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.
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 for every EMI missed. Any delay in payment of monthly instalment/ EMI shall attract penal interest at the rate of 3.5% per month on the monthly instalment/ EMI outstanding, from the date of default until the receipt of the monthly instalment/ EMI.
Bajaj Finserv Used Car Loan offers a competitive interest rate from 10% to 19% p.a.
Bajaj Finance offers used car loans at an interest rate starting at 10% p.a.
The interest rate for a used car loan is determined by the lender basis your credit profile and CIBIL Score. While you cannot reduce the interest rate, you can take measures to ensure that you get the lowest possible interest rate. To get the best interest rate from Bajaj Finance you need to meet our basic eligibility criteria like a minimum CIBIL Score of 720 or higher. Alternatively, you can also choose a shorter tenure to save on the interest amount you pay.
There are multiple factors that affect your used car interest rate. One such important factor is your credit score. If you have a good CIBIL Score, you can get a loan at a competitive interest rate. You can also save on interest by opting for a shorter tenure. You can also use our used car loan EMI calculator to determine your monthly EMIs.
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.
