• Custom Free
     

    Custom quote

  • Used Car Loan

    Loading your search...
  • Used cars loans make it possible for you to own a second-hand car at affordable interest rates that range between 8.70% p.a. and around 16.80% p.a. You can also enjoy flexible repayment tenures up to 7 years and avail funding up to 90%-100% of the car’s valuation. Salaried individuals as well as self-employed professionals can apply for used car loans.
    More
    We found 15 Used Car Loan
    Bank Name
    Interest Rate Range/Lease rental range
    Processing Fee Range
    Loan Amount
    Tenure Range
    PA PL OTP
    9.10% - 15.50% Fixed
    Up to ₹5,310 One time fee
    75K Min
    1-7 Years
    100% PAPERLESS APPROVAL
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    9.10% - 13.35% Fixed
    Up to ₹ 5,000 One time fee
    1L Min
    1-7 Years
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.8K - 58.6K LEASE RENTAL RANGE/MTH
    No Processing fee
    - Flexi-Lease offer
    1-4 Years
    Car Lease
    What you'll love
    Documents
    Perks
    Think about
    Fees and Penalties
    Eligibility Criteria
    9.05% - 11.30% Fixed
    ₹3,500 - ₹5,500
    1L Min
    Up to 8 years
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.15% Fixed
    1,500 to ₹2,500 One time fee
    Up to 100% (ex-showroom price)
    Up to 7 years
    What you'll love
    Documents
    Perks
    Think about
    Good to Know
    Eligibility Criteria
    8.80% - 11.05% Floating
    0.50% (Max. ₹8696)
    Up to 3 times monthly income/salary
    Up to 7 years
    What you'll love
    Documents
    Perks
    Think about
    Eligibility Criteria
    9.50% Floating
    ₹500
    Up to 100 L
    Up to 7 years
    Documents
    Perks
    Think about
    Eligibility Criteria
    9.10% - 11.10% Fixed
    As applicable
    Up to 36 months salary/pension
    Up to 7 years
    What you'll love
    Documents
    Perks
    Think about
    Eligibility Criteria
    9.00% - 9.65% Floating
    0.25% (₹1,000 - ₹5,000)
    Up to 90% of cars value
    Up to 7 years
    What you'll love
    Documents
    Perks
    Think about
    Eligibility Criteria
    8.95% Floating
    ₹500 to ₹20 L
    75L Max
    Up to 7 years
    What you'll love
    Documents
    Perks
    Think about
    Eligibility Criteria
    9.65% Fixed
    0.23% (Max. ₹10,236) One time fee
    Up to 200 L
    Up to 7 years
    What you'll love
    Documents
    Perks
    Think about
    Eligibility Criteria
    9.00% - 9.70% Floating
    ₹1,000 - ₹1,500 (+ GST)
    Up to 48 times monthly income
    Up to 7 years
    What you'll love
    Documents
    Perks
    Think about
    Eligibility Criteria

    Top Lenders Offering Pre-Owned Car Loans

    Name of the Bank Interest Rate (p.a.) Processing Fees Maximum Loan Amount Repayment Period
    ICICI Bank 14.25% 2% of the loan amount or Rs.15,000 Up to 80% of the valuation of the car Up to 5 years
    State Bank of India 11% to 12.00% Rs.1,000 to Rs.1,500 Up to Rs.10 lakh Up to 5 years
    Axis Bank 14.80% to 16.80% 1% of the loan amount or Rs.6,000 Up to 85% for the car’s valuation Up to 5 years
    Tata Capital 15% onwards
    • Refinance: 1.50% of loan amount or Rs.6,000
    • Repurchase: 1.75% of loan amount or Rs.5,000
    Up to Rs.50 lakh Up to 5 years
    Bajaj FinServ Contact Bajaj FinServ Up to 4% of the loan amount (inclusive of taxes) Up to 90% of car’s valuation or Rs.20 lakh Up to 5 years
    HDFC Bank 13.75% to 16% 1.50% or loan amount (min. Rs.2,500; max. Rs.5,000) Up to Rs.2.5 crore Up to 7 years
    Mahindra Finance Contact Mahindra Finance Contact Mahindra Finance Depends on the age of the vehicle Up to 5 years
    United Bank of India

