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Used Car Loan Interest Rate

  • Avail Up To 95% of the Total IDV
  • Free to Choose a Repayment Tenure
  • Enjoy Quick and Hassle-Free Processing.

Know About Interest Rate on Used Car Loan

A used-car does not necessarily come cheap. You might need a loan to finance a second-hand car too. Muthoot FinCorp aims to offer financial support for all such needs. Find low-cost used car loans available at attractive interest rates and reap its benefits. 

Call at 1800 102 1616 or visit your nearest Muthoot FinCorp branch to know all about used car loan interest rates.

What are the Additional Benefits of Used Car Loan Interest Rate at Muthoot FinCorp?

Muthoot FinCorp’s used car loan comes with a host of features. Along with low interest rates and seamless processing, you get the following benefits:

  • Avail up to 95% of the total insurance declared value (IDV) of your chosen vehicle
  • Choose a repayment tenure ranging from 12-60 months.
  • Find used car loan schemes with interest rate starting from 8.5-9% per annum. 
  • Enjoy quick application, easy documentation and hassle-free processing.
  • Avail a loan of any amount between Rs 50,000 – Rs 10 lakhs.

How is Interest Calculated on Used Car Loan?

The interest on a used car loan is based on the used car loan interest rate applicable. It is determined according to the borrower’s profile, principal amount and the chosen tenure. 

A simple interest method is applied on the principal amount to calculate the interest amount.

Used Car Loan Miscellaneous Charges

Along with interest, Muthoot FinCorp levies certain minimal charges as a cost for availing a used car loan. This charges are as follows:

  1. A minimal processing fee is levied on the loan along with the used car loan interest rate.
  2. The transfer of registration documents from the previous owner to the next may incur some cost. Such transfer documents are necessary to apply for the loan.
  3. The insurance for the used-car should be up-to-date. The borrower may have to pay a certain fee to ensure the insurance documents are in order.
  4. Certain taxes are levied by the government on the purchase of a second-hand car or a loan taken for the same. These are nominal charges but are to be paid over and above the used car loan interest rate.
  5. If the vehicle is being bought in a state different from the state of previous registration, a nominal notary charge may also be levied.
  6. There may be a nominal charge for notarizing the bill of sale which differs from state to state.

The used car loan EMI calculator populates the total cost of the loan including processing charges for your ease of planning. Other charges vary from borrower to borrower. Muthoot FinCorp ensures that borrowers have the requisite knowledge of all the charges before availing the loan.

How to Apply for Used Car Loan at Muthoot FinCorp?

Applying for a used car loan at Muthoot FinCorp is quick and easy. First, ensure that you meet the following criteria before applying for the loan:

  • You should be 21 years of age or above at the time of application and not more than 65 at the time of maturity of the loan.
  • You should meet the minimum salary/profit requirements:
    • Salaried: minimum Rs 1,80,000 per annum
    • Net profit of business: Rs 1,50,000 per annum

If you meet the eligibility conditions, follow the steps below:

Step 1: Click on the ‘Apply Now’ button on the website or visit your nearest Muthoot FinCorp Branch.

Step 2: Submit your documents.

Step 3: Get your loan quickly approved for an instant disbursal and drive home in your car.

Frequently Asked Questions

Used car loan interest rate at Muthoot FinCorp start at 8.99%* per annum. The interest rate applicable to the loan will depend upon the used car loan scheme and the borrower’s profile.

You can lower the used car interest rate by making a larger down payment on the loan. Borrowing a larger principal amount leads to a hike in the interest rate. A bigger down payment will lower the principal amount, subsequently reducing the interest rate. You may also receive additional rebate on the interest rate if you have a good credit score.

 

The lowest used car loan interest rate offered by Muthoot FinCorp is 8.99% per annum. However, this rate depends on the scheme, borrower’s income profile, credit history, LDV of the used car, etc.

Call us at 1800 102 1616 for more information.

In comparison to loans on new cars, the interest rates on second hand car loans are slightly higher. This is because the car, due to its age, may require more services and becomes a bigger liability than a brand-new car.

Whether a fixed or reducing used car loan interest rate is suitable depends on certain factors. Keep your current income, your future income, any upcoming large expenses and prediction of future rates in mind to make an informed decision.

Call our representative at 1800 102 1616 or visit your nearest Muthoot FinCorp branch for further guidance.

  • Why Choose Muthoot FinCorp: India’s Leading NBFCs

    Over 4200 branches across India

  • Why Choose Muthoot FinCorp: India’s Leading NBFCs

    134+ years of legacy

  • Why Choose Muthoot FinCorp: India’s Leading NBFCs

    Over 30,000 employees serving millions of customer

  • Why Choose Muthoot FinCorp: India’s Leading NBFCs

    Walk in of over 1,00,000 customers a day

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