If you want to borrow an old car, there are many banks that offer loans at low interest rates. Loans are cheap at public sector banks, but the facility is only available to existing customers. Private banks also offer loans with the help of issuers. Also, private banks can lend a car inspection facility.
|Bank||Interest rate%||Processing fee||Time limit|
|Bank of Canara||7.30-9.90||0.25% of the loan amount (Rs 1,000-5,000)||5 years|
|Bank of India||7.45-8.55||1% loan amount||3 years|
|Union Bank of India||8.90-10.50||1,000||5 years|
|South Indian Bank||13.30-13.75||1% loan amount||5 years|
|State Bank of India||9.50-10.50||0.50% of loan amount||5 years|
|HDFC||13.75-16.00||1% loan amount||7 years|
|The Federal Bank||13.80||1,500-2,500||5 years|
|Axis Bank||14.45-16.45||1% loan amount||5 years|
For older cars, when we go for a loan, the most important is the debt to ratio ratio, which depends on how much you borrow and for how long. If banks are offering loans at cheaper rates but your debt is less than the ratio, you won’t get much.
SBI Reduces Home Loan Interest Rates, Know Your Savings
Suppose you want a loan of 5 lakh rupees for an old car, but if your debt is 60% to the ratio value, you only get 3 lakh rupees. Lending an old car is always a risky business for banks. Banks do not trust third party quality checks.