Used-car loan traps: How to reduce borrowing risks, keep EMIs manageable
Last Update Date: 05-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said a 36 to 48 month tenure can balance cash flow with the car's remaining life, suggested a 20–30% down payment, and said total vehicle costs should stay within 15–20% of net monthly income.
More of Abhishek's views on debt and loans
This article looks at the growth of used-car loans in India and what borrowers should weigh before taking one. It covers higher interest rates, conservative loan-to-value ratios, the effect of a car's age on tenure, down payment choices, overall debt limits and comparing the full cost across lenders.
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Used-car loan traps: How to reduce borrowing risks, keep EMIs manageable