What are the processing fees applicable on a pre-owned car loan?

Applicants can purchase a used car with our loan on cost-effective terms. We levy only a 1% processing fee, plus taxes, on the pre-owned car loan. This is a nominal fee and can help you save money for other formalities involved in the purchase.

Second Hand Car Loan Interest Rate & Applicable Charge

Q: What are the used car loan rates offered by Poonawalla Fincorp?

Poonawalla Fincorp offers some of the lowest rates in the market. Our pre-owned car loan rates start at just 11% p.a. With this instrument, you can be sure to enjoy an affordable experience without worry about exceeding your budget.

Q: How can I get the lowest used car loan interest rate?

To get the lowest interest rate for car loan from Poonawalla Fincorp, meet all the eligibility criteria, submit the required paperwork, and maintain a good financial profile.

Q: Are there any penalties levied on the Poonawalla Fincorp Pre-Owned Car Loan?

Yes. Defaulting on loan payments will attract a default charges. Here, borrowers are charged 3% default charges, plus taxes.

Used Car Loan Competitive Interest Rates and No Hidden Charges

Affordability is a key factor when buying a second-hand car, and it is important to pick an instrument that works in line with your goals. To cater to this need and to help borrowers purchase a vehicle of their choice, our used car loan has one of the most competitive rates and low charges. With a second-hand car loan, we ensure you have a borrower-friendly experience when buying a used car.

	Interest Rate Buying a used car is much more affordable when you opt for a used car loan. With our competitive interest rate starting at just 11%* p.a., you get the best price for your car and are assured of an affordable experience all through.
	Loan Processing Fees Processing fees are the charges we levy for handling loan processing and other administrative services. Our second-hand car loan has a nominal processing fee of up to 1% of the approved sanction amount, plus taxes.
	Foreclosure Charges Foreclosing the loan is a smart option and can help you save money. To make this experience easy, we charge a 0% fee if paid from your own sources and a nominal 4% fee if paid from other sources, on the outstanding principal. Plus, additional taxes as applicable on foreclosures.
	Default Charges 24% per annum, on the defaulted EMI amount, as more particularly specified in the Default Charges. In case of repayment instrument dishonour charges there will be a charge ₹500 per bounce, plus taxes as applicable.
	Loan to Value (LTV) Buying a car is an overwhelming experience, and we want to ensure you don’t have to make any compromises. With our used car loan, you can usually get up to 100% of the car’s value as a sanction.

How to Calculate Pre-owned Car Loan Interest Rate?

The interest rate for a used car loan can vary depending on a number of factors, including your credit score, the amount you're borrowing, the lender you choose, and the loan term.

Check Your Credit Score: Lenders use your credit score to determine your creditworthiness, and a higher score can help you secure a lower interest rate. Make sure your credit report is accurate and dispute any errors.
Choose a Shorter Loan Term: A shorter loan term typically comes with a lower interest rate, as the lender takes on less risk.
Improve Your Credit Score: If your credit score is low, take steps to improve it before applying for a second-hand car loan. Pay your bills on time, reduce credit card usage, and avoid applying for new credit.

Using the loan amount and the interest rate offered to you, you can calculate your monthly payments to plan your budget in a better way. The following formula is used to calculate the EMI amount on your used car loan.

E = [P x R x (1+R) N] / [(1+R) (N-1)]
Where,
○ Principal or the loan amount
○ R = Monthly interest rate (annual interest rate/12)
○ N = Number of monthly instalments

This formula is used to calculate the fixed monthly payment that a borrower has to make towards the loan re-payment, which includes both the principal amount and the interest charged on it.

