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Avail Instant Loan Against Car

Get an instant loan against car with Tata Capital and access funds quickly, without having to sell or stop using your vehicle. Secure a loan of up to Rs. 50 lakhs on a used car with a flexible tenure of up to 72 months and competitive interest rates. The application process is straightforward with minimal documentation and quick disbursal. In case you need extra funds, opt for a top-up loan on an existing car loan at affordable interest rates and manage your financial needs with ease. Apply today!

  • Loan on Vehicle Amount

    ₹1,00,000 – ₹50,00,000

  • Loan on Vehicle Tenure

    Up to 72 months

  • Loan on Existing Car Interest Rate Starting at

    10.75% 

    View Rates & Charges

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Eligibility Criteria for Loan Against Used Car

  • Age must be between 21 and 60

  • Minimum monthly salary of Rs 25,000

  • Minimum of one year of work experience

  • Age must be between 21 and 65

  • Business must be in existence for at least two years

  • Minimum income of 3 lakhs per annum

  • Either the applicant or the partner must have a minimum income of Rs. 3 lakhs per annum

  • Three months’ bank statements

  • ABB should be 0.5x the EMI

  • Minimum income of 3 lakhs per annum

  • Three months’ bank statements

  • ABB should be 0.5x the EMI 

    • The eligibility criteria are simple, thereby allowing you to make an informed decision easily. Furthermore, with various loan options available, you can choose one that suits your situation or explore alternatives too.

Documents Required for a Loan Against Car

To apply for a loan against car, you must meet the eligibility criteria. Once eligible, you need to submit the following documents to complete your application.
 

  • Identity Proof: Voter ID, Passport, Driving License, or Aadhaar Card
  • Income Proof: Last three months' bank statements, Income Tax Returns (ITR), or audited Balance Sheet and Profit & Loss Statements
  • Employment Proof: Salary slips for the last three months
  • Residence Proof: Voter ID, Passport, Driving License, or Aadhaar Card
  • Vehicle Documents: Copy of the Vehicle Registration Certificate
  • Signature Proof: Copy of your signature along with supporting proof
     

For more details, refer to our dedicated page for documents required for a loan against car.

How to Apply for a Loan On a Used Car?

    1

    Online Application

    You can easily apply for a loan against a used car online by filling out an application form on our website. This form includes your personal as well as financial information.

    2

    Document Submission

    Whether you're availing of loans against cars or top-up loans, you'll have to submit minimal documentation for the application process. The documents required will depend on your type of employment - salaried or self-employed.

    3

    Loan On existing car

    Upon submission of the application form and documents for a loan against used car, we will verify them to process your request.

    4

    Approval

    You will receive instant approval for your loan on a car once we successfully verify your loan application and find no discrepancies.

    5

    Loan Disbursal 

    After we approve your LAC or top-up loan on an existing car loan request, we will sanction your loan and disburse the amount directly to your bank account. That’s it! You can now use the loan amount to fund all your big-ticket expenses.

    Features of Loan Against Used Car

  • Flexible Tenure for a loan against used car

    You have the freedom to repay your Loan On a car over a period of 72 months.

  • Quick Processing for Loan Against Car

    You can get an instant loan against car with minimal paperwork and a quick online application process. You just need to fill out our application form, and we will take care of your loan request. If you’re looking for a short-term loan on used car, you can get access to credit instantly with Tata Capital.

  • Flexi EMI Options for Top-Up Loan on Used Car Loan

    Our Flexi EMI options allow you to repay your loan according to your convenience. You can choose a tenure that best fits your requirements to repay your loan against used car comfortably.

  • Competitive Interest Rates for a Loan On Used Cars

    Our interest rates are the best in the industry. We offer affordable rates and tools that will benefit you the most. You can also use our EMI calculator to calculate your potential EMIs in advance.

Loan Against Car Options Offered by Tata Capital

When it comes to securing a loan, your car can be your asset too. With Tata Capital’s car top-up loan, you can pledge your car as collateral and avail of an instant loan against car to meet your financial requirements. That’s right. Getting a loan on a used car has never been easier. Here’s how:

  • Refinance

    Car refinance enables you to avail of credit against your car. Through car refinancing, you can raise quick funds by pledging your car as collateral. Tata Capital allows you to Refinance a car top-up loan on an existing finance-free car to meet your personal expenses/working capital requirement.

