How does a used car loan work?

Apply for Loan: Submit an application to a lender.Approval: Lender evaluates and approves your loan based on your credit and the car’s value.Down Payment: Pay a portion of the car’s cost.Disbursement: Lender pays the seller the remaining amount.EMIs: Make monthly payments over the loan tenure.Ownership Transfer: Update the car’s registration with the RTO.Final Payment: Upon full repayment, receive a no-objection certificate (NOC) from the lender.

How do I approach Tata Capital for a second-hand car loan?

You can apply for aused car loan financingwith Tata Capital in the following ways – Apply online through our website.Email our customer support team.Call us on our toll-free number – 1860 267 6060.Take the help of our virtual assistant, TIA.Visit a nearby branch and talk to our lending experts.

What are the different types of Charges that can be levied in a pre-owned car loan?

Processing Fee Minimum 1.75% of loan amountor Rs 4000 whichever is higher (Term Loan)2% of Limit sanctioned (Overdraft) LTV 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 a loan up to 95% for purchase of used car and upto 200% on your exisiting car. What's more? You get to enjoyflexible EMI repayment optionsand quick disbursal of funds which makes Tata Capital the best choice for taking car loans for used cars.

When Can You Take a Used Car Loan?

You can apply for a car loan for used cars for the following conditions-Personal use :Using public transportation is not always feasible. Owning a car has become a necessity to commute comfortably from one point to the other without depending on someone else. You can avail of a used car loan to buy a car for personal use. This can include commuting for daily chores or emergencies like getting a loved one to the hospital on time.Business use :If you frequently find yourself on the move to meet clients or make deliveries, buying a second-hand car will make the commute more convenient. A used car loan financing will help you make this purchase easily.

How to make used car loan application easy?

Here are some tips you can follow for a smooth application process-Compare eligibility conditions, interest rates, processing time, fees, and charges of different lenders to find the best deal before applying.Apply for used car loans online to reduce your processing time and to get quick loan approval.Keep all relevant documents for your application ready to avoid any last-minute hassle.Use an online EMI calculator to get a rough estimate of your potential EMIs.Look for a lender who is credible and transparent before you apply. Tata Capital assures you of only the best deals, making us your best option to secure finance for used cars.

What are the important things to do when buying a pre owned car?

Before you buy a second-hand car on EMI, make sure you follow this checklist-Carry out a basic hygiene check of the car, its history, and its owner. Finalize the car only if it's in satisfactory condition.Take a test drive to check the car’s performance.Have a mechanic inspect the car because if you find any technical issues, you can ask the owner to fix them before striking a deal.Make sure all car documents are accurate and updated. This includes the original invoice, Pollution under Control certificate (PUC), RC book, insurance papers, etc.Transfer the RC to your name by filling out Form 29 and Form 30 issued by RTO to transfer the RC to your name.

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Used Car Loan

Used Car Loan

Loan Up to ₹50 Lakhs* | Quick Approval | Tenure Up to 72 Months | Minimum Documentation

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Get Used Car Loan Up to ₹50 Lakhs*

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 makes for 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%

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Calculate Used Car Loan EMI

Loan amount

₹

₹75,000 ₹35,00,000

Loan duration

1 Years 6 Years

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

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Used Car Loan Interest Rates

At Tata Capital, we customise car loans for used vehicles to suit your financial needs. Enjoy transparent terms and competitive rates starting from just 10.75%* per annum.

Processing Fees: Up to 2.95% + GST
Documentation Charges: Up to Rs. 1999
Post Disbursal Document Charges: ₹500 + GST
Loan Tenure: 12 to 72 months

Eligibility Criteria for Pre-Owned Car Loan

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-

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. 20,000.
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. 2 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 ₹2,00,000 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 ₹2 lakhs per annum
You must have the last 3 months' bank statements
ABB should be 0.5 times EMI

Documents Required for Used Car Finance

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 last three months’ Bank Statements

How to Apply for Used Car Loan?

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.

