Drive Home Your Dream Car with Used Car Loan
Affordable financing solutions to own a pre-loved car with ease and confidence.
Why Choose Us for Used Car Loan?
Attractive Interest Rates
Competitive rates that make your used car purchase light on your pocket.
Quick Approval & Disbursement
Fast processing ensures you drive home your car without delays.
High Loan-to-Value (LTV) Ratio
Finance up to 90% of the car’s value.
Flexible Tenure Options
Repayment tenures ranging from 12 to 84 months to suit your financial plans.
Eligibility Criteria
- Applicant age: 21 to 65 years.
- Salaried or self-employed individuals with stable income.
- Minimum income as per bank norms.
- Good credit score/history.
Documents Required
- Identity proof (Aadhaar, PAN, Passport, Voter ID).
- Address proof (Aadhaar, Passport, Utility bill).
- Income proof (salary slips, bank statements, ITR).
- Car registration certificate (RC).
- Insurance papers of the vehicle.
- Sale agreement or invoice of the used car.
Our Partner Banks
Key Features
Loan up to ₹50 lakh based on vehicle age & profile.
Finance available for cars up to 10 years old.
Minimal paperwork and doorstep documentation.
Balance transfer facility available.
Foreclosure options with minimal charges.
Application Process
- Apply: Submit loan application online or visit the branch.
- Document Collection: Submit required documents for verification.
- Approval: Bank processes and approves your loan quickly.
- Disbursement: Loan amount disbursed to seller or dealer.
EMI Calculator
**Note: For exceeding 120 no. of payments, a group of 12 payments will be combined into a single payment number for better chart visibility.
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1. What is the eligibility for a used car loan in India?
The eligibility for a used car loan in India generally depends on the applicant’s age, income, and credit score. Most banks and NBFCs require the borrower to be between 21 and 65 years old with a stable source of income. Both salaried and self-employed individuals can apply for a used car loan if they meet the lender’s income criteria and have a good credit score (usually 650 or above).
2. What is the interest rate for used car loans in India?
The used car loan interest rate in India usually ranges between 10% and 18% per annum, depending on the lender, the borrower’s credit score, loan amount, and the age of the vehicle. Applicants with a higher credit score and stable income may get a lower interest rate on their used car loan.
3. How old can a car be to get a used car loan in India?
Most lenders offer a used car loan for vehicles that are up to 8 to 10 years old. However, the maximum age limit may vary depending on the bank or NBFC. In many cases, lenders ensure that the car’s age plus the loan tenure does not exceed 10 to 12 years.
4. What documents are required for a used car loan?
The documents required for a used car loan in India usually include identity proof, address proof, and income proof.
Common documents include:
Identity Proof: PAN Card, Aadhaar Card, Passport, or Driving License
Address Proof: Aadhaar Card, Utility Bill, or Rent Agreement
Income Proof for Salaried: Salary slips, bank statements, Form 16
Income Proof for Self-Employed: ITR returns, bank statements, business proof
Vehicle Documents: RC (Registration Certificate), insurance papers, and seller details
The exact document requirement may vary depending on the lender.
5. Is the interest rate on a used car loan higher than a new car loan?
Yes, used car loan interest rates are generally higher than new car loan rates. This is because used vehicles have higher depreciation and risk for lenders. However, borrowers with a good credit score and strong financial profile can still get competitive interest rates for used car financing.
6. Can self-employed individuals apply for a used car loan?
Yes, self-employed individuals can apply for a used car loan in India. Business owners, freelancers, and professionals can get a used car loan by providing income proof such as ITR returns, bank statements, and business registration documents. Lenders check the applicant’s income stability and credit history before approving the loan.
7. What is the maximum loan amount for a used car loan?
The maximum loan amount for a used car loan in India usually depends on the car’s current market value and the lender’s policy. Most lenders provide 70% to 90% of the vehicle’s value as loan financing. The final loan amount may also depend on the borrower’s income, credit score, and repayment capacity.
8. What is the loan tenure for a used car loan?
The loan tenure for a used car loan in India typically ranges from 12 months to 60 months (1 to 5 years). The exact tenure depends on the age of the vehicle and the lender’s policy. Older cars may have shorter loan tenures compared to newer used vehicles.
9. Can I get a used car loan with a low credit score?
Yes, it may still be possible to get a used car loan with a low credit score, but approval depends on the lender’s policy. Some lenders may approve the loan if the borrower has stable income and good repayment capacity, although the interest rate may be slightly higher.