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Average Review

Used Car Loan

Get Loan Against Car

  • Loan upto 50 Lakhs
  • Continue Using Car
  • No Bank Visits
  • Interest Rates starts from 10.99%

What Is Used Car Loan

If you need immediate funds and own a car, leveraging its value through a used car loan can be a smart and efficient solution. This guide explains how you can take a loan against your existing vehicle, the eligibility criteria, required documents, and important tips to consider to ensure a smooth process.

A used car, also known as loan against car or car refinance loan, allows you to borrow funds by using your existing car as collateral. Bannks or NBFC sanction a certain percentage of your car’s market value, and you continue to retain ownership and use of the vehicle during the loan tenure.

11%

Interest Rate

Provide the current interest rate for loan

50L

Loan Amount Range

Specify the minimum and maximum loan

2.5%

Fees and Charges

List any fees or charges associated with loan

Steps to Apply for a Loan on Your Pre-Owned Car

  1. Assess Your Car’s Eligibility:
    1. Car Age Limit: Most lenders provide loans for cars usually less than 8-10 years old at the time of application.
    2. Car Condition: The vehicle should have been maintained well, with all necessary documentation in place.
    3. Ownership: The car must be registered in your name with a valid Registration Certificate (RC).
  2. Check Your Loan Eligibility
    1. Age: Usually between 21 and 60 years old.
    2. Income: Proof of stable income is required.
    3. Employment Type: Available for salaried, self-employed professionals, and business owners.
  3. Gather Necessary Documents:
    1. KYC documents (Aadhaar card, PAN card, voter ID, etc.
    2. Proof of income (salary slips, IT returns, bank statements)
    3. Car documents (RC, insurance certificate, pollution under control certificate)
  4. Apply and Get Your Car Evaluated:
    1. Application: Submit your application online through our form or caalling directly to our customer care.
    2. Car Inspection: The lender’s representative will inspect the car to assess its value.
    3. Loan Offer: Based on evaluation, you will receive a loan offer, typically ranging from 80-90% of the car’s present market value.
  5. Review and Accept Loan Terms:
    1. Check the interest rate, processing fee, tenure, and EMI.
    2. Clarify prepayment or foreclosure charges.
    3. If satisfied, sign the agreement to disburse the loan amount.
  6. Loan Disbursal:
    1. The amount is credited to your bank account, often within a few days of completing formalities.
    2. You continue to drive and own the car, but the lender holds a lien until the loan is fully repaid.

Top Banks Offering Used Car Loans in India (Sep 2025)

Bank/Financer Interest Rate (p.a.) Key Notes
HDFC Bank 11% onwards Flexible tenure up to 7 years
ICICI Bank 12.80% onwards Based on CIBIL score & car segment
SBI 11.55% – 15.05% Certified Pre-Owned Car Loan Scheme
Axis Bank 10.80% – 16.55% Tenure up to 7 years
IDFC FIRST Bank 11.99% onwards (Repurchase), 13.99% onwards (Refinance)
Hero Fincorp 12% onwards Flexible loans up to ₹1 lakh
Tata Capital 15% onwards Tenure up to 5 years
Bajaj Finserv 12% onwards Quick approval, minimal paperwork
Yes Bank 9.75% onwards Hassle-free loans
Poonawalla Fincorp 12% – 15.75% Personalized offers

Documents Requred for Used Car Loan

Here is the list of documents required for Used Car Loan

Document Type Salaried Employee Businessmen
ID Proof Aadhaar Card & PAN Card Aadhaar Card & PAN Card
Address Proof Latest Utility Bill, Rent Agreement (If Rented) Latest Utility Bill, Rent Agreement (If Rented)
Income Proof Latest 3 months’ salary slips, Form 16, Six months bank statements Last 2 years’ ITRs, audited financials, bank statements for 6–12 months
Proof of Employment/Business Employee ID card, Offer/Appointment letter Business registration, GST certificate, Shop & Establishment Act license
Photographs 1–2 passport size photos 1–2 passport size photos
Car Documents RC (Registration Certificate), Insurance, PUC RC (Registration Certificate), Insurance, PUC
Other Loan application form, processing fee cheque Loan application form, processing fee cheque

Average Reviews

4.9/5

26 Rating

5
90%
4
75%
3
67%
2
44%
1
21%

All Reviews

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Aug 31, 2025 09:01 am

I had a great experience applying for a used car loan. The support team was responsive, and the loan disbursal was faster than I expected. Truly reliable platform.

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Rohini Mehta

Noida

Mar 03, 2023 09:01 am

I was worried about paperwork, but the team guided me throughout the process. Everything was transparent, and I got the best deal for my pre-owned car loan.

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Amit Joshi

Faridabad

Mar 03, 2023 09:01 am

LoanHelpIndia made my used car purchase so simple. The loan was approved within 2 days, and the interest rate was much lower than what other lenders offered. Highly recommended.

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Sandeep Kumar

New Delhi

See All Reviews

A used car loan, also known as a pre-owned car loan, is a type of financing that helps you purchase a second-hand car by paying in affordable EMIs instead of a lump sum.

Interest rates for used car loans usually start from 10.75% onwards and may vary depending on the bank/NBFC, your CIBIL score, loan amount, and car model.

Most lenders finance up to 90% of the car’s value. The exact amount depends on the car’s age, condition, and your credit profile.

Used car loans typically come with a tenure of 1 to 7 years, depending on the lender and the car’s age.

Usually, a guarantor is not required if you meet the lender’s eligibility criteria. However, some banks/NBFCs may ask for one in special cases.

The common documents include:

  • ID proof (Aadhaar, PAN, Passport, etc.)
  • Address proof
  • Income proof (Salary slips/ITR/Bank statements)
  • Vehicle documents (RC, insurance
  • Passport Size Photo

Yes, but the chances of approval reduce. If approved, you may be charged a higher interest rate compared to applicants with a good CIBIL score.

Most lenders provide instant or same-day approval, while the disbursal may take 1–3 working days, subject to document verification.

Yes, you can foreclose or prepay your used car loan. However, lenders may charge a small foreclosure/prepayment fee, depending on their policy.

Popular lenders include HDFC Bank, ICICI Bank, SBI, Axis Bank, IDFC FIRST Bank, Bajaj Finserv, Hero Fincorp, Tata Capital, Yes Bank, and Poonawalla Fincorp.

Apply for Used Car Lon

Minimum Loan Start

Rs 1,00,000
  • Check Your Eligibility
  • Upload Documents
  • Check Your Offer
  • Review and Accept Offer
  • Receive Money in Bank Account
Apply Now

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