Bank of Maharashtra Used Car Loan
Bank of Maharashtra offers a used car loan through its Mahabank Vehicle Loan Scheme, financing up to Rs.50 lakh for cars up to three years old. New borrowers pay a Repo Linked Lending Rate (RLLR)-based interest rate that varies by CIBIL score, and loans are repayable over up to 60 months.
Headquartered in Pune, the bank has grown into a tech-savvy, customer centric financial institution offering diverse banking solutions to its customers across various states in India.
With more than half of Maharashtra's population being in the rural areas, the bank has introduced various schemes and financial instruments catering specifically to the agriculture based rural areas. The bank also targets other urban customers with a gamut of banking products ranging from loans, credit cards, deposits, investments, etc., Bank of Maharashtra offers vehicle loans for both new and used cars with the Maha Bank Vehicle Loan Scheme available specifically for the purchase of second hand cars.
Features of a Bank of Maharashtra Used Car Loan
- Eligibility: Available to salaried individuals, entrepreneurs, and agriculturists for purchasing second-hand cars (up to 3 years old).
- Loan Amount: Minimum Rs.2 lakh and maximum Rs.50 lakh, funded up to 70% of the car's market value or 100% of its Insured Declared Value (IDV), whichever is lower.
- Margin: Minimum 30% of the vehicle's cost to be financed by the borrower.
- Tenure: Flexible repayment up to 60 months
- Processing Fee: 0.50% of the loan amount (minimum Rs.500).
- Security:
- Hypothecation of the vehicle
- Updated insurance and RTO records with bank clause
- Guarantor: Not mandatory
- Income Cap: Total deductions, including EMI, must not exceed 65% of gross monthly income
- Eligible Vehicle: The car must not be more than three years old and must not have run more than 1,50,000 kilometres to qualify for financing.
- Purchase Source: The used car must be bought from a certified pre-owned car platform, such as Maruti True Value, Tata Assured, or Toyota U Trust, among others recognised by the bank.
Eligibility criteria for a Bank of Maharashtra Used Car Loan
Applicants should be 18 years old or above to qualify for a Bank of Maharashtra used car loan.
Permanent salaried individuals working in Central and State Government organizations, corporate salary account holders, PSU employees with a minimum employment experience of two years and 1 year in their current company are eligible to apply for a used car loan. The applicant should also have maintained a 1 year relationship with Bank of Maharashtra to apply for the used car loan.
Businessmen and self-employed entrepreneurs with a regular source of income as shown in their last two years IT returns are eligible to apply for a used car loan from Bank of Maharashtra.
Agriculturists having a minimum of 5 acres of land engaged in production oriented activities or a minimum land holding of 5 acres of irrigated land and easily accessible liquid assets qualify for a Bank of Maharashtra used car loan.
Government and PSU pensioners with a minimum monthly pension of Rs.25,000 are also eligible to apply for a Bank of Maharashtra used car loan.
Documents required
Salaried Employees
- Income requirement: Rs 3 lakhs per annum
- Documents: Last two years Income Tax Returns / Form 16 (mandatory)
Self-employed Professionals
- Income requirement: Rs. 3 lakhs per annum
- Documents: Last two years Income Tax Returns
Agriculturists
- Income requirement: Rs 3 lakhs per annum
Bank of Maharashtra Used Car Loan Interest Rates
Interest on the Mahabank Vehicle Loan for used cars depends on the relationship of a borrower with the bank. Existing borrowers can pay interest as per the base rate, while new borrowers will be charged an interest based on MCLR.
Bank of Maharashtra Marginal Cost of Funds Based Lending Rate (MCLR) (For new borrowers)
MCLR takes factors like cash reserve ratio, repo rate, current fiscal trends, etc. to compute the interest payable. The tenure of a loan plays a key role in determining the final amount payable, with the table highlighting the current rates as of 17 June 2026.
Loan Tenure | MCLR (p.a.) |
Overnight | 7.50% |
1 Month | 8.30% |
3 Months | 8.55% |
6 Months | 8.80% |
1 Year | 8.95% |
Note: The interest rates are effective from 17 June 2026.
Interest Rates for New Borrowers (RLLR-Based Pricing)
CIBIL Score Range | Effective Interest Rate (p.a.) | Rate Breakdown |
750 & above | 11.20% | RLLR (8.05%) + 3.15% |
700 – 749 | 11.55% | RLLR + 3.50% |
650 – 699 | 12.05% | RLLR + 4.00% |
600 – 649 | 13.05% | RLLR + 5.00% |
Below 600 | 14.05% | RLLR + 6.00% |
No Credit History (NTC) | 12.05% | RLLR + 4.00% |
Note: The interest rates are effective from 27 February 2026.
