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What is a 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.

In case of a Personal Loan, where the amount is approved and advanced without collateral, your CIBIL score becomes a critical eligibility criterion. Typically, a CIBIL score above the 700 mark is considered good and attracts easy approval.

If you don't know your Credit Bureau Score and are wondering, you can visit the below link for a free bureau report. We got you covered!

Link: https://www.tatacapital.com/check-credit-score.html 

It is a very convenient way to finance the purchase of a second-hand car. Availing of finance for used cars helps you pay for your favourite car without straining your finances.

It is a smart and economical way to fund your purchase. With Tata Capital's used car finance, you can fund anything from hatchbacks to SUVs to premium sedans. Avail of up to 95% of your car value from Tata Capital. Apply today and enjoy flexible EMI repayment options and quick disbursal of pre-owned car finance.

Don't let a lack of funds stop you from bringing home your dream car. Get finance up to ₹50 lakhs with Tata Capital. Our loans also come with minimum documentation and affordable interest rates. Your favourite Car is just a click away.

Used Car Loan by Tata Capital

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 Car 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 at

    14.99% onwards

Pre-Owned Car Loan Features

Apply for a pre-approved car loan online with Tata Capital and enjoy the following pre-owned car loan features-

Flexible repayment options

Without the presence of a rigid repayment process, you can easily repay your loan through convenient repayment options. There are multiple options available for consumers to choose from, which makes it easy to repay your second-hand car loan. Options like ECS, post-dated cheques and even online payments are available for flexible EMI payments.

Competitive interest rates

At Tata Capital, we strive to bring you the best loan experience. So we offer some of the best interest rates in the market. You can avail a used car loan with Tata Capital at competitive interest rates starting at 14.99%. This can help you save even more money as interest rates are less than what you would expect generally. Another advantage is that you can get a pre-approved car loan without affecting your credit scores.

Simple documentation

Most procedures for loans have lengthy documentation practices that can be complicated. This would not only increase the time of availing a loan but also cause errors when processing documents. Tata Capital, however, has simple, minimal documentation requirements along with speedy processing to help you get access to funds instantly. We only require certain documents, and once you submit them, your loan will get processed quickly.

Fast processing times

Approving and processing loans is generally a time-consuming process. From gathering all the documents to processing your loan, it can take a week’s time or more in certain cases. Luckily, when you apply for pre-approved car loans online, you can get your loans processed quickly. At Tata Capital, we ensure that your loans are processed quickly and approved in no time. 

Easy to meet eligibility criteria

Tata Capital has easy-to-meet eligibility criteria. We have different criteria for different entities, such as salaried individuals or self-employed individuals. Once you meet our eligibility criteria, all you have to do is visit our website and submit the used car loan application along with the required documents to get your loan in no time. We cover the criteria for the different types of entities that can avail of loans. 

Whether you are a salaried individual, a self-employed person, or a professional, you can avail of a quick used car loan with Tata Capital hassle-free.

High loan amount

Need a higher loan amount for your dream car? Fret not. Tata Capital offers a generous used car loan amount of up to Rs. 50 lakhs for you to shop around and get home your favourite car easily.

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Avail TATA Capital loans directly from WhatsApp

Application Process for Pre-Owned Car Loan

1

Online Application

Apply from the comfort of your house. Fill out and submit the application form online.

2

Explore dealership

Walk into a used car dealership associated with Tata Capital.

3

Document Submission

Tata Capital’s representative at the dealership will help you submit the required second-hand vehicle finance documents.

4

Scrutiny and Verification

After you submit the loan application and documents, we will verify the information.

5

Approval

Once we successfully verify your documents, we will approve and sanction your request.

6

Drive Away

Receive your second-hand car finance amount directly in your bank account and take home your desired second-hand car.

Available payment options

Available Payment options

    Pay Online

    You can visit our website or use your mobile phone to pay your EMIs online anytime and anywhere.

    Drop a Cheque

    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.

6 Reasons to Choose Us for Taking a Second-hand Car Loan

  • Minimum paperwork

    With Tata Capital, you don't need to go through lengthy paperwork to get used car finance. Moreover, you can apply online for greater convenience.

  • Flexible Repayment

    Our flexible loan allows you to select a repayment plan at your convenience. You can choose from a range of options like ECS, post-dated cheques, and online payment to repay your loan.

  • Competitive interest rates

    We only want to deliver the best experience to our customers. This is why our interest rates are the best in the industry. Avail of the best interest rates in the market.

  • High loan amount

    With Tata Capital, you can avail of second-hand car finance as high as Rs. 50 lakhs.Avail of a car loan for used cars as high as Rs. 50 lakhs. Buy your desired second-hand car on EMI with Tata Capital.

  • Minimum documents

    We ask for minimal documents while processing your used car finance request. Only share important information. We ask for minimal documents while processing your pre-owned car finance request.

  • Instant online approval

    After we successfully verify your information, you will receive instant approval for your used car finance request through our secure platform. After we receive and verify your documents, you will get instant approval through our secure platform.

