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Looking for the best way to finance your second-hand car? Whether you’re eyeing a hatchback, an SUV, or a premium sedan, a loan is the best financing option. With a used car loan, you can bring home your desired ride without dipping into your savings.
We offer loans for a wide range of second-hand cars, so you don't have to compromise on your dream vehicle. You can avail of a loan for up to 95% of your car value. What's more? You get to enjoy flexible EMI repayment options and quick disbursal of funds which makes Tata Capital the best choice for taking car loans for used cars.
Disclaimer: Used Vehicle Loans are at the sole discretion of Tata Capital Limited (TCL).Terms and conditions apply
Loan Amount
₹1,00,000 - ₹50,00,000
Loan Tenure
12 - 72 months
Interest rate starting from
10.75%
Loan amount
Loan duration
Loan duration
Rate of interest
Monthly EMI
Total Amount Payable
0*
Total Interest Payable
0*
Total Amount Payable
Total Interest Payable
The following table highlights pre-owned car loan interest rates and the other charges applied to used car finance.
| Type of fee | Applicable charges |
|---|---|
| Rate of interest | Starting from 10.75% per annum |
| Processing fees | Up to 2.95% of the loan amount + GST |
| Documentation charges | Up to Rs. 1,999 |
| Part-pre-payment charges/Foreclosure charges |
6% of the part-pre-payment amount within 12 months of the date of the first disbursement 5% of the part-pre-payment amount after 12 months of the date of the first disbursement |
| Penal charges | 3% per month on the defaulted amount |
| Statement of accounts charges |
Customer portal - NIL Branch walk-in - Rs. 250 |
| Loan cancellation charges | Rs. 6,500 |
| Duplicate NOC charges | Rs. 300 |
| Valuation charges | Rs. 750 |
| Stamp duty | At actuals |
| NACH/PDC charges | Rs. 500 |
| PDD charges | Rs. 450 |
Visit the used car loan rates & charges page for a detailed breakdown of the costs.
The pre-owned car loan eligibility will depend on whether you’re a salaried individual or a self-employed individual. The following sections describe the eligibility criteria for securing auto loans for used vehicles.
Salaried Individuals must meet the following used car loan eligibility criteria–
You must be between 21 and 60 years of age.
Your minimum monthly salary must be Rs. 25,000.
You must have a minimum of one year of work experience.
The pre-owned car loan eligibility will depend on whether you’re a salaried individual or a self-employed individual. You can check eligibility for a 2nd hand car loan here-
Self-employed individuals must meet the following used car loan eligibility criteria –
You must be between 21 and 65 years of age.
The business must have been operating for at least past two years to at least past 2 years.
You must have a minimum income of Rs. 3 lakhs per annum.
The pre-owned car loan eligibility will depend on whether you’re a salaried individual or a self-employed individual. You can check eligibility for a used car loan here-
Self-employed individuals in a partnership must meet the following criteria-
Either the Firm or the Individual partner must have an income of ₹3,00,000 per annum
You must have the last 3 months' bank statements
ABB should be 0.5 times the EMI
The pre-owned car loan eligibility will depend on whether you’re a salaried individual or a self-employed individual. You can check eligibility for a used car loan here-
For self-employed (others), here is the list to check eligibility for a car finance for a used car before applying.
Your income must be ₹3 lakhs per annum
You must have the last 3 months' bank statements
ABB should be 0.5 times EMI
The documents required for a second-hand car loan vary depending on your employment type.
Photo Identity Proof: Voter's ID/Passport/Driving License/Aadhaar Card
Income Proof : Copy of your Salary account bank statements for the last three months
Copy of Salary Slips of the last three months
Proof of Residence : A copy of your Voter ID / Passport / Driving License / Aadhaar Card
Copy of Vehicle Registration Certificate
The documents required for a second-hand car loan vary depending on your employment type.
Photo Identity Proof : Voter's ID/Passport/Driving License/Aadhaar Card
Copy of your signature with signature proof
Proof of Residence : A copy of your Voter ID / Passport / Driving License / Aadhaar Card
Income Proof : Copy of Income Tax Returns (ITR), audited Balance Sheet, and Profit and Loss Statements along with the last three months’ Bank Statements
With Tata Capital, you can avail of an old car loan either online or offline.
Apply for an old car loan by filling out an online form.
Visit any used car dealership associated with Tata Capital.
Provide the required documents for verification.
Once our representatives verify all details, we will approve your request.
After approval, we will sanction the old car finance directly to your bank account.
Make sure you check eligibility for a car loan for second hand car before applying.
With Tata Capital, you can avail of an old car loan either online or offline.
