Used-car loan: A longer tenure will mean lower EMI but higher interest cost

Topics used car loans

  • Salaried individuals and self-employed professionals can apply for used car loans.
  • Some lenders offer flexi EMI car loans that allow you to repay your loan according to convenience.
  • The rate of interest on this loan varies from 8.55-16.75 per cent.
  • You can get a loan tenure of up to five years, or in some cases, even seven years.
  • Longer the tenure, more affordable the EMI, but that also means higher total cost of the loan.
  • Most banks don't charge a part-prepayment penalty. Some charge up to 5 per cent of the outstanding loan amount.
  • The loan amount goes up to 90-100 per cent of the car’s value.

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