Vehicle finance
Used Car Loan
Pre-owned cars, financed on terms that reflect the car's real value.
Loans for pre-owned cars up to 10 years old, funding up to 90% of the assessed value at rates from about 11% p.a., with tenures up to 5 years.
- Rate from
- 11.00% p.a.
- Amount
- ₹1 L to ₹50 L
- Tenure
- 1 to 5 years
- Processing fee
- 1% to 2% of the loan amount plus GST
Check used car loan eligibility
Free pre-screen across our lender panel. No bureau enquiry.
About used car loans
The used car market has become organised and fast, with certified dealers, online marketplaces and lender valuation models that make financing straightforward. Rates are higher than new car loans because of valuation and age risk, but the smaller ticket keeps EMIs modest.
We work with banks and NBFCs that specialise in pre-owned financing, including those comfortable with private-party purchases and older vehicles. We tell you how much a lender is likely to value the car at, so you negotiate a fair price and avoid a funding gap.
Rate note: Rates depend on car age, model, valuation and borrower profile. Funding: Up to 80% to 90% of the lender's assessed value; combined car age plus tenure usually capped at 10 to 12 years.
Why borrowers choose it
What a used car loan through LoansPartner gets you
Up to 90% of assessed value
Small down payment on a well-valued car.
Private and dealer purchases
Financing for marketplace, dealer and individual seller transactions.
Refinance an owned car
Raise funds against a car you already own outright.
Fast valuation
Lender panels inspect and value within a day in most cities.
Common uses
- First car on a budget
- Refinancing an existing used car loan
- Raising funds against an owned car
- Upgrading within the pre-owned segment
Eligibility
Who qualifies
Norms vary by lender. These are the ranges across our panel; we tell you precisely where your profile fits before you apply.
- Age
- 21 to 65 years at loan maturity
- Income
- Net annual income of ₹2.5 lakh or more
- Credit score
- 680 and above; lower scores considered with a higher down payment
- Employment
- Salaried. Self-employed
Documents
What to keep ready
A complete file is the single biggest driver of a fast sanction. We collect everything digitally in one go.
- PAN, Aadhaar and photographs
- Salary slips and 6 months' bank statement
- RC copy, insurance and valuation report of the car
- Sale agreement or dealer invoice
- PAN, Aadhaar and photographs
- Last 2 years' ITR and 6 months' bank statements
- Business proof
- RC copy, insurance, valuation report and sale agreement
How it works
Five steps, one point of contact
- 01
Share the car details (make, model, year, expected price) and your income.
- 02
We indicate likely valuation and shortlist lenders that fund that age and segment.
- 03
Valuation and documents are completed; sanction follows within a few days.
- 04
The lender pays the seller; the RC is transferred with hypothecation.
- 05
You take delivery. We help close the loan and remove hypothecation later.
Indicative EMIs
What the instalment looks like
Computed at the lowest rate in this product's range. Run your own numbers in the EMI calculator.
| Loan amount | 1 yr | 2 yr | 3 yr | 5 yr |
|---|---|---|---|---|
| ₹1,00,000 | ₹8,838 | ₹4,661 | ₹3,274 | ₹2,174 |
| ₹2,00,000 | ₹17,676 | ₹9,322 | ₹6,548 | ₹4,348 |
| ₹5,00,000 | ₹44,191 | ₹23,304 | ₹16,369 | ₹10,871 |
| ₹10,00,000 | ₹88,382 | ₹46,608 | ₹32,739 | ₹21,742 |
| ₹20,00,000 | ₹1,76,763 | ₹93,216 | ₹65,477 | ₹43,485 |
Lenders
Where we place used car loan files
A selection from our panel. The best lender for you depends on your profile, city and the property or asset involved.
HDFC Bank
Private bankSalaried professionals seeking competitive personal, home and car loan pricing.
IDFC FIRST Bank
Private bankSalaried personal loan borrowers and small businesses.
IndusInd Bank
Private bankCar buyers and salaried personal loan applicants.
Bajaj Finance
NBFCProfessionals and businesses seeking quick unsecured loans.
Tata Capital
NBFCSMEs needing equipment and working capital finance.
L&T Finance
NBFCBorrowers in tier 2 cities and beyond.
FAQs
Used Car Loan questions, answered
How old a car can be financed?
Most lenders finance cars up to 8 to 10 years old at the end of the loan tenure. A 5-year-old car, for example, could get a 5-year loan with some lenders and 3 years with others.
Can I get a loan for a car bought from an individual?
Yes. Several NBFCs and some banks fund private-party sales, with the loan disbursed to the seller after RC transfer paperwork is in place.
Why are used car loan rates higher than new car rates?
Valuation uncertainty and faster depreciation mean more risk for the lender. A larger down payment or a newer car brings the rate down.
Related products
Sometimes a different product is cheaper. We will say so.
Car Loan
New car loans covering up to 100% of on-road price at rates from about 8.5% p.a., with tenures up to 7 years, across banks and captive finance companies.
- Rate from
- 8.50% p.a.
- Up to
- ₹2 Cr
Personal Loan
Collateral-free personal loans from ₹50,000 to ₹50 lakh at rates starting around 10.25% p.a., with disbursal typically within 48 hours of approval.
- Rate from
- 10.25% p.a.
- Up to
- ₹50 L
Get your used car loan shortlist.
Share your requirement in two minutes. Our credit desk pre-screens your profile and calls with lenders, rates and next steps. No fee, no bureau enquiry.