  • Repayment

    Enjoy flexible repayment options for your loan. Choose from different options like ECS, post-dated cheques, and online payment.

  • Competitive interest rates

    Avail of the best interest rates in the market.

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 Get a Used Car Loan?

Looking to get a second-hand car on EMI? Apply instantly with these 4 simple steps-

Simple application form

Apply for used car financing by filling out a simple application form online or offline.

Minimal Documentation

Submit or upload the right documents for your used car loan online approval.

Verification

We will verify your application and eligibility for the loan.

Loan Sanctioning and Disbursal

After successful verification, we will sanction your loan and disburse the amount directly to your bank account within 24 to 36 hours from document submission.

What are the Eligibility Criteria?

You can get a loan if you meet the following eligibility criteria –

  • Age :

    You must be between 21 and 60 years if you’re a salaried individual and between 21 and 65 years if you’re a self-employed individual to apply for an old car loan.

  • Income :

     Your minimum monthly income must be Rs. 20,000 if you’re a salaried individual and Rs. 2 lakhs per year if you’re a self-employed individual.

  • Stability of Work :

     You must have a stable employment status for a minimum of 1 year and a stable business status for a minimum of 3 years.

Eligibility criteria:

Eligibility criteria:

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.

Eligibility criteria:

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 must meet the following used car loan eligibility criteria –

  • You must be the proprietor.

  • You must be between 21 and 65 years of age.

  • The business must have been operating for at least the past three years.

  • You must have a minimum income of Rs. 2 lakhs per annum.

Eligibility criteria:

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

  • You must have a telephone or mobile connection

Eligibility criteria:

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 used car loan before applying.

  • Your income must be ₹2 lakhs per annum

  • You must have a landline connection at the office

  • You must have the last 3 months' bank statements

  • ABB should be 0.5 times EMI

What Are theDocuments Required?

What Are theDocuments Required?

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

  • Photo Identity Proof : Copy of Voter’s ID/Driving License/Aadhaar Card/PAN Card/Passport

  • 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 : Copy of Ration Card/Passport/Electricity Bill

  • Copy of Vehicle Registration Certificate

  • Copy of telephone or phone bill

What Are theDocuments Required?

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

 

  • Photo Identity Proof : Aadhaar Card/Driving License/PAN Card/Passport/Voter’s ID

  • Copy of your signature with signature proof

  • Address Proof : Copy of Utility Bill/Bank Statements/Property Registration documents/Property Tax Receipt/Voter’s ID

  • Income Proof : Copy of Income Tax Returns (ITR), audited Balance Sheet, and Profit and Loss Statements along with last three months’ Bank Statements

  • Copy of telephone or mobile bill

What are used car loan interest rates?

In case of a Personal Loan, where the amount is approved and advanced without collateral, your CIBIL score becomes a critical eligibility criterion. Typically, a CIBIL score above the 700 mark is considered good and attracts easy approval.

If you don't know your Credit Bureau Score and are wondering, you can visit the below link for a free bureau report. We got you covered!

Link: https://www.tatacapital.com/check-credit-score.html 

The second-hand car loan interest rate is the rate at which you will have to pay interest on the principal loan amount. It is a percentage of your total loan amount.

What are the EMI Options Available?

When you purchase a second-hand car on EMI with Tata Capital, you get the option of two EMI plans- 

Standard EMI

This EMI plan offers a fixed loan principal and interest rate throughout the loan tenure. As a result, the EMI will also remain the same. You can choose this option if you have a consistent monthly income that will not change in the near future.

Structured EMI

This EMI plan allows you to customize 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. This repayment method is ideal if you expect a rise in income in the near future.

How to apply?

How to apply?

With Tata Capital, you can avail of an old car loan either online or offline.

  • Visit your nearest Tata Capital branch.

  • Fill out the application form and submit the required documents.

  • A representative will call you to go over your application and documents.

  • It will take a few business days to process your old car finance application.

  •  

    Make sure you check eligibility for a used car loan before applying.

How to apply?

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.

  • Produce 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 used car loan before applying.

How to make car loan application easy?

Availing of finance for used cars? Here are some tips you can follow for a smooth application process-

Conduct thorough market research

Compare eligibility conditions, interest rates, processing time, fees, and charges of different lenders to find the best deal before applying.

Apply online

Apply for used car loans online to reduce your processing time and to get quick loan approval.

Prepare the documents

Keep all relevant documents for your application ready to avoid any last-minute hassle.

Use an EMI calculator

Use an online EMI calculator to get a rough estimate of your potential EMIs.

Choose the lender carefully

Finally, 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 car?

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

  • Do a basic hygiene check of the car and the owner

    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

    Take the car for a test drive on narrow streets, U-turns, highways, and rocky roads to check its performance.

  • Have a mechanic inspect the car

    Have a mechanic inspect major systems of the car like transmission, engine, etc. If you find any technical issues, you can ask the owner to fix them before striking a deal.