     

    When you refinance a car top-up loan with Tata Capital, you can get up to 90% of your Car value.

  • CNC- car and cash

    CNC is a top-up car loan program where we take over the loan on your existing car and, in return, give you cash in hand to meet your personal or business needs. In this option, Tata Capital will fund up to 180% of the car value.

  • Multiplier

    A multiplier is a one-of-its-kind hybrid top-up car loan program where you can secure funds up to 250% of your Car Value. This will depend on a good CIBIL score and a clean repayment history.

  • Repurchase

    A used car, a pre-owned vehicle, or a second-hand car is a vehicle that has previously had one or more retail owners. Such cars are sold through a variety of outlets, including franchise and independent car dealers, rental car companies, leasing offices, auctions, and C2C transactions.

     

    Repurchase is a transaction where you buy a car from another customer or a used car dealer. In such a situation, Tata Capital will fund up to 100% of the car value. For premium segment cars, we fund up to 110% LTV. In this option, the car ownership will be transferred.

Pre-approved offers for new customers

Almost every category of loan has pre-approved offers. Whether it is personal loans or home loans, these pre-approved offers are major incentives for customers to take loans.
 

The good news is that, apart from existing customers, new customers can avail of pre-approved offers for used car loans. This can be useful for the following reasons:
 

  • Instant disbursal

  • Minimal documentation

  • Attractive interest rates

  • Better deals

  • Convenience

  • Improved financial planning

  • Higher approval rates

Customer Reviews & Testimonials

I’d like to commend Tata Capital for its professionalism and the convenience it offers through its wide branch-network. The fact that it maintains strong credit standards and holds a top-tier credit rating gives me confidence in engaging with the institution. Their range of loan products means I felt there was a solution aligned to my needs.

MOHIT CHAUHAN

Used Car Loan | 29 Oct, 2025

Really well trained customer care executives, They are well aligned with the philosophy of Tata group. Congrats team Tata capital..

M MAHEEN KANNU

Used Car Loan | 18 Oct, 2025

Amazing customer service , respectfully followed up with me until the issue was resolved and walked me through in each step.

MOHAMMED TARIQ ZEESHAN

Used Car Loan | 15 Oct, 2025

It was a great experience interacting with the help desk staff who assisted me. She was good at her job and didnt take much time in accepting my request and providing a solution.

JANVI R KAPAI

Used Car Loan | 08 Oct, 2025

Tata Capital is one of the leading financial companies in India. I'm happy about my financial relationship with you.

RISHABH GAUTAM

Used Car Loan | 26 Aug, 2025

Thanks, Tata Capital, for understanding. Your support means a lot. I’ll definitely recommend you to those in need.

NEELAM NITIN SONI

Used Car Loan | 07 Aug, 2025

All services are excellent.Thanks to Tata Capital and team.

SAMIR YUSUFBHAI KHOKHAR

Used Car Loan | 23 Jul, 2025

All things were explained perfectly and I am very satisfied with the answers.

PADIA PRATIK HARESHBHAI

Used Car Loan | 23 Jul, 2025

Excellent service, fastest time to loans and services. I am so happy with Tata Capital. Thank you.

DAMARLA VENKATA SATEESH

Used Car Loan | 12 Jun, 2025

Read All

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Know more about Used Car Loans
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Know more about Used Car Loans

Abhi office jaane mein no jhig-jhig. Turn your aspirations into reality and enjoy a hassle-free ride now. Upgrade your daily ride journey with easy used- car loans. Apni khwahish puri karo with Tata Capital used car loans!

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Eligibility and Documents required for Used Car Loan

Eligibility and Documents required for Used Car Loan

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FAQs about Loan Against Car (Loan on Car)

What is a loan against car (loan on car), and how does it work?

A loan against car is a secured loan that allows you to raise funds using your existing car as collateral. In this arrangement, you retain car ownership and usage rights, while the lender places a lien on the car’s title. You repay the loan through fixed EMIs, but if you fail to do so, the lender can repossess your vehicle. The funds received from a loan against car can be used for various personal and business purposes.

What are the benefits of a loan against car?

    The topmost benefits of securing a loan against car are:

    • Quick access to funds

    • Minimal documentation

    • Attractive interest rates

    • No need to sell the vehicle

    • Retention of the ownership and usage rights of the vehicle

    • Flexible repayment terms

    • No restrictions on the usage of the loan amount

Who is generally eligible for a loan against car from Tata Capital?