    RLLR

    • Salaried: 8.70%
    • Non-Salaried: 8.85%
    0.59% of loan amount (min. Rs.600; max. Rs.11,800) Up to 75% of car’s valuation or Rs.40 lakh Up to 5 years
    Indiabulls Dhani 13.99% onwards 3% of the loan amount onwards Up to Rs.15 lakh Up to 3 years
    Used car loan
    Used Car Loan

    Used Car Loans – Features and Benefits

    There are several benefits of buying a pre-owned car and applying for a used car loan:

    • The loan amount you require will be lesser because the cost of the car will be lower.
    • The repayment tenure will be lower due to the lower loan amount. This will help you save on interest payments.
    • The repayment tenure can be as long as a new car loan (depending on the bank). You can easily get a loan tenure of up to 5 years, or in some cases, even 7 years.
    • You can get up to 90%, or even 100% financing for your car.
    • The application process is simple, and in most cases, similar to that of applying for a new car loan.

    Things to Keep in Mind While Applying for a Used Car Loan

    Here are a few pointers to keep in mind before you apply for a pre-owned car loan:

    • Used car loans usually come with higher interest rates than new car loans.
    • The age of the car will be taken into consideration before approving your application. Usually financial institutions insist that the age of the car should not be more than 36 months.
    • The cost of car insurance will not be included in your loan amount. You may need to take a higher loan amount to cover the cost.

    Eligibility Criteria for availing Used Car Loans

    To avail pre-owned car finance, you must fulfill the below-given car loan eligibility criteria:

    Particulars Salaried Applicants Businessmen/Self-employed Applicants
    Age of the Applicant Between 21 years and 65 years Between 25 years and 65 years
    Minimum Income Rs.15,000 per month Net profit of Rs.1.5 lakh p.a.
    Income Status At least 1 year of continuous employment Should have been in the same line of business for at least 3 years
    Age of the Vehicle Less than 10 years at the time of loan maturity

    Please note that the eligibility criteria may vary from lender to lender and hence, it is a good idea to check for the same with the respective lenders.

    Documents Required to avail Pre-Owned Car Finance

    Applicants of used car loans need to furnish the below-given documents:

    Application Form Filled and duly signed
    Proof of Identity Aadhar Card, Passport, Driving License, Voter’s ID, PAN Card, etc.
    Address Proof Passport, Ration Card, Driving License, Aadhar Card, Electricity Bill, LIC Policy, Voter’s ID, etc.
    Proof of Income Salary slip, Form 16, Audit sheet, Profit and Loss account, etc.
    Photograph Passport size
    Car Valuation Report

    How to Apply for Used Car Loan

    Lending institutions across the country offer online and offline methods to apply for a pre-owned car loans. Here is a brief description of both the processes.

    Easy steps to apply for a Used Car Loan Online

    1. Visit the official website of the lending institution you plan to get your loan from.
    2. Apply for the loan by entering the details requested. Usually, lenders ask for your basic contact details as well as details about the car you wish to buy.
    3. Once you apply, a customer car executive will get back to you with further instructions.
    4. Submit the documents requested for a hassle-free process.
    5. The lender will verify your documents and approve the loan, after which you can use the funds disbursed to buy the car.

    Easy steps to apply for a Used Car Loan Offline

    1. Visit the branch office of the bank or lender from which you plan to take the used car loan from.
    2. Fill in the application form by providing details about the loan you wish to get.
    3. Discuss details about the loan such as the eligibility, loan amount, car loan interest rate, etc. with a bank executive.
    4. Once you decide the details of the loan, you can submit the necessary documents requested by the lender.
    5. The loan amount will be credited to your account after the bank provides its approval.

    Tips to Make the Loan Application Process Easy

    • Do a thorough research online to find a lender that offers attractive interest rates and an easy application process. Many banks these days need minimal or no documentation for approval.
    • Choose the online application process to save time on visiting the bank branch and waiting in the queue.
    • Use a Car Loan EMI calculator to estimate the EMI amount you will have to pay. This will help you decide if you have to reduce the loan amount, increase the loan tenure, or make any other changes to make the EMI affordable. The online EMI calculator makes it easy for you to calculate, without the help of a bank executive.
    • Keep your documents ready when you have to make submissions. Any delay in submission of even one important document will lead to further delay.
    • Pick a well-established lender so that the application and approval processes are quick.