Summary
Bank of Maharashtra's Mahabank Vehicle Loan Scheme finances certified pre-owned cars up to three years old, with new borrowers priced on RLLR-based rates that vary by CIBIL score and existing borrowers continuing on Base Rate. Salaried individuals, self-employed professionals, agriculturists, and eligible pensioners can apply, with tenures of up to 60 months. Check the interest rate and eligibility tables above before applying for a Bank of Maharashtra used car loan.
FAQs on Bank of Maharashtra Used Car Loan
1.What is the Bank of Maharashtra Used Car Loan?
The Bank of Maharashtra Used Car Loan is offered under the Mahabank Vehicle Loan Scheme to finance the purchase of a certified second-hand car. It covers cars up to three years old bought through the bank's recognised pre-owned car platforms.
2.Who is eligible for a Bank of Maharashtra used car loan?
Salaried individuals, self-employed professionals, businessmen, agriculturists, and eligible pensioners can apply for a Bank of Maharashtra used car loan. Applicants must be at least 18 years old and meet the bank's income and relationship criteria.
3.What is the maximum age of a car eligible for a Bank of Maharashtra used car loan?
A car must not be more than three years old and must not have run more than 1,50,000 kilometres to be eligible for a Bank of Maharashtra used car loan.
4.Can salaried individuals apply for a Bank of Maharashtra used car loan?
Yes, permanent salaried individuals working in government organisations, PSUs, or with a corporate salary account can apply for a Bank of Maharashtra used car loan. They must also have maintained a minimum relationship period with the bank.
5.Can self-employed professionals apply for a Bank of Maharashtra used car loan?
Yes, self-employed professionals and businessmen with a regular source of income can apply for a Bank of Maharashtra used car loan. Eligibility is assessed using their income tax returns for the last two years.
6.Are agriculturists eligible for a Bank of Maharashtra used car loan?
Yes, agriculturists with a minimum specified land holding engaged in production-oriented activities can apply for a Bank of Maharashtra used car loan. Easily accessible liquid assets also support eligibility.
7.Are pensioners eligible for a Bank of Maharashtra used car loan?
Yes, Government and PSU pensioners who meet the bank's minimum monthly pension requirement are eligible for a Bank of Maharashtra used car loan.
8.What is the loan tenure for a Bank of Maharashtra used car loan?
A Bank of Maharashtra used car loan offers flexible repayment with a tenure of up to 60 months.
9.What documents are required for a Bank of Maharashtra used car loan?
Applicants typically need to submit income proof such as Income Tax Returns or Form 16, depending on their employment category. The exact documents required are listed in the Documents Required section above.
10.Is a guarantor required for a Bank of Maharashtra used car loan?
No, a guarantor is not mandatory for a Bank of Maharashtra used car loan. The loan is instead secured through hypothecation of the vehicle.
11.How is the used car pledged as security for a Bank of Maharashtra used car loan?
The car is hypothecated to the bank, and the borrower must maintain updated insurance and RTO records with the bank's clause noted. This remains in place until the loan is fully repaid.
12.How is the interest rate decided for a Bank of Maharashtra used car loan?
New borrowers are priced using the Repo Linked Lending Rate (RLLR), with the applicable spread depending on their CIBIL score. Existing borrowers who have not migrated continue to be charged as per the bank's Base Rate policy.
13.What is MCLR and how does it apply to a Bank of Maharashtra used car loan?
MCLR, or Marginal Cost of Funds based Lending Rate, is a benchmark that factors in elements like the cash reserve ratio and repo rate. It is used to price certain new-borrower loans, with current rates listed in the MCLR table above.
14.Where should the used car be purchased from for a Bank of Maharashtra used car loan?
The used car should be purchased from a certified pre-owned car platform recognised by the bank, such as a manufacturer-backed second-hand car dealership. This helps ensure the vehicle's valuation and paperwork meet the bank's requirements.
15.What is the processing fee for a Bank of Maharashtra used car loan?
The processing fee is charged as a percentage of the loan amount, subject to a minimum amount, and is listed in the Features section above. Borrowers should confirm the current fee with the bank before applying.
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