Used Car EMI Loan Calculator

A Pre-Owned Car Loan or Used Car Loan refers to a loan used for buying a second-hand car, while a normal Car Loan is availed for purchasing a new car. It is important to note that the interest rates for both loans might differ. Used Car Loans often carry higher rates than normal Car Loans.

The calculation involves the following formula:

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

P = Principal loan amount

R = Rate of interest

N = Number of monthly instalments

By inputting these values into the formula, one can compute the exact EMI amount to be paid each month.

It depends on various factors such as your eligibility and the policies of the lender. Typically, lenders may offer up to 80% of the value as a second hand car loan. It means that if the car is valued at a certain amount, you can potentially secure the financing for up to 80% of that value. However, the exact percentage may vary based on the circumstances and the lender's assessment criteria.

The average tenure for a pre-owned car loan typically spans around 7 years. This duration allows borrowers a reasonable timeframe to repay the loan amount in manageable monthly instalments while considering the depreciating value of the used vehicle. However, the actual loan tenure may vary depending on factors such as the borrower's financial situation, the terms and conditions of the lender and the specific characteristics of the car being financed.

Buying a second hand car on loan can be advantageous for several reasons. It allows individuals to afford a higher-quality vehicle or a model that may have been out of their budget otherwise. Additionally, spreading the cost of the purchase over a loan tenure makes it more manageable, especially for those with limited upfront funds.

Yes, you can adjust the loan tenure up to 10 years (120 months) using the slider in the EMI Calculator.

While the interest rate for new Car Loans starts from 9.10%*  based on factors like CIBIL score and car model, the interest rate for used Car Loans begins at 11.25%*, considering similar criteria. This higher rate is often attributed to the increased risk associated with financing older vehicles.