    Important things to do when buying a used car

    Some of the important things that you must complete when buying a new car are mentioned below:

    • Check the car and papers thoroughly: It is vital that you check the car thoroughly. You can take the help of a mechanic to inspect the car. In case there are any issues, you can negotiate on the price or ask the owner to repair the car before purchase. You can also drive the car at a place where there is less traffic to check for any vibrations as well.
    • It is vital that all relevant documents such as the registration certificate and insurance copy are checked thoroughly. Check if the chassis number and engine number is the same as the ones mentioned on the registration copy. It is also important to check the insurance papers carefully to see if the car has had any accidents.

    • Research and vehicle history: It is important that you do thorough research about the car before buying it. Various details of the car can be found online. It is important to check the vehicle history as well. This will help in checking if the car has had any accidents. You can also check the service history to see if the car has undergone any major repairs.
    • Registration Certificate transfer: Once you have purchased the car, ensure that the Registration Certificate (RC) is transferred to your name. The form for the transfer of RC must be signed by you as well the previous owner. In case the car is registered at a different state, a No Objection Certificate (NOC) is required. A NOC is also required if the previous owner has purchased the car on finance.
    • Transfer of insurance: It is vital that the car has valid insurance. In case you buy the car, the insurance must be transferred to your name immediately. The insurance policy becomes void if it’s in the previous owner’s name, even if the RC is in your name.
    • No Claim Bonus transfer: The insured always receives the No Claim Bonus (NCB). NCB is never provided to the insured vehicle. Only transfer of the insurance policy to your name is possible. You will not be able to transfer the NCB to your name. Therefore, you will have to pay the difference amount for the remainder of the policy period.
    • Service the car before use: It is important that the car is completely checked and serviced before initial use. Changing the required fluids, clean up, and required fixes must be completed before the first use. In case of any cracks or rust, you must get it fixed.

    Frequently Asked Questions on Used Car Loans

    Can I apply for a used car loan with a co-applicant?

    Yes, you can apply for a loan to purchase a second-hand car with a co-applicant, but this is necessary only when your income does not meet the minimum income eligibility criteria. In such instances, your spouse or a relative who resides in the same address as you can be the co-applicant.

    Do I have to make a down payment to avail a pre-owned car loan?

    Some lenders will ask you to make a down payment when you avail a used car loan. However, many lenders will offer up to 100% financing which means you do not need to make any down payment.

    Will I be charged for prepaying a used car loan?

    Yes, many lenders will charge you a penalty fee for prepaying your loan except for a few such as Indiabulls, United Bank of India, and Tata Capital who do not levy any penalty on prepayment.

    Can I avail a pre-owned car loan on my existing car?

    Yes. There are some lenders who will allow you to avail a used car loan on your existing car. One such lender is Tata Capital which will offer up to 120% of your car’s current value as cash. You can avail up to Rs.20 lakh under this facility.

    How do I repay the used car loan I availed?

    There are various ways through which you can repay your used car loan. They are direct debit, Electronic Clearing Service (ECS), and post-dated cheques (PDCs). Almost all lenders will allow repayment through any one of these ways.

    Will registration charges and insurance be included in the pre-owned car loan?

    Some loan offerings may include registration charges, but not the insurance charges. Insurance charges will need to be paid by the borrower upfront.

    Can I avail a used car loan if my credit score is low?

    Before any lender offers you a loan, they will first look at your credit history to evaluate your repayment capabilities. Most lenders will offer you a loan only when your credit score is 750 and above. So, if you feel that your credit score is low, first confirm it by checking your score on the BankBazaar website. Once you check your score, you can take corrective measures to enhance it and then apply for a loan.

    Do I have to provide collateral or security to avail pre-owned car finance?

    No, you do not have to provide any security or collateral to avail a pre-owned car loan as the vehicle itself will be considered as a security. In the event of you defaulting on your EMI payments, the lender has the right to seize your vehicle and recover the loan amount.

    Is there a restriction on the type of cars that I can purchase with the used car loan?

