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Looking for a used car loan in Chennai? Discover the latest interest rates, check eligibility criteria, and see what documents you need to apply easily.
Chennai, a dynamic metropolitan city, is witnessing a steady rise in demand for personal transport. Buying a pre-owned car has become a practical and budget-friendly choice, supported by various lenders offering quick and easy financing solutions.
Many platforms and lenders now offer a smooth, fast-tracked financing process with quick approvals and minimal paperwork. On many platforms, you can now compare loan offers, check your eligibility instantly, and complete the application process online.
You can get up to 100% funding based on the car’s valuation. This means you may not need to dip into your savings for the purchase.
You benefit from competitive interest rates that keep your EMIs manageable. This makes it easier to plan your monthly finances.
You can choose a repayment period of up to 7 years with some lenders. This flexibility helps you align your EMIs with your income and expenses.
The loan process requires only a few basic documents. This keeps the application journey simple and hassle-free.
Before applying, make sure to check the applicable used car loan interest rate in Chennai. Below are the interest rates and other key charges offered by various banks and financial institutions:
Parameter |
Details |
|---|---|
Starting Interest Rate |
10% p.a. onwards |
Maximum Loan Amount |
Up to ₹2.5 Crores |
Loan-to-Value (LTV) |
Up to 100% of the car’s value |
Maximum Tenure |
Up to 84 months |
Processing Fee |
Up to 1% of the loan amount |
Disclaimer: The rates are subject to change at the lender’s discretion.
Before applying for used car loans in Chennai, Tamil Nadu, you typically need to meet certain eligibility criteria. These help lenders assess your creditworthiness and ability to repay the loan. Here are the details:
Nationality: Only Indian citizens are eligible to apply for a used car loan
Age Requirement: Applicants must be between 21 and 65 years old at the time of applying
Employment Criteria: Both salaried and self-employed individuals with a stable income are eligible to apply
Work Experience (Salaried): Salaried applicants should have a minimum of 1 year of continuous work experience
Minimum Income (Salaried): Typically, salaried applicants must earn ₹2 Lakh per annum or more, although this may vary across lenders.
When applying for a used car loan in Chennai, you need to submit certain documents for verification. These help lenders assess your identity, income, and ownership of the vehicle and generally include:
Duly filled application form
KYC documents (Aadhaar Card, Passport, or Voter ID)
PAN Card (mandatory)
Income proof (ITR/Form 16/salary slips or appointment letter for salaried)
Salary slips for last 3 months
Bank statements for last 3 months (for self-employed)
Vehicle registration certificate (RC) of the used car
Applying for a used car loan in Chennai is simple and can be done online in just a few steps. Here are the steps for completing the application process smoothly:
Visit the lender’s official website or mobile app
Navigate to the ‘Loans’ section and select ‘Used Car Loan’
Enter the loan amount and preferred repayment tenure
Provide other necessary details and documentation
Agree to the terms and conditions and click on ‘Submit’
After submission, a representative will get in touch to guide you through the remaining steps
Yes. While it is quite difficult to get a used car loan in Chennai with a low CIBIL score or past defaults, you can still get it. You can opt for NBFCs for this loan, which may come with strict policies and loan terms.
There are many lenders offering car loans for used cars in Chennai, offering an LTV ratio of up to 100%. These include ICICI Bank, AXIS Bank, HDFC Bank, Shriram Finance, etc.
In most cases, a vehicle inspection report is not mandatory to get a used car loan in Chennai, but some lenders may require it based on the vehicle's age or condition.
The maximum tenure you can get to repay a used car loan in Chennai is 84 months, i.e., 7 years.
Yes, some lenders may offer zero-down-payment used car loans in Chennai. However, most prefer a down payment to reduce the lending risk.
Yes. NRIs can apply for a used car loan in Chennai. However, some lenders may require NRIs to provide an Indian guarantor for a used car loan.
Yes, lenders may levy a prepayment or foreclosure charge, typically up to 6% of the outstanding loan amount, plus applicable taxes.
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