Pre Owned Car

Easy funding to get the car you want

Used Car Loan

A Car Loan for second-hand cars works similarly to a loan for a new car. In India, most banks and NBFCs offer financing options specifically designed for buying pre-owned cars. 

The second-hand car loan market in India has grown significantly in the past few years. It is relatively easy to get budget-friendly pre-owned cars that are in great condition too.

Before providing approval for a Used Car Loan, banks check the chosen car model's age and discontinuation status. The combined total of the car's age and the loan repayment schedule should ideally not exceed 8 to 10 years. Select a relatively newer car model, not more than 2 to 3 years old, to improve your chances of obtaining the required financing.

Applicable Charges

Here is a list of applicable charges when taking a loan for a second-hand car:

Sr No. Types of ChargesCharges
1Cheque/ECS/NACH Bounce/Instrument Return ChargesRs 339/- per instance
2Cheque/Instrument Swap Charges Rs 500/- per instance
3Duplicate Statement Issuance ChargesRs 250/- per instance
4Duplicate Repayment Schedule Issuance ChargesRs 250/- per instance
5Duplicate No Dues Certificate/NOCRs 50/- per instance
6Penal interest2% per month
7Loan cancellation/Re-bookingRs 550/- per case
8Foreclosure/Part Payment Closure5% of the Principal Outstanding
9Stamp DutyAt actuals
10Issuance of Credit ReportRs 50/- per instance
11Documentation ChargeRs 700/-
12Registration Certification Collection ChargeRs 250/- per instance
13Valuation ChargesRs 590 (inclusive of GST)

* Goods and Services tax will be charged extra as per the applicable rates on all the charges and fees (wherever GST is applicable).


Banks or financial institutions offer financing options for individuals who want to buy a used or pre-owned vehicle. You'll need to repay the borrowed amount with interest over the loan tenor.

Yes, banks offer loans specifically designed for second-hand or used cars. These loans function similarly to those for new cars. You can contact your bank to apply for a Used Car Loan. Upon approval of your application, you can utilize the loan amount to buy the pre-owned vehicle you desire.

The amount you can get for a Used Car Loan depends on your creditworthiness, the lender's policies, and the age and value of the used car. Most banks offer 80-100% financing for used car loans. 

A second-hand car loan provides good funding, enabling you to cover a part of the vehicle's purchase price. Buying a used car on loan can be a suitable option for many individuals, but you must assess your financial situation and choose a loan that aligns with your needs and preferences.

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