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Get a Used Car Loan Up to ₹50 Lakhs* for Your Pre-Owned Car

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 90% 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

    10.49%

    View Rates & Charges

Calculate Used Car Loan EMI

Loan amount

₹
₹75,000 ₹35,00,000

Loan duration

1 Years 6 Years

Loan duration

12 Months 72 Months

Rate of interest

%
10% p.a 19% p.a

Monthly EMI

  • Total Amount Payable

    0*

  • Total Interest Payable

    0*

Total Amount Payable

Total Interest Payable

Apply Now

Used Car Loan Interest Rates , Fees & Charges


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 10.49% 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
Valuation charges Rs. 750 (per valuation)
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.

Eligibility Criteria for Pre-Owned Car Loan

Tata Capital's used car loan is accessible to salaried and self-employed applicants alike. Detailed criteria for each segment:
 

  • Age: 21 to 60 years

  • Minimum monthly income: ₹25,000 (may be higher in metros)

  • Employment stability: 1+ year at current job, 2+ years total experience

  • CIBIL score: 700+ preferred

  • Age: 25 to 65 years

  • Minimum annual income: ₹3 lakh

  • Business vintage: Minimum 3 years

  • CIBIL score: 700+ preferred

  • ITR: Filed for last 2-3 years

  • Vehicle age at maturity: Maximum 10 years

  • Vehicle type: Cars from approved OEMs

  • Vehicle condition: Roadworthy with valid RC and insurance

Documents Required for Used Car Finance

Documentation is organised by applicant type. Both salaried and self-employed have similar KYC requirements but differ on income proof.
 

Documentation for Salaried Individuals: The documents required for a second-hand car loan vary depending on your employment type.

 

Category Documents
Identity Aadhaar, PAN
Address Aadhaar, utility bill, or passport
Income Latest 3 months' salary slips, Form 16 for 2 years
Bank statement Last 3-6 months of salary account
Employment Employment ID or offer letter
Vehicle RC copy, insurance, valuation report

Documentation for Self-Employed Individuals

Category Documents
Identity Aadhaar, PAN
Address Aadhaar, utility bill, or business address proof
Income ITR for last 2-3 years, audited financials
Bank statement Last 6-12 months of primary account
Business GST registration, business registration certificate
Vehicle RC copy, insurance, valuation report

How to Apply for Used Car Loan?
 

Tata Capital offers two application routes for used car loans. Choose the option that suits you best.

 

    • Visit tatacapital.com or the mobile app.

    • Complete the application with personal, employment, and vehicle details.

    • Upload KYC, income proof, and vehicle documents digitally.

    • Complete e-KYC via Aadhaar OTP.

    • On approval, sign the loan agreement digitally and funds are disbursed to the seller.

     

     

     

    • Visit a Tata Capital branch or partner dealer with your documents and vehicle details.
    • A relationship manager will complete the application, verify documents, initiate valuation of the vehicle, and coordinate with the seller for smooth disbursement.

Features and Benefits of a Used Car Loan

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 10.49%* 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

  • Flexi EMI Plans: Choose from standard or step-up EMIs to suit your cash flow

How to Calculate Used Car Loan EMI?

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. 

What our customers say about us

I had a great experience with the service. The team was professional, responsive, and very helpful throughout the entire process. Everything was handled smoothly and on time. The quality of work exceeded my expectations, and I really appreciate the attention to detail and customer support. Keep up the excellent work!

BADAL BADAL

Used Car Loan | 15 May, 2026

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

Read All

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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

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FAQs on Used Car Loan

What is a used car loan, and how does it differ from a new car loan?

A used car loan is a special type of loan that helps you purchase a pre-owned or second-hand car. The loan is typically repaid in fixed installments, or EMIs, over a pre-determined tenure.

On the other hand, a new car loan is designed specifically for purchasing a brand-new vehicle. Additionally, used car loans usually come with higher interest rates, shorter tenures, and stricter eligibility criteria.

Who is eligible for a used car loan from Tata Capital?

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

What are the current used car loan interest rates and charges at Tata Capital?

At Tata Capital, we provide used car loans at highly competitive interest rates, starting from just 10.49% 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

What documents are required for a used car loan application?

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

What is the application process for a used car loan?

With Tata Capital, you can apply for a used car loan online or offline. To apply offline, you can visit your nearest Tata Capital branch and get in touch with one of our representatives. To apply online, follow these steps:

 

  1. 1. Go to the “Used Car Loan” section on our website and click on “Apply Now”.

  2. 2. Fill out an online application form.

  3. 3. Upload the required documents.

  4. 4. Wait for the verification process to be completed.

  5. 5. Upon successful verification of documents, the loan will be approved, and the amount will be disbursed within 24 to 36 hours.

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

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.

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

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.

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

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.

What is the maximum age of the used car eligible for a loan?

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).

Can I transfer my existing used car loan balance to Tata Capital?

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.

How does the used car loan EMI calculator help me?

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.

Can I have a co-applicant for a used car loan?

    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.

Is a down payment required for a used car loan?

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.

Can I pre-pay or foreclose my used car loan?

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

How is the value of a used car determined for a loan?

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.

What are the benefits of taking a used car loan from Tata Capital?

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 10.49% 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

Can I get a used car loan for commercial vehicles?

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.

What is the impact of my CIBIL score on my used car loan application?

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.

What kind of used cars are generally not eligible for a loan?

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

What happens after my used car loan is approved?

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. 1. Sign the loan agreement letter.

  2. 2. The loan amount is disbursed to the dealer or seller.

  3. 3. A new RC is prepared in the buyer’s name with a hypothecation endorsement.

  4. 4. Your vehicle is ready for delivery.

Do I need to provide any collateral or a guarantor for a used car loan from Tata Capital?

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.

Will my used car be hypothecated to Tata Capital if I take a loan?

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.

What are the available payment options for used car finance?

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.

Can NRIs apply for second-hand car loans?

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.

What is loan refinancing on used cars?

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.

What happens if I miss EMI payments on my used car loan?

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.

Can I get a loan for cars older than 10 years?

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.

Where can I find vehicle loan EMI calculator for used car loans?

The used car loan EMI calculator is available on tatacapital.com under the Used Car Loan section, and also on the Tata Capital mobile app for quick access.

Are interest rates for new vehicles lower than used vehicles?

Yes, typically. New car loans usually carry lower interest rates than used car loans because the vehicle depreciates over time, which increases the lender's risk on pre-owned vehicles.
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