Features and Benefits of Used Car Loan

Tata Capital offers a well-structured financing solution for pre-owned vehicles tailored to modern buyer expectations. Our car loans for older cars combine affordability with flexibility, making ownership practical and stress-free.

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

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

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FAQs on Used Car Loan

Buying a second-hand car has multiple benefits. It is not only easy on the pocket but has a slower depreciation rate and offers tension-free drive 24x7. But what if your desired pre-owned car does not fit your budget? This is where used car loan financing comes in.

It is a smart and economical way to fund your purchase. With Tata Capital’s used car finance, you can finance anything from hatchbacks and SUVs to premium sedans. You can avail up to 95% of the car’s value with Tata Capital. Apply today to benefit from flexible EMI repayment options and quick disbursal.

The processing time for a used car loan at Tata Capital is designed to be quick and hassle-free. After you submit all the required documents, the loan disbursal typically takes between 24 to 36 hours. This quick turnaround ensures you can drive home your dream car without unnecessary delays, making the process smooth and efficient.

You can repay your loan through ECS, Direct debit, and post-dated cheques drawn on "Tata Capital Limited".

With Tata Capita, you can avail of a Loan starting from ₹ 1,00,000/- up to ₹ 50,00,000/- depending on your eligibility.

Apply for Loan: Submit an application to a lender.
Approval: Lender evaluates and approves your loan based on your credit and the car’s value.
Down Payment: Pay a portion of the car’s cost.
Disbursement: Lender pays the seller the remaining amount.
EMIs: Make monthly payments over the loan tenure.
Ownership Transfer: Update the car’s registration with the RTO.
Final Payment: Upon full repayment, receive a no-objection certificate (NOC) from the lender.

Loan tenure is the period within which you need to repay your loan, including the interest. Tata Capital's maximum tenure is 72 months or 6 years.

A co-applicant is a person who applies for a loan along with the main borrower. They will be equally responsible for the loan repayment in case of any default by the primary borrower. If you want to improve your loan eligibility, you can have a co-applicant apply along with you.

The following are the acceptable co-applicants for a second-hand car loan –

Spouse
Family member
Blood relatives

No, you don't need any additional collateral or security for the loan. The car for which you take the loan is itself the collateral that is needed, hypothecated to Tata Capital documentation.

You can apply for a used car loan financing with Tata Capital in the following ways –

Apply online through our website.
Email our customer support team.
Call us on our toll-free number – 1860 267 6060.
Take the help of our virtual assistant, TIA.
Visit a nearby branch and talk to our lending experts.

To determine your used car loan eligibility, check your current and potential income. You will need to repay your loan in Equal Monthly Instalments or EMIs. Income plays a key role in determining how much money you can spend each month to pay your loan EMI. The higher your income, the higher will be your eligibility and vice-versa. A high income also makes you eligible to borrow a higher loan amount.

Processing Fee	Minimum 1.75% of loan amount or Rs 4000 whichever is higher (Term Loan)2% of Limit sanctioned (Overdraft)
LTV	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 a loan up to 95% for purchase of used car and upto 200% on your exisiting car. 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.

NOC will be dispatched to your registered Address within 5 working days from the date your loan closure.

In case you need us to send the NOC on any other address or at your nearest branch, you can contact us or visit the branch.

Your CIBIL score will automatically get updated after a month of your loan closure.

Yes, we at Tata Capital allow you to apply for pre-approved car loans online. You can apply for the loan following these steps-

Step 1: Fill out the online pre-owned car loan form to start with the application process.

Step 2: Visit any Tata Capital-affiliated used car dealership.

Step 3: Upload the necessary documents.

Step 4: Our representatives will verify the documents.

Step 5: After we complete the verification, the loan amount will be sanctioned and disbursed directly to your bank account.

The personal loan provided by Tata Capital is an unsecured term loan that you can use to fulfil all your personal needs, including buying a car.

