Used Car Loan

Anybody planning to buy a second-hand car or want to leverage a pre-owned car, can consider availing a used / pre-owned car loan. This is a loan which is offered by taking your car as collateral.

Used car loans is a very useful product which offers an opportunity to a motor vehicle owner to avail a loan up to 200% of the value of the vehicle subject to eligibility.

Though different financers will have their own funding norms, but most of the banks extend these loans in the range of 10-50 lacs for a period of 2- 5 years.

The processing of these loans is relatively very simple and swift with minimal documentation.

Who can avail this loan?

Any individual, salaried or self-employed who has a car or is planning to purchase a pre-owned car.


Any applicant owning a car, can avail this facility.

The mandatory documents are:

  1. Address Proof and Identity Proof documents
  2. Salary Slips for the last three months
  3. Bank Statements for the last six months
  4. RC book & Insurance

The repayment tenor for the loan ranges from 12-60 months. The age of the vehicle at the end of Loan tenor should not exceed 10 Years.

No, the car itself acts as a security here.

It takes us 24-36 hours from the completion of documentation to sanction a used car loan.

Yes, The car that you want to pledge as security, will undergo a valuation and verification process.

Any Hatchbacks and Sedans, excluding some models that are out of production, can be financed. However, funding against commercial/yellow number plate vehicles cannot be availed

The loan can be repaid through ECS, Direct debit and post-dated cheques.

You can prepay the loan, However, financier would charge prepayment penalty.

Credit report provides details on your financial status and your ability to repay a Loan. This helps us evaluate your financial history. A good credit report will help you take a loan easily.

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