Here’s a checklist on the eligibility criteria for a loan against car from Tata Capital:

  • Age:

    • Salaried employees: Between 21 and 60 years

    • Self-employed professionals: Between 21 and 65 years

  • Nationality: Indian

  • Employment type: salaried employees, self-employed professionals, including sole proprietorships, partnership firms, private limited companies, and Hindu Undivided Family (HUF)

  • Minimum income:

    • Salaried individuals: Rs. 25,000 per month

    • Self-employed professionals: Rs. 3 lakhs per annum

  • Work experience:

    • Salaried individuals: Minimum one year of experience

    • Self-employed individuals: A business in existence for at least 2 years

  • CIBIL score: 700+

What is the minimum CIBIL score required for a loan against car?

Generally, you require a minimum CIBIL score of 700 to 750 to secure a loan against car. However, it varies between lenders. A high CIBIL score increases your loan approval chances.

How does my monthly income affect my loan against car eligibility?

Your monthly income indicates your repayment capacity. If you have a steady and sufficiently high income, it is proof that you will be able to make timely loan payments, and the lender’s risk is reduced. Generally, a larger loan amount and favorable loan terms are the benefits of a higher income.

What are the eligibility criteria for a loan against car for salaried individuals?

    Salaried individuals must meet the following eligibility criteria to get a loan against car:

    • Age: 21 years at the time of loan application and 60 years at the time of loan maturity

    • Minimum income: Rs. 25,000 per month

    • Work experience: The applicant must have at least one year of experience

    • CIBIL score: 700+

What are the eligibility criteria for a loan against car for self-employed individuals?

The eligibility criteria for a self-employed professional to secure a loan against car are:

  • Age: 21 years at the time of loan application and 65 years at the time of loan maturity

  • Minimum income: Rs. 3 lakhs per annum

  • Category: Sole proprietorships, partnership firms, private limited companies, and HUFs

  • Minimum turnover: Rs. 4.5 lakhs per annum

  • Asset-based borrowing: 0.5x the EMI

  • Nature of business: The company must have been in existence for at least 2 years and engaged in manufacturing, trading, or services

  • CIBIL score: 700+

What are Tata Capital’s current interest rates & charges for a loan against car?

    The loan against car at Tata Capital is available at an interest rate starting from 10.75% per annum. The other charges you need to pay on a loan against car are:

    • Processing fee

    • Documentation charges

    • Foreclosure charges

    • Loan cancellation charges

    • Statement of account charges

    • Valuation charges

    • Stamp duty

    • NACH/PDC charges

    • Part-prepayment charges

    • Penal charges

What is the minimum and maximum loan amount for a loan against car?

The minimum and maximum loan amount you can avail of from Tata Capital on a loan against car ranges from Rs. 1 lakh to Rs. 50 lakhs. The amount sanctioned to you will depend on your car’s valuation and individual application eligibility.

What is the minimum and maximum tenure for a loan against car?

The tenure for a loan against car is flexible. At Tata Capital, you can get a loan against car for a minimum tenure of 12 months and a maximum tenure of up to 72 months. A longer tenure means lower EMIs, while a shorter tenure means higher EMIs.

How does the loan against car EMI calculator help me?

A loan against car EMI calculator helps to estimate your monthly EMI based on varying loan amounts, interest rates, and loan tenures. It can easily help you arrive at a pocket-friendly installment amount.

What documents are generally required for a loan against car application?

The documents you must submit with your loan against car application are:

  • Age/identity proof: A copy of your Voter’s ID, passport, driving license, Aadhaar Card, or PAN Card

  • Address proof: A copy of your Voter’s ID, electricity bill, telephone bill, ration card, etc. 

  • Income proof: A copy of your salary slips, Income Tax Returns (ITR), balance sheet, profit & loss accounts, and savings and current account statements

  • Car-related documents: Registration certificate, insurance copy

  • Signature proof: A copy of your signature with proof

What documents are specifically required for salaried individuals applying for a loan against car?

Salaried individuals, specifically, must submit the following documents with their loan against car application:

  • Form 16

  • Salary slips for the past 3 months, with a minimum per-month salary of Rs. 25,000

  • Bank account statements, in which the salary is credited, for the past 3 months

  • Employment proof/ID Card

  • Income Tax Return (ITR)

What documents are specifically required for self-employed individuals applying for a loan against car?

