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Used Car Loan
Interest Rates & Fees

two-wheeler-loans

Why postpone your decision to buy a set of wheels when Hero FinCorp offers the best used car loan interest rate on the market?

What is the Used Car Loan Interest Rate?

The used car loan is the best way to get out of financial constraints and drive your dream four-wheeler home. The funding amount offered under this financing option ensures you can get the car with the most high-end features without worrying about its cost. The vehicle you purchase with a used car loan is hypothecated with the lender until you repay the entire outstanding dues with interest. The secured nature of this loan allows you to get a lower pre-owned car loan interest rate, provided you have a good credit profile.

Hero FinCorp Used Car Loan Interest Rate

The used car market is flooded with vehicles from almost every segment. You can select from a low-cost hatchback to a luxurious sedan. At Hero FinCorp, we make sure that you do not have to forego your dream car due to funding issues or high interest rates. We provide an affordable used car loan interest rate based on your credit history, income, and the vehicle you wish to purchase. So, what's stopping you from getting your hands on the steering wheel of your dream car?

How to calculate the Pre-owned Car Loan Interest Rate?

We calculate the used car loan interest rate using the reducing balance method. This means that you must pay the interest rate on the outstanding loan balance each month rather than the principal loan amount. When you pay off your monthly obligation, your interest is recalculated to be less than the previous month's interest amount.

The mathematical formula you can use to calculate your EMI is detailed below.

EMI = [P x R x (1+R)^N] / [((1+R)^N)-1)]

Here,

EMI is the payable equated monthly instalment,
P denotes the principal loan amount,
R stands for applicable interest rate, and
N stands for the repayment tenure in months.

reduce balance formula

How to calculate Used Car Loan Interest Rate online?

Calculating your monthly obligations or interest rate on a used car loan using a manual formula is time-consuming, and the result you get is prone to errors. Thus, we recommend that you use our used car loan EMI calculator to obtain accurate results in the blink of an eye. You can use the tool to calculate your monthly debt obligation in advance. It also tells you how much interest you will be paying throughout the loan term. In order to use this tool, you must enter three variables: loan amount, applicable interest rate, and payback tenure.


Loan Detail

Select Loan Amount

Min ₹ 50,000

Max ₹ 50,00,000

Interest Rate

22 %

Min 13.5%

Max 22%

Select Loan Repay Duration

5 Years

Min 1 year

Max 5 year

Your Estimated EMI

₹ 4478

Factors that Influence Used Car Loan Interest Rates in India

Many factors affect your pre-owned car loan interest rates, but the most important ones are listed here.

Debt-to-income ratio

Your debt-to-income ratio reflects the amount of money left over after paying off your existing loan EMIs. You may be unable to obtain an affordable second-hand car loan interest rate if this ratio exceeds 50%.

Repayment tenure

A longer repayment tenure results in a lower, more affordable EMI. It further reduces the default risk significantly, allowing us to sanction funds at a lower interest rate. Conversely, if you extend the loan term, the total interest payable will be high. Thus, always use the EMI calculator before deciding on tenure.

Credit history

Your credit history informs us how responsible you were with past debts. If you have a history of defaults or missed EMI payments, your application may be denied, or you may need to pay a higher interest rate on a second-hand car loan.

Income

Your income helps us determine whether you will be able to pay off your used car loan on time. In addition, we consider your employment status, employer reputation, and business type (if self-employed) when calculating your second-hand car loan interest rate.

Car condition

The health of your car is a key factor when arriving at a pre-owned car loan interest rate. Your loan may not be approved on favourable terms and may even be denied if the vehicle you intend to purchase has a damaged engine or battery, has its interiors in a poor condition, or has been in a significant accident.

How to get the best Used Car Loan Rate of Interest?

You can obtain a lower used car loan interest rate by following the tips recommended below.

Points to Consider while Availing a Used Car Loan

Frequently Asked Questions

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