  • Review the car papers properly

    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

    Finally, fill out Form 29 and Form 30 issued by RTO to transfer the RC to your name. Both you and the seller must sign this form. It usually takes 40 to 45 days for the RTO to send the copy of RC in your name.

  • Once you find the car satisfactory, apply for second-hand car finance.

What Factors Affect Your Used Car Loan Eligibility?

Your used car loan eligibility is based on many factors. These include-

Income

The higher your monthly income, the higher will be your eligibility.

Credit Score

A high credit score, preferably 750 or above, will increase your used car loan eligibility and vice-versa.

Outstanding Loan

An unpaid loan can make you ineligible to avail of a loan as opposed to a healthy repayment pattern.

Work Stability

Having a stable source of income increases your loan eligibility. If you frequently change jobs or have irregular business ROI, lenders may reject your application.

What is the Interest Rate?

After determining your used car loan eligibility, check for the interest rate that you can afford. The interest rate is the rate at which you have to pay interest on the loan amount over a fixed tenure. Tata Capital offers the best interest rates for second-hand car purchases, starting at just 14.99%.

In case of a Personal Loan, where the amount is approved and advanced without collateral, your CIBIL score becomes a critical eligibility criterion. Typically, a CIBIL score above the 700 mark is considered good and attracts easy approval.

If you don't know your Credit Bureau Score and are wondering, you can visit the below link for a free bureau report. We got you covered!

Link: https://www.tatacapital.com/check-credit-score.html 

How to Calculate EMI using Used Car Loan Calculator?

An EMI calculator helps you calculate your potential EMIs instantly. Just enter the Principal Amount, Rate of Interest, and Loan Tenure in the EMI calculator, and the calculator will automatically calculate the monthly EMI value within seconds.

In case of a Personal Loan, where the amount is approved and advanced without collateral, your CIBIL score becomes a critical eligibility criterion. Typically, a CIBIL score above the 700 mark is considered good and attracts easy approval.

If you don't know your Credit Bureau Score and are wondering, you can visit the below link for a free bureau report. We got you covered!

Link: https://www.tatacapital.com/check-credit-score.html 

How to Improve Your Second-Hand Car Loan Eligibility?

You can improve your second-hand loan eligibility in the following ways –

  • Opt for a higher down payment

    Down payment is the amount of money you must pay for your car upfront. By making a high down payment, you can reduce your loan amount and improve your chances of getting a loan.

  • Maintain a good CIBIL score

    For higher used car loan eligibility, check your credit score. It reflects your credit history and repayment ability. To increase your chances of getting a loan, you must have a credit score of 750 or above. For this, you must repay debts, credit card dues, etc. on time and check your credit record for discrepancies.

  • Choose a suitable loan tenure

    You have higher eligibility if you select shorter loan tenures. However, this means you'll have to pay higher EMIs, but the interest outgo is less. You can adjust the loan tenure using an online EMI calculator

  • Opt for a Willing Co-Applicant

    You can opt for a co-applicant with a good CIBIL score and stable income. The co-applicant must be your spouse, immediate family members, or any blood relative.

What our customers say about us

I am totally satisfied from your service. Thank you for funding me when I required.

AMMUTY RADHAKRISHNA ANANTHNAG

Used Car Loan | 02 May, 2024

I appreciate your service and cooperation during the COVID period, especially for providing sufficient time to pay the balance.

VISHNU INDUSTRIAL PRODUCTS

Used Car Loan | 25 April, 2024

I've had a great opportunity to obtain a loan from Tata Capital without any delays or issues. I'll definitely refer my friends or relatives if they're interested.

K RAMESH BABU

Used Car Loan | 13 April, 2024

I am highly obliged by the resolution provided by you people. Really appreciate your help and cooperation. Thanks a lot. God bless you.

DOKADIA MOHD ZAHEER ABDUL SAMAR

Used Car Loan | 13 April, 2024

It's great Experience with the Tata Capital as you solved my issues on time. So I am happy

HANUMAN SAHAY MEENA

Used Car Loan | 26 March, 2024

The executive provided exceptional assistance through the Tata Capital helpline. Her professionalism and expertise were evident from the moment I reached out for assistance. Not only did she patiently address all my queries, but she also went above and beyond to ensure that I fully understood the options available to me. Her friendly demeanor and willingness to help made the entire process smooth and stress-free. Thank you for the outstanding service!

PRILSON ANTONY

Used Car Loan | 07 March, 2024

I’m very much happy with the service of Tata capital thanks

ARUN .

Used Car Loan | 29 January, 2024

Thanks a ton for the quick service and response to close matter i really appreciate , keep the good work . All the very best and really Tata Capital would be pride organisation to have you.

WONDER PRODUCTS CO

Used Car Loan | 27 January, 2024

All the employees of Tata Capital work very well. very good service.

RAM KHILAWAN RATHORE

Used Car Loan | 15 January, 2024