What is the repayment process when you buy a second-hand car with an EMI option?

The most convenient and economical method is to purchase a used car on EMI, which means to repay a used car loan via small monthly instalments within the specified tenure. When you buy a second-hand car with an EMI option, the EMI amount includes the principal loan amount and the applicable interest amount on loan.

What are the available used car loan EMI options?

You can select from the multiple used car loan EMI options for a smooth repayment experience. These include –Fixed EMI plan – When you buy an old car on EMI, the monthly EMI value remains the same. This is suitable if your monthly income is consistent. Flexi EMI plan – When you buy an old car on EMI, you can customize the monthly EMIs. This is suitable if your monthly income is likely to increase in the future.Based on your used car loan eligibility and capacity, you can determine the best EMI value with the help of an online used car EMI calculator and then purchase your pre-owned car with the used car loan EMI option that best suits your needs.

Can you prepay your used car loan?

Yes, when you buy a second-hand car on EMI with Tata Capital, you can prepay the loan, given you prepay it fully. When you prepay your used car loan, you will have to bear the prepayment charges. Before you purchase your used car on loan, make sure to check with your lender about the used car loan charges.

Can I reduce or change the EMI when I buy a second-hand car on installment?

When you buy a 2nd hand car on EMI, you cannot change your EMI after we have sanctioned your loan. After loan approval, your EMI is fixed for the loan tenure. However, you can use an online used car EMI calculator and arrive at a comfortable EMI by choosing a longer tenure. Some lenders also offer flexible EMI plans to suit your budgetary needs. So, before you purchase a used car on EMI, make sure to check the EMI plans your lender offers.

How to manage your EMIs on a used car loan?

Before buying a second-hand car on EMI, make sure that you understand the different ways of EMI management, as mentioned below –Calculate your monthly EMIs in advance with the help of an online second-hand car loan EMI calculator. Use smartphone applications to receive timely notifications for the EMI payment date. Pay your monthly EMI on the very first day of every month. Ask your bank to transfer the said EMI amount automatically every month on your behalf.

Which of the used car loan EMI options is advisable, the Fixed EMI plan or Flexi EMI plan?

You can select from two repayment plans based on your requirements. These are as follows -Fixed EMI plan – When you buy a 2nd hand car on EMI under the fixed plan, the principal amount and the interest remain the same throughout the loan tenure. As a result, your EMI remains unchanged. This plan is suitable if your monthly income is consistent and unlikely to change in the future. Flexi EMI plan – When you choose the Flexi EMI plan to pay your used car loan EMI, you can customise your monthly EMIs. The EMI amount is low initially and gradually increases with tenure. This plan is suitable if you expect your income to rise in the future.

Flexible EMI Options for Used Car Loans

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What is a Used car loan EMI?

EMI is a short form for Equal Monthly Instalments. When you take a used car loan, you need to pay a certain amount every month towards the repayment over a fixed tenure. This is called your EMI and includes the principal amount as well as the interest. This helps you distribute the amount over a period that you are comfortable with to repay your loan conveniently.

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The 3 How’s of deciding the right Used car loan EMI

Before applying for a used car loan, you must consider these questions carefully-

How soon do you want to pay off your used car loan?
How much can you afford to pay in a month?
How much of an interest rate are you comfortable with?

Proceed with your used car loan application only after you are comfortable with the answers to these 3 hows. This will help you select a plan that fits your requirements.

How to Choose the Right Used Car Loan EMI Option?

Selecting the right EMI option is crucial to ensure you can repay the loan conveniently. Before you purchase a used car with an EMI option, you must answer the following questions to arrive at a suitable EMI value –

How soon do you want to pay off your used car loan?

Do you want to repay the loan as soon as possible or repay it slowly over the years? If you wish to repay your loan sooner and have the means to do so, you can pay a higher down payment for a shorter loan tenure.

How much can you afford to pay in a month?

If you choose a short tenure, you'll have to pay a higher monthly EMI amount. If you have a high income and a stable source, you can buy a used car on EMI by paying a higher EMI amount. To understand how much EMI you can afford every month, consider your used car loan EMI amount and other monthly expenses and weigh them against your monthly income.

How much interest are you comfortable with?

For a lower interest on your used car loan, opt for a short tenure because a longer tenure means higher interest outgo. However, a shorter tenure would mean higher EMIs every month. Depending on your current income and future expectations (of a raise), you can answer this question.

Which Used Car Loan EMI Option is Suitable for You?

Selecting the right Used Car Loan EMI option can seem overwhelming and even challenging. But with our pre-designed EMI plans, you can have a budget-friendly and comfortable EMI repayment experience.

Fixed EMI

With this repayment option, you can choose the Used Car Loan EMI Plan that suits your cash flow. Under Fixed EMI, the interest and principal component remain the same during the entire loan tenure.

EMI amount remains unchanged for the entire used car loan period
Ideal if you have a consistent income

Structured EMI

Tata Capital's Structured used car loan EMI option allows you to select a repayment method that suits you best.

Customised EMI options as per your requirement
Ideal if you expect your income to increase at regular intervals

How much EMI do you need to pay when you buy a used car on EMI?

When you buy a used car with an EMI option, your EMI will depend on the loan principal, the interest applicable, and the loan tenure. With Tata Capital's flexible EMI, second-hand car purchase has never been easier.

You can use an online used car EMI calculator to arrive at a suitable EMI value.

What are the Modes of Paying Used Car Loan EMI?

Repaying a used car loan with Tata Capital is very simple. You can make the EMI payments in the following two modes –

Online Payment

Buy a second-hand car on EMI and make payments online, through our website, from your desktop or mobile, anytime and anywhere.

Drop a Cheque

You can drop a cheque at your nearest branch at your convenience.

How can you repay the Used Car Loan?

You can repay the loan through ECS, Direct debit, and post-dated cheques drawn on "Tata Capital Limited".

You can also prepay the loan if you are closing it fully. However, you will have to bear a prepayment charge. For more details, view our service charges.