However, if you want to take out a bigger loan or want a loan with a lower interest rate, we suggest opting for our pre-owned vehicle loan. You can buy any used car, including a hatchback, a premium sedan, or an SUV, without dipping into your savings with a Tata Capital used car loan.

Our pre-owned car loan features include loan amounts covering up to 95% of your car value with a flexible repayment tenure of 12-72 months.

You can apply for personal and used car loans online or offline with us.

You can apply for a used car loan online or offline in Mumbai or any state of India by following these steps.

Steps for online application-

Step 1: Fill out the online second-hand car loan form to start with the application process.

Step 2: Visit any Tata Capital-affiliated used car dealership.

Step 3: Upload the necessary documents.

Step 4: Our representatives will verify the documents.

Step 5: After we complete the verification, the loan amount will be sanctioned and disbursed directly to your bank account.

Steps for offline application-

Step 1: Visit the nearest branch of Tata Capital.

Step 2: Fill out the used auto loan application form. Submit the form along with the required documents.

Step 3: A Tata Capital representative will connect with you over a call to review your application and documents.

Step 4: We will disburse the loan amount to your account after verification.

Down payments for pre-owned car loans are not a mandate at Tata Capital.

But we suggest you make a down payment if you want a pre-approved car loan without affecting your credit score. This is because it significantly reduces the loan amount and your loan repayment duration, EMIs and total interest. So, you can repay your loans without impacting your savings, making you less likely to default on them and helping you maintain your credit score.

You can apply for a car loan for used cars for the following conditions-

Personal use : Using public transportation is not always feasible. Owning a car has become a necessity to commute comfortably from one point to the other without depending on someone else. You can avail of a used car loan to buy a car for personal use. This can include commuting for daily chores or emergencies like getting a loved one to the hospital on time.
Business use : If you frequently find yourself on the move to meet clients or make deliveries, buying a second-hand car will make the commute more convenient. A used car loan financing will help you make this purchase easily.

When you purchase a second-hand car on EMI with Tata Capital, you get the option to choose between Standard EMI and Structured EMI plans. The standard EMI plan offers a fixed loan principal and interest rate throughout the loan tenure. As a result, the EMI will also remain the same.

On the other hand, the structured EMI plan allows you to customise your second-hand car loan EMI. With this option, you will pay lower EMIs during the initial months of the loan tenure and gradually increase them over time.

Here are some tips you can follow for a smooth application process-

Compare eligibility conditions, interest rates, processing time, fees, and charges of different lenders to find the best deal before applying.
Apply for used car loans online to reduce your processing time and to get quick loan approval.
Keep all relevant documents for your application ready to avoid any last-minute hassle.
Use an online EMI calculator to get a rough estimate of your potential EMIs.
Look for a lender who is credible and transparent before you apply. Tata Capital assures you of only the best deals, making us your best option to secure finance for used cars.

Before you buy a second-hand car on EMI, make sure you follow this checklist-

Carry out a basic hygiene check of the car, its history, and its owner. Finalize the car only if it's in satisfactory condition.
Take a test drive to check the car’s performance.
Have a mechanic inspect the car because if you find any technical issues, you can ask the owner to fix them before striking a deal.
Make sure all car documents are accurate and updated. This includes the original invoice, Pollution under Control certificate (PUC), RC book, insurance papers, etc.
Transfer the RC to your name by filling out Form 29 and Form 30 issued by RTO to transfer the RC to your name.

Your used car loan eligibility is based on many factors including, income, credit score (preferably 750 or above), outstanding loans, and work stability.

You can improve your second-hand loan eligibility by opting for a higher down payment which will reduce your loan amount, maintaining a good CIBIL score, choosing a suitable loan tenure based on your affordability, and opting for a willing co-applicant with a good credit score.

You can visit our website or use your mobile phone to pay your EMIs online anytime and anywhere. You can also make EMI payments for your car loan with a cheque. All you need to do is visit the nearest Tata Capital branch, write a cheque, and drop it off at your convenience.

Here’s why 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 best interest rates in the market.
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.