Regarding car loan


how much amount I do have maintain to buy second handed cars


hello muje na maruti suzuki ertiga zdi lena he to me down payment 3,00,000 bharuga to fir muje baki sab ke month ke liye kitna money dena hoga monthly monthly


The loan offered for the purchase of second hand cars usually ranges between 60% and 75% of the on road price of the vehicle. Once the buyer has shortlisted the car, the bank or NBFC sends its valuation expert to evaluate the present on road value of the vehicle. The loan amount will be sanctioned based on this valuation.

For example if you are buying a Maruti Swift 2011 model valued at Rs 5 Lakhs, you may get about Rs 3.75 Lakhs, or 75% of the car value as estimated by the bank expert as loan amount. If the same car is a 2009 model, the loan amount could well be reduced to 60% or a maximum of Rs 2.5 to 2.75 Lakhs. Once the bank’s valuation expert determines the price of the car, the bank takes a final call on the amount of loan.



The loans offered for pre-owned cars differ slightly from those offered for new cars. The basic difference between new Car Loans and Used Car Loans is that the age of the car and its model play a key role in determining the financial intricacies of the loan. So, you might have to make a higher down-payment.

Interest rates offered on Used Car Loans are usually around 3-4% higher than those of new Car Loans. The loan offered for the purchase of a second-hand car also ranges from 60% to 80% of the value of the vehicle. If the car model doesn’t exist anymore or has been phased out by the manufacturing company, then your chances of landing a loan substantially reduce. This is why you might have to pay more.

In general, the age of the vehicle, as well as the loan tenure, should not exceed seven years. Check these blog posts for more information - and

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BB Expert


Hi Gautam,

The EMI of your Car Loan will depend on the interest rate of the loan, tenure of the loan and the loan amount. Suppose the loan amount is Rs. 8 lakhs, the interest rate is 9% and the tenure of the loan is 4 years, your EMI will be Rs. 19,900.

You can pay more than the minimum down payment to avail a Car Loan. The down payment amount specified by the bank or lender is only the minimum amount that a borrower must pay from his end.

If you are in a position to pay a higher down payment, then by all means go for it. This will help you reduce the amount of Car Loan you need to apply for. It will also help you pay off the loan faster, which means you will pay less interest to the bank.

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BB Expert


A Car Loan is basically the same as a personal loan. Which allows you to pay for your vehicle in monthly installments instead of paying the full payment in one go. Before applying for New car loan, you have to make sure you are financially stable to be able to make your car loan monthly payments to the bank. Normally, you will have a higher chance of getting approved for a car loan if you have a good credit score.