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 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. Go to the “Used Car Loan” section on our website and click on “Apply Now”. 2. Fill out an online application form. 3. Upload the required documents. 4. Wait for the verification process to be completed. 5. Upon successful verification of documents, the loan will be approved, and the amount will be disbursed within 24 to 36 hours.

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

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. Sign the loan agreement letter. 2. The loan amount is disbursed to the dealer or seller. 3. A new RC is prepared in the buyer’s name with a hypothecation endorsement. 4. Your vehicle is ready for delivery.

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.

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Used Car Loan

Used Car Loan

Used Vehicle Loan up to 95% of Car Value
ROI starting from 10.75% p.a.*
PF starting from 0.5% for women

Overview

Get Used Car Loan

Overview Required Documents Application Process Rates & Charges

Calculators

EMI Calculator

EMI Options

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%

View Rates & Charges

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. 25,000.
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. 3 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 ₹3,00,000 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 ₹3 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

Avail TATA Capital loans directly from WhatsApp

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What our customers say about us

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

PADIA PRATIK HARESHBHAI

Used Car Loan | 23 Jul, 2025

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

SAMIR YUSUFBHAI KHOKHAR

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

Communication was excellent. Solved my issue within hours.

ABHIJEET MOHAN JADHAV

Used Car Loan | 06 Jun, 2025

Everything went well with my loan process. Thank you.

Babu Lal Saini

Used Car Loan | 17 Jan, 2025

Already very good service.

MANE YUVRAJ SHIVAJI

Used Car Loan | 16 Jan, 2025

A very good finance company.

D SOWMIYAN

Used Car Loan | 12 Jan, 2025

Read All

FAQs on Used 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.

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

At Tata Capital, we provide used car loans at highly competitive interest rates, starting from just 10.75% per annum. The actual rate of interest 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

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

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. Go to the “Used Car Loan” section on our website and click on “Apply Now”.
2. Fill out an online application form.
3. Upload the required documents.
4. Wait for the verification process to be completed.
5. Upon successful verification of documents, the loan will be approved, and the amount will be disbursed within 24 to 36 hours.

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.

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.

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.

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).

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.

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.

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.

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.

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

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.

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 10.75% 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

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.

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.

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

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. Sign the loan agreement letter.
2. The loan amount is disbursed to the dealer or seller.
3. A new RC is prepared in the buyer’s name with a hypothecation endorsement.
4. Your vehicle is ready for delivery.

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.

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.

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.

Here 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 affordable interest rates
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