🚙Compare Used Car Loans
Pre-owned car financing — up to 7 year old vehicles • Rates from 10.50% - 18%
Step 1: Employment Details
What is a Used Car Loan?
A used car loan is a secured loan for purchasing second-hand vehicles. The interest rates are 2-3% higher than new car loans due to the depreciated value and higher risk. Banks require a vehicle inspection and valuation before approving the loan.
A used car loan helps you finance the purchase of a pre-owned vehicle. Interest rates start from 10.50% p.a. in 2026. Banks typically finance vehicles that are up to 5-7 years old, with loan tenures up to 5 years.
Used Car Loan Interest Rates 2026 — Bank-wise Comparison
Compare the latest used car loan interest rates across India's top banks and NBFCs. Rates updated March 2026.
| Bank / NBFC | Interest Rate (p.a.) | Max Amount | Processing Fee | Tenure |
|---|---|---|---|---|
| HDFC Bank | 10.50% - 16.00% | ₹50 Lakh | ₹5,500 | Up to 5 years |
| ICICI Bank | 11.00% - 15.00% | ₹40 Lakh | ₹4,000 | Up to 5 years |
| Axis Bank | 12.50% - 18.00% | ₹30 Lakh | ₹3,500 | Up to 5 years |
| Maruti Finance | 11.25% - 15.00% | ₹25 Lakh | ₹3,000 | Up to 5 years |
* Rates are indicative and subject to change. Actual rate depends on CIBIL score, income, and bank policies.
Used Car Loan Eligibility Criteria
💼 For Salaried Individuals
- ✓Age: 21-60 years
- ✓Minimum income: ₹15,000/month
- ✓CIBIL score: 700+
- ✓Vehicle must be less than 7 years old
🏢 For Self-Employed
- ✓Age: 21-60 years
- ✓Business vintage: 2+ years
- ✓Minimum income: ₹3 lakh/year
- ✓Vehicle inspection required
Documents Required for Used Car Loan
- 📄PAN Card & Aadhaar Card
- 📄Income proof
- 📄RC book & insurance copy of the vehicle
- 📄Vehicle valuation report
- 📄Seller KYC documents
- 📄Bank statements (6 months)
Tips to Get the Best Used Car Loan Deal
- Get the vehicle independently inspected before applying for the loan
- Buy from certified pre-owned dealers for better quality assurance and financing options
- Ensure the RC is clear of any existing hypothecation before purchasing
- Negotiate the interest rate — used car loan rates have 3-5% variation between banks