Used Car Loan


What is a Used Car Loan?


A used car loan is a loan facility extended to people who are interested in buying used cars or pre-owned cars. Used cars offer value for money, slow rate of depreciation, lower insurance and registration charges, and lower loan amount to be borrowed. Given that there are numerous dealerships selling reliable and good condition pre-owned cars, you may opt for them.


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What does it cover?


Tata Capital offers used car loans with the following features

  • Loan up to 90% value of the used car
  • Loan up to 100% in special cases
  • Loan tenure up to 5 years
  • Loan up to 7 years in special cases
  • Customized repayment schedules
  • Choice of EMI plans
  • Easy to use platform
  • Car Loan Interest rate at minimum of 13.5%


What are the Interest Rates on Used Car Loans?


The car loan interest rate on used car loans is a minimum of 13.5%. Interest rate is applicable on individual cases depending on various factors such as

  • Age of car
  • Type of car
  • Credit score
  • Ability to pay back
  • Work experience, age and profession of the borrower


What is the maximum second hand car loan amount?


The maximum used car loan amount granted is as follows

  • Up to 90% of the value of the used car
  • Up to 100% of the value of the used car in special cases


What is the tenure of the car loan?


The tenure of the car loan is as follows

  • Up to 5 years
  • Up to 7 years in special cases

The tenure depends on the maximum age of the car at the time of maturity of the loan which is 9 years. For instance, if the age of the car at the time of borrowing is 2 years, then the maximum tenure is 7 years in special cases and 5 years in normal cases.


How much EMI do you have to pay?


You can decide the EMI you want to pay depending on your ability to pay and the tenure. The EMI will be lower if the tenure is higher. You can use our car loan EMI calculator to arrive at a comfortable EMI subject to terms and conditions operable at the time of borrowing.


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Are you Eligible for a Used Car Loan?


You are eligible for a used car loan from us if you satisfy the following conditions

  • You are a salaried individual with income of at least Rs 2.5 lakhs per annum
  • You are a self-employed person or a self-employed non-individual with income of at least Rs 2 lakhs per annum

We extend loans on the value of the used car under the loan to value ratio (LTV) principle. Here, the LTV is usually limited to a maximum of 90% but in special cases, it can go up to 100% in respect of select vehicle models and select category of salaried individuals employed in Super Cat A and Cat A company list. Before you decide to apply, check your car loan eligibility.


Steps to Get A Used Car Loan - Infographic


What are the documents required?


We seek copies of standard documents from you along with your application for a used car loan which includes


For salaried and self-employed persons

  • PAN card,
  • Proof of address
  • Proof of signature
  • Photograph
  • Any of Form 16 or salary slip or ITR
  • Three-month bank statement

For self-employed non-individuals

  • Ownership documents - registered partnership deed or certificate of incorporation of public and private limited companies including memorandum and articles of association
  • Commencement of business certificate
  • PAN card and proof of address
  • Photograph
  • ITR and audited balance sheet and profit and loss statement

Learn in depth about the documents required for a car loan before you choose to apply.


Why Tata Capital?


We provide you with the most liberal terms and conditions for used car loans. They include

  • Trusted brand from the most revered brand in India - Tata
  • Complete transparency in loan process, repayment and procedures
  • Second Hand Car Finance for salaried and self-employed individuals and self-employed non-individuals
  • Used Car Finance up to LTV of 100% on select vehicles
  • Tenure up to 7 years depending on the newness of the car
  • Very attractive car loan interest rates
  • Easy EMI calculations with our 3-step car loan EMI calculator
  • Four options for repayment with a 3-step car loan EMI calculator
  • Tie-up with Mahindra First Choice
  • Tie-up with reputed used car dealers and pre-owned car entities
  • Minimal paperwork
  • Quick approval and disbursement process
  • You can obtain a cash loan on your existing unencumbered car
  • You can transfer your existing second hand car loan to us and enjoy the many benefits we offer Repayment of Loan


Repayment of Loan


Our loan repayment options are among the best in the industry with four choices. You can choose the one that suits you the best. The options are as follows


Step Up EMI Option


In this option, you can increase the EMI every year.


Step Down EMI Option


In this option, you can reduce your EMI every year


Bullet Payment EMI Option


In this option you can prepay lump sum amounts periodically


Ballooning EMI Option


In this option, you can pay lower EMIs for all but one of the EMIs. The last EMI can be a large amount.



Buy a Pre-Owned Car at our Online Store


We have made choosing a used car very simple for you. We have tied-up with reputed dealers across the length and breadth of the country in all major cities and towns. We have created an online store for your benefit. You can choose from over 2000 used car dealers and over 17000 used car listings in our online used car store. We urge you to visit the online car store to make your choice and you will get a deal from us that you cannot refuse.


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Car Loans are brought to you by Tata Capital Financial Services Limited ("TCFSL") and are at its sole discretion. The indicative interest rates mentioned on the website only pertain to loans availed for cars which are for personal use. For loans for cars which are for commercial use, interest rates may differ. Interest rates may differ from time to time at the discretion of Tata Capital Financial Services Limited. Terms and conditions apply.

Important Information

Recently there have been cases of fraud being committed under the name of Tata Capital or Tata Finance. Customers are requested to read the attached advisory and be aware of misleading advertisements in the newspapers. Click here to read the advisory and be aware of misleading advertisements in the newspapers.

Click here to read the advisory