1. Fill in the application: Visit Tata Capital’s website and fill in the application form for a used car loan online.
2. Visit a car dealership: Visit any car dealership associated with Tata Capital to buy a used car.
3. Submit documents: Submit the necessary documents for verification.
4. Approval and disbursal: Once our representatives verify your credentials, we will approve the loan request and the loan amount will be sanctioned directly to your bank account.
Make sure you check eligibility for a used car loan before applying.
Tata Capital offers a well-structured second-hand vehicle loan for purchasing pre-owned vehicles, tailored to modern buyer expectations. Our car loans for older cars combine affordability with flexibility, making ownership practical and stress-free. Here’s a look at the features and benefits of a used auto loan.
High Loan Amount: Finance up to ₹50 lakhs, depending on eligibility
Flexible Tenure: Repayment period of up to 72 months
Competitive Interest Rates: Starting at 10.75%* per annum (flat-rate)
Minimal Documentation: Simple process with easy online application
Quick Disbursal: Loan amount credited within 24–36 hours post-approval
Multiple Repayment Options: Pay via cheques, online modes, or structured EMIs
You must estimate the second-hand car loan EMI to determine if the financing solution is suited to your budget. Here’s the standard EMI calculation formula:
EMI = [P x r x \((1+r)^{n}\)] / [\((1+r)^{n}-1\)]
where,
P is the principal loan amount
R is the monthly interest rate
n is the loan tenure in months
Your second-hand car finance EMI is affected in different ways by the loan amount, interest rate, and loan tenure. If the loan amount is large, the EMI amount will also be higher. Similarly, if the interest rate is high, the EMI amount will rise. In the case of loan tenure, if the repayment period is long, the EMI will reduce accordingly, whereas if the period is short, the EMI will increase.
The fastest and most convenient way to calculate used car finance EMI is a user-friendly online EMI calculator. It eliminates the chances of manual error and guarantees accuracy.
You need to fulfill the following eligibility criteria to be eligible for a used car loan from Tata Capital:
Your age must be between 21 and 60 (salaried)/65 (self-employed) years
You must be earning at least Rs. 25,000 per month; Rs. 3 lakhs per annum if you are self-employed
You must have a minimum of one year of work experience
If you’re self-employed, your business must be in operation for at least two years
You must have a healthy CIBIL score, preferably above 700
At Tata Capital, we provide used car loans at highly competitive interest rates, starting from just 10.75% per annum. The actual second-hand car finance interest rate depends on various factors, including your CIBIL score, location, type, and age of the vehicle etc.
Other charges associated with a used car loan include:
Processing fees - Up to 2.5% of the loan amount
Documentation charges - Up to Rs. 1,999
Valuation charge - Rs. 750 per valuation
Stamp duty - As applicable
Below are the documents you may need to submit to apply for a used car loan:
Proof of identity - PAN card, Voter ID card, Aadhaar card, Passport, etc.
Proof of Address - Aadhaar card, Voter ID card, Passport, Driving license, etc.
Proof of income - Salary slips, bank statements, Income Tax Returns, etc.
Vehicle-specific documents - RC (Registration certificate) copy, insurance, and valuation report
1. Go to the “Used Car Loan” section on our website and click on “Apply Now”.
2. Fill out an online application form.
3. Upload the required documents.
4. Wait for the verification process to be completed.
5. Upon successful verification of documents, the loan will be approved, and the amount will be disbursed within 24 to 36 hours.
The time taken for the approval of your used car loan application depends on the verification of your documents and credit report. Once approved, the loan amount is disbursed within 24 to 36 hours.
At Tata Capital, the minimum and maximum amounts for used car loans are Rs. 1 lakh and Rs. 50 lakhs, respectively. The actual amount sanctioned is based on the car’s valuation and the loan-to-value (LTV) ratio, which is typically lower for used car loans as compared to new car loans.
At Tata Capital, the minimum and maximum loan tenures allowed for a used car loan are 12 months and 72 months, respectively. You can select an appropriate loan tenure as per your repayment capability. Opting for a longer tenure may lower your EMI amount, but increases the interest outgo, and vice versa.
Different lenders have different eligibility criteria for used car loans, particularly regarding the vehicle’s age. Usually, lenders provide financing for vehicles up to 10 years old (at the time of loan application).
Yes. With the balance transfer facility, you can transfer your existing used car loan balance to Tata Capital and enjoy a lower interest rate, flexible tenure, multiple repayment options, and several other benefits. To avail of this facility, you can get in touch with our representative, and they will guide you through the entire process.
A used car loan EMI calculator is an online tool that helps evaluate the EMIs for your used car loan in advance. You can use it to plan your repayments better and select an appropriate loan amount and tenure so that your EMIs remain affordable.
