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What is a Used car loan EMI?

EMI is a short form for Equal Monthly Instalments. When you take a used car loan, you need to pay a certain amount every month towards the repayment over a fixed tenure. This is called your EMI and includes the principal amount as well as the interest. This helps you distribute the amount over a period that you are comfortable with to repay your loan conveniently.  


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The 3 How’s of deciding the right Used car loan EMI

 Before applying for a used car loan, you must consider these questions carefully-


  • How soon do you want to pay off your used car loan?
  • How much can you afford to pay in a month?
  • How much of an interest rate are you comfortable with?


Proceed with your used car loan application only after you are comfortable with the answers to these 3 hows. This will help you select a plan that fits your requirements. 

How to Choose the Right Used Car Loan EMI Option?

Selecting the right EMI option is crucial to ensure you can repay the loan conveniently. Before you purchase a used car with an EMI option, you must answer the following questions to arrive at a suitable EMI value –

  • How soon do you want to pay off your used car loan?

    Do you want to repay the loan as soon as possible or repay it slowly over the years? If you wish to repay your loan sooner and have the means to do so, you can pay a higher down payment for a shorter loan tenure.

  • How much can you afford to pay in a month?

    If you choose a short tenure, you'll have to pay a higher monthly EMI amount. If you have a high income and a stable source, you can buy a used car on EMI by paying a higher EMI amount. To understand how much EMI you can afford every month, consider your used car loan EMI amount and other monthly expenses and weigh them against your monthly income. 

  • How much interest are you comfortable with?

    For a lower interest on your used car loan, opt for a short tenure because a longer tenure means higher interest outgo. However, a shorter tenure would mean higher EMIs every month. Depending on your current income and future expectations (of a raise), you can answer this question.

Which Used Car Loan EMI Option is Suitable for You?

Selecting the right Used Car Loan EMI option can seem overwhelming and even challenging. But with our pre-designed EMI plans, you can have a budget-friendly and comfortable EMI repayment experience.

Fixed EMI

With this repayment option, you can choose the Used Car Loan EMI Plan that suits your cash flow. Under Fixed EMI, the interest and principal component remain the same during the entire loan tenure. 

  • EMI amount remains unchanged for the entire used car loan period
  • Ideal if you have a consistent income

Structured EMI

Tata Capital's Structured used car loan EMI option allows you to select a repayment method that suits you best.

  • Customised EMI options as per your requirement
  • Ideal if you expect your income to increase at regular intervals

How much EMI do you need to pay when you buy a used car on EMI?

When you buy a used car with an EMI option, your EMI will depend on the loan principal, the interest applicable, and the loan tenure. With Tata Capital's flexible EMI, second-hand car purchase has never been easier.


You can use an online used car EMI calculator to arrive at a suitable EMI value.  

What are the Modes of Paying Used Car Loan EMI?

Repaying a used car loan with Tata Capital is very simple. You can make the EMI payments in the following two modes –

    Online Payment

    Buy a second-hand car on EMI and make payments online, through our website, from your desktop or mobile, anytime and anywhere.

    Drop a Cheque

    You can drop a cheque at your nearest branch at your convenience. 

How can you repay the Used Car Loan?

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


You can also prepay the loan if you are closing it fully. However, you will have to bear a prepayment charge. For more details, view our service charges.