Used Car Loan Interest Rate

Used Car Loan Interest Rate 2024- ROI 9.20% p.a.

Car is a secured loan. If you take a pre-owned or used car loan, you will get cheaper interest than other loans. Lenders provide used car loans of 70% to 80% of current market value. So, the rest amount the borrower needs to pay.

Public and Private sector banks offer 11% to 15.50% interest rates on used car loans. Check out the latest used car loan interest rates.

Top Banks Used Car Loan Interest Rate

BanksInterest Rate
Tata Capital14.99% p.a. onwards
Indostar Capital Finance10.00% to 14.60%
Bank of Baroda11.90% to 14.65%
Bank of Maharashtra12.45% to 15.30%
Punjab National Bank9.95% to 10.75%
State Bank of India11.25% to 14.75%
Axis Bank13.45% to 17%
HDFC Bank13.75% onwards
ICICI Bank11.25% to 18%
IDFC First Bank13.49% onwards
Karur Vysya Bank11% to 15.50%
South Indian Bank11.65% to 17.60%
Tamilnad Mercantile Bank11.85% onwards
Dhanlaxmi Bank12% to 15.40%
Union Bank of India12.90% to 13%
Jammu & Kashmir Bank12.85% to 13.85%
Mahindra Finance9.20% to 11.25%

Features of Used Car Loan

Taking a pre-owned car loan is a good idea to save some money. Salaried or Self-employed customers are qualified to apply for pre-owned car loans.

  • Used car loan repayment terms are flexible for borrowers.
  •  Get an LTV (Loan-to-Value) ratio of 70% to 80% of the current market price.
  •  Enjoy a lower insurance charge rate compared to the new car loan.
  • The paperwork process is affordable for borrowers.
  • Some lenders charge NIL foreclose charges.
  • Application is easy through the online journey.

Also Read: Top 5 Credit Line Loan

Eligibility for Pre-owned Car Loan

Check used car loan eligibility details before going through the loan process:

  • Income Details: Salaried / Self-employed
  • Age to eligible: 21 to 60 years
  • Minimum Salary of Rs. 18,000 need
  • Credit Score: 710+ or above
  • DPD/ Loan Defaulter customers are not eligible

Documents to Apply for Used Car Loan

Salaried Person

  • Pan Card
  • Aadhaar Card
  • Update Salary slip
  • 6 months bank statement
  • Form 16 (if required)
  • Seller RC book copy
  • Seller & Buyer Sale Agreement copy
  • Seller Car insurance copy
  • Hypothecation clearance letter copy
  • Other documents if need

Self Employed

  • Pan Card
  • Aadhaar Card
  • 2 years Trade License
  • 2 years Income Tax File
  • Recent 6 months’ bank statement
  • Seller RC book copy
  • Seller & Buyer Sale Agreement copy
  • Seller Car insurance copy
  • Hypothecation clearance letter copy
  • Other required documents

Also Read: How to use ATM Card to withdraw Money

Used Car Loan Charges

Processing FeeUp to 3% (Depend Lender to Lender)
Penal Interest Charge2% of overdue loan amount + GST
Cheque BounceRs. 250 to Rs. 500 + Tax
Duplicate NOC ChargeRs. 300 + Tax
Documents ChargeRs. 500 + Tax
** Charges may change depending on lenders. You should confirm with the bank.

Apply for a Used Car Loan Online

1. Select the lender and land on the official website.

2. Online fill out the application form for a used car loan.

3. Provide borrower details KYC, phone number & Email ID.

4. If you are relevant, the bank will directly call you for the loan process.


What is the interest rate offered by ICICI Bank for a used car loan?

The ICICI Bank offered an attractive interest rate of 11.25% to 18% annually.

Does Indostar Capital Finance provide a used car loan?

Indostar Capital Finance offered used car loans with minimal documents at 10.00% to 14.60% p.a.

What is the processing fee for a used car loan?

The used car loan process fee may change from bank to bank. However approximate processing fees of up to 3% are applicable. Additional GST charges will be included.

What is the used car loan interest rate of the State Bank of India?

State Bank of India provides lower used car loan interest at 11.25% to 14.75% p.a.

Can I apply for a used car loan online?

Now, lenders are provided with used car loans through online applications. The borrower should fill up the correct information and the bank will contact him/her directly.

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