Yes. You can apply for a used car loan with a co-applicant, who can be your parent, spouse, sibling, or son/daughter. Adding a co-applicant improves your loan eligibility and thus enhances the chances of approval.
Yes. While not always mandatory, making a down payment can reduce your EMI amount and interest outgo. Sometimes, a down payment may be required for higher LTV or older cars. However, with 100% financing from Tata Capital, you can also buy a second-hand car with zero down payment.
Yes. You can pre-pay or foreclose your used car loan anytime after you’ve paid your first EMI. However, you may incur foreclosure charges as mentioned below:
6% of the principal outstanding amount if foreclosed within 12 months of disbursement
5% of the principal outstanding amount if foreclosed after 12 months of disbursement
After you apply for a used car loan, we assign a valuator to determine the valuation of the pre-owned car you’re willing to purchase. The valuator takes into account several factors to determine this valuation. These typically include the make and model of the car, year, mileage, present condition, and market demand.
The benefits of taking a used car loan from Tata Capital are plenty:
Get financing of up to Rs. 50 lakhs to buy your dream car
Choose a convenient repayment tenure of up to 72 months
Highly competitive interest rates, starting from just 10.75% per annum
100% online application process with minimal documentation
Disbursal within 24 to 36 hours after loan approval
A robust customer support team to handle all your queries
No. Used car loans are typically available for private cars. To purchase a commercial vehicle, you can avail of a commercial vehicle loan with Tata Capital. It allows you to finance the purchase of a new or used commercial vehicle, including a truck, bus, car, pick-up van, etc.
Your CIBIL score plays a crucial role in determining the approval of your used car loan application. Lenders typically approve loan applications from borrowers with higher CIBIL scores, preferably 700 or more. An excellent CIBIL score can also fetch you a better interest rate and more favorable loan terms.
The eligibility criteria for a used car loan may vary from one lending institution to another. Generally, the following cars are not eligible for loans:
Cars with commercial or yellow number plates
Private cars that are more than 10 years old
Cars with more than two previous owners
Cars with pending legal issues
Cars with major accidental histories
Cars from unapproved or unauthorized dealers
Once your used car loan application is approved, you can initiate the formal proceedings to obtain your vehicle. They may include the following steps:
1. Sign the loan agreement letter.
2. The loan amount is disbursed to the dealer or seller.
3. A new RC is prepared in the buyer’s name with a hypothecation endorsement.
4. Your vehicle is ready for delivery.
No. Generally, a guarantor or collateral is not required to apply for a used car loan, since the car itself serves as collateral. But in case you do not meet the lender’s eligibility criteria or norms, you may need a guarantor for loan approval. A guarantor is an individual who pledges the responsibility to repay the loan amount if the primary borrower defaults.
Hypothecation is a legal agreement where a vehicle is registered in the name of the borrower, but the lender or financier has a legal claim on it until the loan is fully repaid. It means that the lender can seize the vehicle if the borrower fails to repay the loan amount.
Yes. Your used car will be hypothecated to Tata Capital if you’ve purchased it on a loan. But once you have paid your last EMI, you will get an NOC from us, using which you can remove the hypothecation from your vehicle’s RC.
With Tata Capital, you have the following options to repay your used car loan:
Direct debit from your bank account
Net Banking, debit/credit card, or UPI
Cheque, demand draft, or pay order
You can select a suitable payment option as per your convenience. You can also opt for the structured EMI facility, wherein you can pay lower EMIs initially and gradually increase them over the loan tenure.
Here are 6 reasons to choose Tata Capital for a second-hand car loan-
Apply for a used car loan for greater convenience
We ask for minimal documents while processing your pre-owned car finance request
You can choose from a range of options like ECS, post-dated cheques, and online payment to repay your loan
Avail of the affordable interest rates
Apply for a loan for used cars as high as Rs. 50 lakhs
After we receive and verify your documents, you will get instant approval through our secure platform
Yes, many Indian banks and NBFCs offer second-hand car loans to NRIs. However, they must meet specific eligibility criteria, such as submitting valid income proof and NRI status documents, and adding an Indian co-applicant or guarantor.
Loan refinancing on used cars means replacing your existing car loan with a new one that offers better interest rates or flexible repayment terms. The facility helps reduce the EMI burden or the overall loan cost.
If you miss EMI payments on your used auto car loan, you are liable to pay penalties. Your interest burden can also increase, leaving a negative impact on your credit score. Defaulting repeatedly can also result in vehicle repossession by the lender.
Many lenders avoid financing cars older than 10 years due to depreciation and resale risks. Therefore, it is challenging to get a loan for a 10-year-old car. You may have to fulfill stricter eligibility criteria and agree to higher interest rates or limited tenure loans.
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