P = Loan Amount
R = Rate of Interest
N = Loan Tenure

Used Car Loan – Schedule of Charges & Other Features

Pre-Owned Car Loan Interest Rates	11% p.a onwards
Loan Amount	₹1 Lakh - ₹75 Lakhs
Loan Processing Fees	Up to 1% plus applicable taxes
Lowest EMI per month	Starting from ₹1903* per Lakh for 72 months
Loan Tenure	12 - 72 months
Prepayment/Foreclosure Charges	0%* If paid from own sources. 4% of the outstanding loan amount plus taxes if paid from other sources
Default Charges	24% per annum
Repayment Instrument Dishonour Charges	₹500 per bounce plus applicable taxes
Stamp Duty	At actuals (as per state)
No Other Hidden Charges

Note: Default Charges: Penalty will be charged for non payment of EMI amount and for non-compliance of material terms and conditions, as more particularly specified at Default Charges.

Factors Affecting Used Car Loan Interest Rate & Charges

We assess several factors of your financial and credit profile to offer the most appropriate interest rate. Depending on your financial stability, credit history, and income status, you can even get approval for a competitive second-hand car loan interest rate in India. Poonawalla Fincorp offers you competitive used car loan interest rates so that you don't have to worry about paying high EMIs.

Here are the factors that affect the used car loan interest rate & charges.

Income
Credit score
Employment status

Credit history
Existing debt
Relationship with the lender

Types of Used Car Loan Interest Rates

There are two types of used d car loan interest rates, fixed and floating. Knowing all about these types is important as it helps you borrow smartly.

Fixed Interest Rate

If you don't take any financial risks and prefer stability, a fixed-rate used car loan is a choice for you. This is because the interest rate remains the same throughout the tenure. The main downside of a fixed-rate loan is that it costs a little higher than a floating interest-rate loan. If the interest rate falls due to policy changes, a fixed-rate used car loan will not be affected in this scenario. As a result, the borrower will be required to pay the same predetermined amount each month. However, irrespective of a fixed or floating interest rate for old car loan, you can find the best used car loan with competitive interest rates at Poonawalla Fincorp.
Floating Interest Rate

Floating interest rate changes based on the financial market. This is better for those comfortable with some risk, as the interest rate can increase or decrease. If the policy changes are favourable to the customer, the interest rate is accordingly lowered, and you end up paying a lot less as interest. However, there is always a risk that the policy changes are unfavourable to the customer, and the interest rate may be higher than what you initially signed up for. So, apply at Poonawalla Fincorp and get competitive second-hand car loan interest rates in India.

Fixed interest rate	Floating interest rate
Interest rates remain constant	Interest rates can change depending on the fluctuation in the market
Your EMI payable will remain the same throughout the re-payment tenure	Your EMI payable is likely to change during the re-payment tenure.
You are likely to be charged a pre-payment charge if you prepay your loan	You may not be charged a pre-payment charge if you prepay your loan

Tips to Avail Used Car Loan at Competitive Interest Rate

A used car loan with an attractive interest rate is great for fulfilling specific goals without having to strain your budget. If you have a good credit score and credit history, getting a low-interest loan could be possible. Make sure that you maintain a good credit score and make regular repayments. Check out the table below for more tips on availing of second-hand car loans at a competitive interest rate.

Following are some points that need to be noted while getting a second-hand car loan at a competitive interest rate:

Maintain a healthy credit score
Look out for pre-approved offers from lenders
Competitive interest rate & charges
Online loan application in few steps
Minimal documentation

Quick loan processing
Swift approvals
100% transparency with no hidden charges
Customized used car loan for easy loan planning

Frequently Asked Questions about Interest rate & Applicable Charges for Used Car Loan

What are the processing fees applicable on a used car loan?

Applicants can purchase a used car with our loan on cost-effective terms. We levy a nominal up to 1% processing fee on the sanction amount and taxes on the old car loan.

What are the used car loan rates offered by Poonawalla Fincorp?

Our used car loan interest rate starts at just 11%* p.a. ensuring it does not affect your budget.

How can I get the lowest used car loan interest rate?

To get the lowest interest rate for a used car loan from Poonawalla Fincorp, meet all the eligibility criteria, submit the required paperwork, and maintain a good financial profile.

Are there any penalties levied on the Poonawalla Fincorp used car loan?

Yes. Defaulting on loan repayments will attract a default charges. Here, borrowers are charged 2% of EMI amount as penalty on interest, plus taxes.

*Terms & Conditions Apply