Bank of Maharashtra Used Car Loan

1. Eligibility: Available to salaried individuals, entrepreneurs, and agriculturists for purchasing second-hand cars (up to 3 years old).

1. Loan Amount:Salaried: Up to 20× net monthly incomeOthers: Up to 2× average annual income (max ₹5 lakh)
   1. Salaried: Up to 20× net monthly income
   2. Others: Up to 2× average annual income (max ₹5 lakh)

1. Margin: Minimum 50% of car’s value financed (based on insurer’s valuation)

1. Tenure: Flexible repayment up to 60 months

1. Processing Fee: 0.25% of loan amount (min ₹500)

1. Security:Hypothecation of the vehicle Updated insurance and RTO records with bank clause
   1. Hypothecation of the vehicle
   2. Updated insurance and RTO records with bank clause

1. Guarantor: Not mandatory

1. Income Cap: Total deductions, including EMI, must not exceed 60% of gross monthly income

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.

Documents required

Salaried Employees

1. Income requirement - Rs 3 lakhs per annum
2. Documents - Last two years Income Tax Returns / Form 16 (mandatory)

Self-employed Professionals

1. Income requirement - Rs. 3 lakhs per annum
2. Documents - Last two years Income Tax Returns

Agriculturists

1. 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 rates for July 2025.

Interest Rates for New Borrowers (RLLR-Based Pricing)

Existing Borrowers (Base Rate Linked Loans)

Borrowers who availed loans before the switch to RLLR and chose to continue under Base Rate will be charged as per the bank’s existing base rate policy.

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score