Used Car Loan Guide
Everything you need to know about financing a used car in India
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Used Car Loan Interest Rates (2024)
| Bank/NBFC | Interest Rate | Max Tenure | Max Car Age | Processing Fee |
|---|---|---|---|---|
| SBI | 9.50% - 10.50% | 7 years | 10 years | 0.50% |
| HDFC Bank | 9.75% - 11.00% | 7 years | 10 years | 0.50% |
| ICICI Bank | 10.00% - 11.50% | 5 years | 8 years | 0.50% |
| Bank of Baroda | 9.50% - 10.75% | 7 years | 10 years | ₹1,500 |
| Axis Bank | 10.50% - 12.00% | 5 years | 7 years | 1.00% |
| Kotak Mahindra | 10.00% - 12.00% | 5 years | 8 years | 0.50% |
| Bajaj Finance | 11.00% - 14.00% | 5 years | 10 years | 1.50% |
* Rates are indicative and may vary based on credit score, car age, and loan amount. Last updated: Feb 2024.
Eligibility Criteria
Salaried Employees
- Age: 21-60 years
- Min. income: ₹15,000/month
- Min. work experience: 1 year
- Credit score: 700+
Self-Employed
- Age: 21-65 years
- Min. income: ₹2 Lakhs/year
- Business vintage: 2 years
- Credit score: 700+
Documents Required
- PAN Card & Aadhaar Card
- Last 3 months salary slips (salaried) or ITR for 2 years (self-employed)
- Last 6 months bank statements
- Address proof (utility bill / passport)
- Car RC copy and insurance
- Seller's KYC documents
- Car inspection report (provided by bank)
Tips to Get the Best Used Car Loan
- Maintain a good credit score: A score above 750 gets you the best rates.
- Compare across lenders: Don't just go with your existing bank — compare rates.
- Choose shorter tenure: Longer tenures mean more interest. Keep it under 5 years if possible.
- Pay a higher down payment: 20-30% down payment reduces your EMI and interest.
- Avoid very old cars: Banks prefer cars under 7-8 years old. Older cars get higher rates.
- Check for pre-approved offers: Your existing bank may have pre-approved loans at lower rates.
Find Your Car First
Browse thousands of verified used cars and apply for a loan.
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