Axis Bank Used Car Loan

Axis Bank is a leading private sector bank known for its customer-focused banking solutions and seamless loan services. With a strong nationwide presence, it offers innovative financial products tailored to diverse customer requirements.

In the evolving automobile market, used car loans offer a cost-effective way to upgrade or buy a first vehicle. Axis Bank offers a used car loan facility to help customers purchase pre-owned cars. Axis Bank Used Car Loan offers up to 100% financing, competitive interest rates, and flexible repayment options. 

With quick approvals and streamlined digital application process, the bank ensures a smooth experience. Whether opting for personalised assistance or an online application, Axis Bank facilitates the purchase of a pre-owned car with ease and affordability.

Axis Bank offers competitive interest rates on pre-owned car loans. It provides up to 100% financing for your chosen vehicle. Below are the interest rates based on loan tenure and the applicable processing fees:

To calculate the EMI for a used car loan, you can use the following formula:

 

EMI=[PxRx(1+R)^N]/[(1+R)^N-1]

Where:

• P = Principal loan amount

• r = Monthly interest rate 

• n = Loan tenure in months

You can use Axis Bank's online EMI calculator. Here's how you can use it:

1. Visit the Axis Bank website and scroll to the car loan section

2. Look for the car loan EMI calculator tool

3. Enter loan details, like the loan amount, tenure, and interest rate

4. Once you enter these details, the tool will instantly generate the EMI amount and the amortisation schedule

When you take a used car loan from Axis Bank, there are processing fees and additional charges that you need to be aware of. These costs include processing fees based on the loan tenure, penalties for missed payments, and other service charges. Below is a list of applicable charges:

Below are key features of Axis Bank's used car loan. You need to review these before applying. 

• High Loan Coverage: Secure up to 100% financing on the car’s value without a significant upfront cost

• Personalised Assistance: Receive expert guidance throughout the loan application process

• Flexible Repayment Options: Select a repayment plan that aligns with your financial requirements

• Minimal Documentation: Self-employed individuals and those with variable income can apply with limited paperwork

• Car Purchase Support: Access trusted dealerships and verified sellers for a seamless buying experience

• Fast and Efficient Processing: Apply, submit documents, and track your loan status online with ease

To apply for a used car loan from Axis Bank, you need to meet certain eligibility requirements based on your employment type.

For Salaried Individuals:

• Age: 21 to 60 years

• Minimum annual income: ₹2.4 Lakhs to ₹3.5 Lakhs

• Must have at least 1 year of continuous employment

For Self-employed Individuals:

• Age: 21 to 65 years

• Minimum annual income: ₹2 Lakhs to ₹3.5 Lakhs

• Must have been in the same business for at least 2 years

For Self-employed Non-Individuals:

• Minimum annual business income: ₹2.5 Lakhs to ₹3.5 Lakhs

• Must have been running the business for at least 2 years

• Must provide the latest 2 years’ ITRs and audited financial statements

To apply for a used car loan from Axis Bank, you need to submit certain documents based on your employment type. Below are the key documents required:

For Salaried Individuals:

• Application Form and KYC Documents

• Income Proof: Latest 2 salary slips & Form 16

• Bank Statement: Last 3 months

• Age Proof: PAN Card, Driving License, Passport, or Birth Certificate

• Sign Verification: PAN Card, Passport, or Banker’s Verification

• Employment Proof: Appointment Letter, ITR, or Form 16

For Self-Employed Individuals:

• Application Form and KYC Documents

• Income Proof: Latest ITR

• Bank Statement: Last 3 months

• Age Proof: PAN Card, Driving License, Passport, or Birth Certificate

• Sign Verification: PAN Card, Passport, or Banker’s Verification

• Business Continuity Proof: Sales Tax, VAT, or Shop Registration

For Partnership Firms/Societies/Trusts:

• Application Form and KYC Documents

• Income Proof: Audited Balance Sheet, P&L Statement, and last 2 years ITR

• Bank Statement: Last 3 months

• Age Proof: PAN Card or Authority Letter by Partners

• Sign Verification: Authority Letter & Board Resolution

• Business Continuity Proof: Sales Tax, VAT, or Shop Registration

For Private/Limited Companies:

• Application Form and KYC Documents

• Income Proof: Audited Balance Sheet, P&L Statement, and last 2 years ITR

• Bank Statement: Last 3 months

• Age Proof: PAN Card or Board Resolution

• Sign Verification: List of Directors & Shareholding Pattern

• Business Continuity Proof: Certificate of Commencement of Business

Several factors influence the used car loan amount from Axis Bank. Understanding these aspects can help in better financial planning.

• Interest Rate

The rate applied to the loan amount determines the total borrowing cost.

• Vehicle Type

Older vehicles or those with higher mileage may attract higher interest rates. The car’s market value also affects the loan offer.

• Credit Score

A higher credit score improves eligibility for a better interest rate and a higher loan amount. A score above 750 is preferable for securing favourable terms.

• Loan Tenure

Longer tenures may lower monthly EMIs but increase the total interest paid, whereas shorter tenures result in higher EMIs but reduce overall costs.

• Down Payment

Paying a larger amount upfront decreases the loan amount and EMI, making repayment more manageable.

Axis Bank’s Used Car Loan provides a structured and cost-effective way to purchase a pre-owned vehicle. With up to 100% financing, competitive interest rates, and flexible repayment terms, the bank facilitates smooth borrowing. The streamlined approval system, minimal documentation, and digital services simplify loan applications. 

Whether upgrading your vehicle or purchasing one, Axis Bank offers a reliable and customer-focused financing solution. By understanding the loan’s features, eligibility criteria, and key considerations, you can make an informed choice and secure your desired vehicle with ease.