You have finally found your perfect car. It is spacious, has all the features you need and is available for a good price. Now the next question is: how to pay for the car?
Paying the full amount upfront is one option. Financing can be another, especially if you’d prefer to keep some savings available and spread the purchase cost across monthly payments.
With Spinny, you can access the best car financing options based on our network of financing partners while searching for your car. You can also check your eligibility and calculate your EMIs while making your decision on the car.
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How Does a Used Car Loan Through Spinny Work?
A used car loan lets you borrow an approved amount towards your car purchase and repay it over an agreed period. Your monthly payment, called an Equated Monthly Instalment or EMI, includes repayment of the borrowed amount and interest.
In other words, if you decide upon a car of ₹6 lakh and pay an upfront of ₹2 lakh, upon approval, a loan of ₹4 lakh would cover the remaining purchase price. The EMI will depend on the rate of interest and the time allowed for repayment, as offered by the lender.
With Spinny, you can explore financing options through our partner institutions. Our finance team helps you understand the available options, while the lending partner assesses your application and makes the final approval decision.
Flexible Financing Starts with Your Down Payment
The amount you contribute towards funding the vehicle from your own pocket is known as the down payment. This figure is crucial when determining the repayment schedule with which you would be comfortable.
Through Spinny Finance, eligible buyers may be able to finance up to 100% of the car’s price. This depends on the finance partner, your credit profile, the selected car and other lending criteria. Full funding is an option for qualifying applications, rather than an automatic offer for every buyer.
If you want to make a down payment, it will help reduce the amount of loan that you will have to borrow. A smaller loan means smaller monthly payments and less interest.
Choose a down payment that reduces your borrowing while leaving enough savings for other needs.
Choose a Repayment Period That Fits Your Month
The tenure of the loan or repayment period determines the duration for which you will be paying your EMIs. The financing terms with Spinny can be as long as seven years, depending on your lender and the age of your car. It is necessary to confirm the tenure for your vehicle model at the time of application.
A longer tenure spreads repayment across more months, usually reducing the monthly EMI. However, at the same interest rate, it also increases the total interest paid. A shorter tenure generally does the reverse: higher monthly payments, but a lower overall interest cost.
Before deciding, ensure that you assess how the EMI fits alongside your other expenditures, including rent, household expenditure, existing loan repayments and savings. Don’t forget to take into account the expenses for fuel, insurance and maintenance of the vehicle as well.
Understand Your Interest Rate and Loan Costs
Your loan proposal is individualised. The financial companies we work with review your credit score and income profile to set your interest rate. Eligibility requirements also include previous credit history and banking experiences, as well as information on whether you own an apartment.
Your approved rate is the one to use when planning your payments.
Make sure to consider not only the interest rates while looking at the offer made. Different lenders may demand their own processing fees, fees for documentation, and other payment types. Inquire about early repayment and closing the loan ahead of schedule.
Review the loan amount, interest rate, EMI, tenure and fees together before signing.
Use Spinny’s EMI Calculator Before You Decide
The EMI calculator for used car loans allows you to predict the monthly instalments based on the amount of money you borrow, the rate of interest and the tenure of the loan. It also allows you to try out different combinations of these variables in order to arrive at a decision on how much money to borrow.
Here’s an illustrative comparison for a ₹4 lakh loan at an assumed annual interest rate of 13%, calculated on a monthly reducing balance:
| Repayment period | Approximate monthly EMI | Approximate total interest |
| 3 years | ₹13,478 | ₹85,193 |
| 4 years | ₹10,731 | ₹1,15,088 |
| 5 years | ₹9,101 | ₹1,46,074 |
These numbers are merely examples and do not represent a loan offer. They do not take into account fees and other terms and conditions. The schedule of your repayments depends on how the lender has chosen to offer the loan.
Also Read: Car Loan EMI Calculator
Keep Your Documents Ready
Commonly requested documents for financing through Spinny include:
- Income proof, such as salary slips or income tax returns
- Six months of bank statements
- Address proof
- PAN card
- Aadhaar card
You can upload these documents as part of the process of availing the loan. Make sure that the documents are clear, up to date and in agreement with what you’ve stated in your application. Your finance partner may ask you for more documents during the verification process if needed.
How to Buy a Used Car with Spinny Financing
1. Find a Car That Suits Your Life
Browse cars on Spinny and shortlist options based on your budget and everyday needs. Consider the space, transmission, fuel type and features that matter to you. A test drive can help you decide whether the car feels right.
2. Check Your Loan Eligibility
Our online eligibility check can help you get insights about financing possibilities for your needs. Note that the eligibility check does not impact your credit score. Thus, it will help you understand your financing options before final approval by your financing partner.
3. Review Your Financing Options
Work through the available down payment and tenure choices with our finance team. Compare the EMI, interest rate, fees and total repayment before selecting an offer. If you have a preferred bank, let our team know when applying so we can discuss your request.
4. Submit Documents and Complete Verification
Please submit the required documentation as well as other information we may ask for. After that, the lender will review your application. The time needed for approval depends on document verification and the lender’s policies.
5. Complete the Loan Formalities and Purchase
Once approved, review and sign the loan agreement and complete the required disbursal formalities. Coordinate with our team to finish the purchase and arrange delivery. Keep a copy of your repayment schedule so you know when your EMIs begin.
Also Read: Used Car Loan: Complete Guide to Financing a Pre-Owned Car in India
Financing Comes Alongside the Spinny Buying Experience
A comfortable EMI is one part of choosing a used car. Confidence in the vehicle matters just as much.
Spinny Assured cars undergo our 200-point inspection and come with fixed price assurance. You can assess the car and plan its financing with the purchase price clearly in view.
When you buy a Spinny Assured vehicle, it is provided with a 5-day money-back guarantee (subject to certain terms). Does your car require financing? Please ask our team how returning the car relates to your loan process before you make the purchase.
Find Your Car and Plan Your Payments
Start by browsing cars on Spinny, checking your loan eligibility and estimating your EMI. We’ll help you explore the available financing options so you can choose your car with a clear understanding of the payments ahead.
Also Read: Used Car Loans: Everything You Must Know
FAQs About Buying a Used Car with Spinny Loans
Q. Can I buy a car through Spinny with zero down payment?
Eligible buyers may receive financing for up to 100% of the car’s price. Availability depends on your credit profile, the selected vehicle and the finance partner’s lending criteria.
Q. Does checking loan eligibility on Spinny affect my credit score?
Our initial online eligibility check does not affect your credit score. Final loan approval is a separate step and remains subject to the lending partner’s assessment.
Q. Can self-employed buyers apply for financing through Spinny?
Yes. Self-employed buyers can apply, subject to the lender’s eligibility requirements. Income tax returns, bank statements and additional financial documents may be needed to assess income and repayment capacity.
Q. What is the maximum repayment period available?
Financing can extend up to seven years, depending on the lender and the car’s age. Confirm the available tenure for your selected car during the application.
Q. Will every buyer get the same interest rate?
No. Your rate depends on factors such as your credit score and income profile. Review your personalised offer to understand the rate applicable to your loan.
Q. Can I request financing from my preferred bank?
Yes, you can share your preferred bank with our team when applying. We can discuss your request and the available arrangements, with approval subject to the bank’s requirements.
Q. Can I repay my used car loan early?
Early repayment depends on the lender’s policy. Check whether part-payments or full loan closure are permitted, along with any applicable charges and conditions, before accepting the offer.
Q. What happens to my loan if I return the car within five days?
For a return accepted under Spinny’s five-day money-back guarantee, the used car loan is cancelled, and your down payment is refunded. Check the applicable return terms and coordinate the process with our team.
