-signer becomes responsible for repaying your loan if you fail to do so.
Secured Personal Loans
Oportun provides the option for a secured personal loan against your car title for car owners in Arizona, California, Florida, New Jersey, and Texas. Securing your loan with your car title gets you more money– $2,525 to $18,500– compared with an unsecured personal loan. Secured loans also typically offer lower APRs than personal loans do. Your car title will be collateral against the loan, but your car will stay with you and you will continue driving as usual while you make loan payments.
Terms and Conditions
Every auto loan comes with terms and conditions. Though it’s easy to get caught up in the excitement of buying a new vehicle, be sure to read your agreement before signing. You should thoroughly understand everything, from what you owe each month to how to make payments to the lender. Your terms and conditions will also specify the interest rate, term length, and applicable fees.
How an Auto Loan Works
First, let’s discuss how an auto loan works. It’s a type of personal loan that uses your vehicle as collateral and gives you the money you need to fund your car purchase. It’s the ideal solution for a consumer who can’t pay for their vehicle in full when they initially purchase it. The consumer can use their car as they pay back the lender according to their contract’s terms. At the end of the loan period, the borrower will make the final payment and have 100 percent ownership of the vehicle.
No Prepayment Penalties
Want to pay your loan off ahead of time or put a little extra toward your principal balance? No worries. Your Teachers auto loan has no prepayment penalties, meaning you can pay as much as you want, as early as you want. You can even make your payments online with Quick Pay.