The documents that self-employed professionals must specifically provide while applying for a loan against car are: 

  • Business proof: Registration certificate, GST certificate

  • Income Tax Returns (ITR) for the past two years

  • Audited balance sheets and profit & loss accounts for the past two years

  • Current account statement for the past 1 year, with a minimum monthly income of Rs. 3 lakhs

What is the application process for a loan against car?

Here’s the step-by-step application process for a loan against car:

  1. 1. Visit the ‘Loan Against Car’ page on Tata Capital’s official website. 

  2. 2. Fill out the online application form and submit the required documents.

  3. 3. Await car valuation and physical document verification. 

  4. 4. Allow the lender to perform a credit assessment. 

  5. 5. Receive the loan sanction letter. 

  6. 6. Get the funds credited into your bank account.

Is a car valuation required prior to loan application/approval?

    Yes, a car valuation is necessary before approving a loan application because it helps determine the car’s current market value to arrive at the loan-to-value (LTV) ratio and loan amount you’re eligible to secure.

How long does it take for a loan against car approval and disbursal?

    A loan against car approval usually takes 24 to 48 hours after the successful submission of the application. The process is faster if you’ve applied online and submitted all the required documents correctly. You will receive a loan sanction letter, mentioning the loan terms, once the lender approves the loan. Loan disbursement takes around 24 to 36 hours post approval.

What is the minimum and maximum age of the car eligible for a loan against car?

Your car’s value and the lender’s policies determine the loan amount you can obtain. Generally, the maximum age limit for a vehicle is 10 years. Some lenders may sanction loans on 12-year-old cars.

Who can be a co-applicant for a loan against car?

You can make your immediate family members, like your spouse, parents, or siblings, a co-applicant for a loan against car. Adding a co-applicant increases your chances of loan approval and helps get favorable loan terms.

Is a guarantor required for a loan against car?

No. You don’t need a guarantor for a loan against car since your car already serves as collateral. However, if you are applying as an NRI or your credit score, income, or overall financial profile doesn’t fulfill the lender’s eligibility criteria, you may have to provide a guarantor.

Can I pre-pay or foreclose my loan against car? Are there charges?

Yes, you can pre-pay or foreclose a loan against car. At Tata Capital, if you foreclose the loan within 12 months of the date of the first disbursement, you must pay 6% of the principal outstanding at the time of foreclosure. The rate changes to 5% if you pre-pay or repay the loan amount after 12 months from the date of the first disbursement.

Can I reduce or change my EMI?

It is possible to reduce or change your EMI through part-prepayments or balance transfers. You can also negotiate the interest rates before availing of the loan by adding a co-applicant. Tata Capital offers specific restructuring options, subject to terms and conditions.

What are the payment options available for a loan against car?

The common methods to pay your EMIs include:

  • Auto-debit (NACH/ECS)

  • Debit Card

  • NetBanking

  • UPI

  • E-wallets

Visit the lender’s website to explore the various options.

Can I apply for a top-up loan on my existing loan against car with Tata Capital?

No, you cannot apply for a top-up loan on your existing loan against car. However, there are other financing options Tata Capital offers on an existing finance-free car. These include Refinance, Car and Cash (CNC), Multiplier, or Repurchase. These car loan programs help you meet your personal expenses/working capital requirements.

Can I continue using my car after availing a loan against car from Tata Capital?

Yes. A loan against car doesn’t require you to surrender your vehicle to the lender. You continue to own it and can use it as per your requirements. The lender places a lien/hypothecation on the vehicle’s title to secure its risk. In the event that you fail to repay the loan, the lender has the potential to repossess your car.

Are there any specific cars or models that are not eligible for a loan against car?

Cars older than 12 years aren’t eligible for a loan against car. Moreover, you cannot avail of a loan against car on commercial cars, yellow plate vehicles, and car models that are no longer in production. Do check the specific terms with your lender before applying.

What are the payment options available for a loan on a used car?

You can pay your loan on a used car through the following options:

  • Visit the official Tata Capital website or mobile app

  • Deposit a cheque at the nearest branch

You can also pay via e-wallets, UPI, or NetBanking facilities.

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