    You can buy any kind of car such as sedans, hatchbacks, sports utility vehicles (SUVs), etc., with used car financing. However, lenders will check for the age of the car before offering you a used car loan.

    What is the maximum repayment tenure I can opt for my used car loan?

    The maximum repayment tenure offered on pre-owned car loans is 84 months or 7 years which is offered by the State Bank of India (SBI). However, it is always recommended that you choose shorter repayment tenures because you will end up paying higher interest over the loan tenure. Shorter repayment tenures would mean higher EMIs but in the long run, it will help you cut down on the interest payable towards your car loan.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Used Car Loan Reviews

    • Kotak Car Loan
      "Late fee & cheque bounce high interest rate need to decrease"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from KOTAK Bank and the loan amount was Rs. 4L i have made a down payment of Rs. 1.25L. The rate of interest was okay and i am paying EMI 9100 with the tenure of 3 years. For cheque bounce they are charging Rs. 900 for the delay payment charges Rs. 1000. I am not getting any reminder, i have purchased car model Maruthi ECHO.
      Was this review helpful? 0
      , pondicherry
      Reviewed on Feb 18, 2020
    • Corporation Bank
      Corporation Bank Car Loan
      "Easy loan approval"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from CORPORATION Bank. The loan amount was Rs. 3L and i made down payment of Rs. 70k and the rate of interest was nominal. I have purchased a car model HYUNDAI. The documentation was good and given to the bank itself. Customer service was good, within a week i got this loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 17, 2020
    • review Car Loan
      "Worst ever bank and unprofessional support"
      0.5 0.5/5 "Unacceptable"
      Bank when need to give loan, they will commit fake things, but in reality they re very unprofessional. They are having guns at their support and charging fake charges by various medium. Never go with this bank else you are going to pay to much for nothing.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Feb 17, 2020
    • HDFC Bank Car Loan
      "Satisfied loan"
      0.5 4.0/5 "Great!"
      HDFC bank is ready to provide the full loan amount for my car loan since i have a savings account with HDFC its easy to do the repayment also. I got the loan amount of Rs. 4.5 lakhs and they have offered me a interest rate of 11%. The amount is automatically deducted from my account.
      Was this review helpful? 0
      , jaipur
      Reviewed on Feb 16, 2020
    • TVS Credit Services Car Loan
      "Easy loan approval"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan from TVS CREDIT for the past 1 month back. The loan amount was Rs. 1.30L and i have made a down payment of Rs. 1L. I have taken a used car and the card model was 2013. The service and an interest rate was good they have given 9.5%. The loan got approved by 3 days and processing fee was deducted by Rs.5K.
      Was this review helpful? 0
      , mysore
      Reviewed on Feb 14, 2020
    • Axis Bank Car Loan
      "Easy loan approval"
      0.5 4.0/5 "Great!"
      I have taken a car loan from AXIS Bank and the loan amount was Rs. 9L. Standard rate of interest and i am paying Rs. 16k with the tenure of 5 years. I have made a down payment of Rs. 2.50L and i have purchase car model Mahendra. I given all my documents to the showroom itself.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 14, 2020
    • Kotak Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan through Kotak Mahindra Bank .The process was very smooth and not yet faced any issues .The car model was 2015 and the name of the car is Maruti Suzuki Celerio .The rate of interest and the processing was not an issue. Everything is good to me so far and i am satisfied with the service .
      Was this review helpful? 1
      , jaipur
      Reviewed on Feb 13, 2020
    • Axis Bank Car Loan
      "Convenient Loan"
      0.5 5.0/5 "Blown Away!"
      Dealer from the car showroom offered me a car loan from Axis bank. Documentation process was fine and they have provided me a nominal interest rates. I have selected the duration of 5 years and i pay the EMI amount of Rs. 16000. The EMI amount is automatically deducted from my account directly.
      Was this review helpful? 0
      , new delhi
      Reviewed on Feb 13, 2020
    • Sundaram Finance Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through Sundaram finance .The car model was Maruti Suzuki Swift Dzire .The rate of interest and the processing fee was minimal.This loan was sanctioned on time without any hassles .I am paying the premium on EMI system and not having any penalty, if pay the premium on delay .
      Was this review helpful? 0
      , kochi
