Applicable fees and charges
Type of fee |
Applicable charges |
Rate of interest |
9.50% to 22% p.a. |
Processing fee |
Up to 2.95% of the loan amount (inclusive of applicable taxes). |
Documentation charges |
Up to Rs. 2,360 (inclusive of applicable taxes). |
Flexi fee |
Term Loan – Not applicable Flexi Term Loan (Flexi Dropline) - Up to Rs. 999/- (inclusive of applicable taxes) Flexi Hybrid Loan (as applicable below)
The charges above will be deducted upfront from the loan amount *Loan amount includes approved loan amount, insurance premium, VAS charges, and documentation charges. |
Prepayment charges |
Full prepayment (foreclosure)
Part-prepayment
|
Annual maintenance charges |
Term Loan: Not applicable Flexi Term Loan (Flexi Dropline):
Flexi Hybrid Loan:
|
Bounce charges |
Rs. 1,500 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
Penal charge |
Delay in payment of instalment(s) shall attract penal charge up to Rs. 25 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
Stamp duty (as per respective state) |
Payable as per state laws and deducted upfront from the loan amount. |
Legal and incidental charges |
Recovery of charges |
Repossession charges |
Recovery of charges maximum up to Rs. 50,000 (Inclusive of applicable taxes) |
Auction charges |
Recovery of charges |
Valuation charges |
Recovery of charges |
Stockyard charges |
Rs. 118 per day for 60 days (inclusive of applicable taxes) |
Loan re-booking charges |
Rs. 1,000 (inclusive of applicable taxes). |
Loan cancellation charges |
Rs. 2,360 (inclusive of applicable taxes) (Interest till cancellation to be borne by the customer). |
NOC for interstate transfer |
Rs. 1,180 (inclusive of applicable taxes). |
NOC to convert from private to commercial |
Rs. 3,540 (inclusive of applicable taxes). |
Broken period interest/ pre-EMI interest |
Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:
Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged: |
Factors affecting used car loan interest rates
Multiple factors can affect your used car loan interest rate. Here is the list of factors that play a crucial role in determining your interest rates.
CIBIL Score: One of the most important factors that affect your interest rate is your credit score. A high CIBIL Score indicates a good credit history and helps you secure a lower interest rate.
Debt-to-income ratio: Your debt-to-income ratio determines your loan repayment capacity. A lower debt-to-income ratio reduces the risk of default as you will have enough funds to pay your EMIs on time.
Income: Higher monthly income allows you to avail of a used car loan at a lower interest rate. This is because your lender is assured of timely EMI payment.
Occupation: Your used car loan interest rates also depend on your employment type. Depending on your profession - salaried or self-employed, your interest rate might differ.
Relationship with the lender: If you have a good track record with a lender, you might get a better interest rate on used car loans.
Used car loan interest calculation
Used car loan interest calculation is crucial for understanding the total cost of financing a pre-owned vehicle. To determine the interest amount, lenders apply the second-hand car finance rate to the principal loan amount. This rate is influenced by factors such as your credit score, loan tenure, and the lender’s policies.
Understanding used car loan eligibility is vital for securing a favourable interest rate. Eligibility criteria often include factors like credit score, income, employment status, and the age of the vehicle. Meeting these criteria can help you qualify for competitive used car loan interest rates and loan terms.
Using a used car loan EMI calculator can simplify this process. By inputting your loan amount, tenure, and interest rate, you can see how different rates affect your EMI and total repayment. This helps in planning and selecting the best loan option based on your financial situation.
How to lower used car loan interest rate
Lowering your used car loan interest rate can significantly reduce the overall cost of your vehicle purchase. Here are some effective strategies to achieve this:
- Improve your credit score: A higher credit score often qualifies you for better interest rates. Before applying for a loan, check your credit report and address any issues to boost your score.
- Compare lenders: Different lenders offer varying rates. This comparison can help you find the most competitive rate available.
- Negotiate terms: Don’t hesitate to negotiate with lenders. If you have a good credit score or a strong financial background, use it as leverage to secure a lower rate.
- Consider a larger down payment: Putting more money down reduces the loan amount and, consequently, the interest you’ll pay. A larger down payment might also help you negotiate a better rate.
- Opt for shorter loan tenure: While it increases your monthly EMI, a shorter loan tenure often comes with a lower interest rate and reduces the total interest paid over the loan’s life.
By leveraging these strategies and using a used car loan EMI calculator to evaluate your options, you can effectively lower your old car loan interest rate and save money.
How to apply for used car loan
Frequently asked questions
The processing fee for a Bajaj Finserv Used Car Loan can go up to 2.95% of the loan amount. This is inclusive of applicable taxes.
There is a fee up to 4.72% (inclusive of applicable taxes) on the part-payment amount paid. However, if you opt for a Flexi Loan, you can part-prepay as per your convenience without an additional charge.
Bounce charge is the fee that is charged when an EMI payment is not made on time or cannot be completed due to insufficient balance.
We charge Rs. 1,500 per bounce.
“Bounce charges” shall mean charges for non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.
Delay in payment of instalment(s) shall attract penal charge up to Rs. 25 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.
Bajaj Finserv Used Car Loan offers a competitive interest rate from 9.50% to 22% p.a.
Bajaj Finance offers used car loans at an interest rate starting at 9.50% p.a.
If you have surplus funds, you can foreclose your loan in advance and become debt-free early. However, when you are foreclosing your ongoing used car loan, you have to pay additional foreclosure charges.
Your EMI amount is influenced by factors such as principal loan amount, interest rate and tenure. Used car loan EMI is calculated using the below-mentioned formula:
EMI = P x R x (1+R)^N / [(1+R)^N-1], where P is the principal, R is the rate of interest, and N is the tenure.
When you opt for a Bajaj Finserv Used Car Loan, you can choose from a range of three unique variants – Term Loan, Flexi Term Loan and Flexi Hybrid Loan. If you choose the Term Loan variant, you have to pay additional charges every time you part-prepay your loan. However, if you have selected either of the Flexi Loan variants, you can part-prepay your used car loan as many times as you can at no additional cost.