      Reviewed on Feb 12, 2020
    • Cholamandalam Finance Car Loan
      "Interest rate was high"
      0.5 4.0/5 "Great!"
      I have taken a car loan from CHOLAMANDALAM FINANCE. The loan amount was Rs. 5.80L initially i paid Rs. 75k now i completed this loan. I have purchased Maruti Swift Dzire and all the documents given to the executive and i received this loan within 3 days, rate of interest was high 17%.
      Was this review helpful? 1
      , kochi
      Reviewed on Feb 12, 2020
    • SBI Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I have taken car loan directly through SBI. The car model was 2019 and the name of this car was Volkswagen Vento .The rate of interest and the processing fee was very high and there was no processing fee .I have got all the details about the loan process very clearly and paying the premium on EMI basis .I have closed this loan successfully without any discrepancy.
      Was this review helpful? 2
      , kochi
      Reviewed on Feb 10, 2020
    • ICICI Bank Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through ICICI Bank.The vehicle name is Hyundai I 10 and the rate of interest and the processing fee was nominal .This loan was taken through bank directly and everything was good to me so far.I am paying the premium on EMI basis .According to my concern the process was very convenient.
      Was this review helpful? 0
      , surat
      Reviewed on Feb 08, 2020
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan through HDFC Bank directly .The vehicle name is Hyundai Verna and the rate of interest and the processing fee was medium .This loan is still active and will be closing within 9months .This loan was sanctioned immediately without any hassle. I am happy with the service.
      Was this review helpful? 0
      , indore
      Reviewed on Feb 07, 2020
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I have applied for car loan directly through HDFC bank.This loan is still active and the vehicle name is Tata Nexon.The rate of interest and the process fee was medium .The loan got sanctioned on time .The process was fine and I really got good cooperation from bank end.
      Was this review helpful? 2
      , meerut
      Reviewed on Feb 06, 2020
    • HDFC Bank Car Loan
      "Easy loan approval"
      0.5 5.0/5 "Blown Away!"
      My car loan was purchased from HDFC Bank because that time this is the only company who were ready to provide the car loan to me. I have made the down payment of Rs. 2 lakhs and the total cost of the car is Rs. 6 lakhs. . I have purchased Maruti Flair.
      Was this review helpful? 1
      , noida
      Reviewed on Feb 06, 2020
    • HDFC Bank Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan directly through HDFC Bank. The rate of interest and the processing fee was very less .I have got this loan on time without any hassle.The loan details was clearly explained by the agent and its still active and there was no drawbacks faced.
      Was this review helpful? 3
      , bangalore
      Reviewed on Feb 01, 2020
    • IndusInd Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan through INDUSIND Bank directly.The loan amount was 3.5L for the tenure of 5 years . The rate of interest and the processing fee are nominal .This loan was sanctioned on time without any difficulties. The process was smooth and quick .I am satisfied with the service so far.
      Was this review helpful? 3
      , kolkata
      Reviewed on Jan 31, 2020
    • Axis Bank Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      Based on my eligibility, they have provided me a pre-approved car loan from AXIS bank and the loan amount taken was Rs. 8L. My salary account with this bank even though they have collected all my documents. They have offered me a interest rate of 19% and the processing fee was Rs. 3000. I paid the down payment of Rs. 1.50L.
      Was this review helpful? 1
      , kochi
      Reviewed on Jan 30, 2020
    • review Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken car loan through Shriram City union finance direclty .The rate of interest was nominal and the car name was Maruti Suzuki Swift Dzire .This loan is still active and availed the loan amount of 5 lakhs for the tenure of 4 years .The loan process was clealry shared by the agent wiothout any discrepancy .
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 29, 2020
    • ICICI Bank Car Loan
      "Good loan "
      0.5 5.0/5 "Blown Away!"
      I took ICIC Bank car loan directly through Bank. Still this loan is active, the car model was 2015. I have got this car loan on exact time frame . Each details about this loan process was clearly shared by the agent. The rate of interest was nominal 10.25% and so far paying Rs.4302 as an EMI.
      Was this review helpful? 3
      , kolkata
      Reviewed on Jan 29, 2020
    Common Loader Icon
    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.