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Interest Rates

Our Used Car loan interest rates start at 15% are competitive amongst the other players in the industry. However, depending on loan eligibility, income, your Used Car and other criteria, we determine the best interest rates for your Used Car loan requirement.

When you apply for a Used Car Loan with Tata Capital, you do not have to worry about any hidden charges. Whether it is related to processing fees, foreclosure charges, or delayed EMI Payments, all information is transparently-provided for smooth processing of your Used Car.

Processing Fee

1.75% of the Second hand car loan amount


We offer second hand car loan amount equivalent up to 95% of the value of the used car. On select cars, we even finance 100% value of the used car.

Penal Interest / Additional Interest

3% on Overdue Amount per month + GST

Miscellaneous Charges

Bounce Charges

₹ 600 for every Cheque/ Payment Instrument/ ECS Dishonour + GST

Foreclosure Charges

If loan is getting foreclosed within 6 months: (7% of the principal outstanding at the time of foreclosure + GST)

If loan is getting foreclosed within 6 to 12 months: (6% of the principal outstanding at the time of foreclosure + GST)

If loan is getting foreclosed after 12 months: (5% of the principal outstanding at the time of foreclosure + GST)

Mandate Rejection Service Charge

₹ 450 + GST

Charges will be applicable on your EMI Due date in case the account does not have an Active mandate after the exhaustion of the given post-dated cheques. This charge would be applied every month until there is an Active Mandate linked to the account.

Statement of Accounts

Soft Copy – Nil

Branch walk in - ₹ 250 + GST

Loan Cancellation Charge

₹ 6,500

Instrument swap charges

₹ 550 + GST

Duplicate Repayment Schedule

₹ 550 + GST

Duplicate NOC

₹ 550 + GST

Valuation Charges

₹ 750 + GST

NOC for Interstate Transfer

₹ 1000 + GST

Stamp Duty

 If loan amount is less than Rs 5 lakhs (o.1% + Rs. 700)

If loan amount is more than Rs. 5 lakhs (0.2% + Rs. 700)

Broken Period Interest

At Actuals

NACH / PDC Charges

₹500 + GST

Foreclosure Report


How Can I be Eligible to Avail a Used Car Loan?

 Whether you’re a salaried or a self-employed individual, you can meet used car loan eligibility by maintaining a good CIBIL score of 750 or above. However, other eligibility factors may be a little different. For instance – salaried individuals need to be between 21 and 60 years, have a minimum monthly income of Rs. 20,000 and have work stability for at least a year. On the other hand, self-employed individuals must be between 21 and 65 years of age, have an annual business income of Rs. 2 lakhs, and a stable business for a minimum of three years.  

How to Use Used Car Loan EMI Calculator for Calculating EMI?

 To use an online used car loan EMI calculator, you simply need to enter three inputs – the Principal loan amount you wish to borrow, the applicable rate of interest, and the desired loan tenure. Once entered, the calculator will automatically show the EMI value within seconds.  


  • The fees/charges indicated above are subject to change at Tata Capital’s discretion from time to time.

  • Customers who have taken a loan before April 15th 2019 need to refer to the loan agreement and schedule of charges for applicable rates.

  • For the definitions of the above charges, please refer to the Master Terms and Conditions sheet.

  • Soft copies of documents mentioned in the table above will be provided free of cost. For hard copies, please refer to the above table for the applicable fees and charges.

Detailed FAQs

Imported vehicles are also funded on case-to-case basis. The lending rates are dependent on various factors including cost of funds, customer credentials, geography, asset, tenor and discounts offered in the market. Tata Capital ensures that you get a transparent and good deal at the time of availing the Used Car Loan.

The loan can be repaid through ECS, Direct debit and post-dated cheques drawn on "Tata Capital Financial Services Limited".

No, the EMI is fixed for the life of the loan. However, we offer flexible solutions to fit your requirement.

At Tata Capital, we offer Used Car Loans with multiple repayment options. Our Flexi EMIs allow you to choose a plan that suits your need as per your cash flow.

Fixed EMI

You get to choose the Used Car Loan EMI Plan that suits your cash flow. Flexible EMI plans include. Under Fixed EMI, the interest and principal component charged to you is fixed during the entire loan tenure.

EMI amount remains the same for the entire used car loan period

Ideal if

You have a consistent income

Structured EMI

Our Structured 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

It takes us 24-36 hours from the completion of documentation to sanction a used car loan.

Used car loan interest rate is the rate at which interest will be charged on the principal loan amount. Meaning, the borrower of a used car loan will be required to repay the principal amount + the applicable interest on the loan in the form of monthly EMIs.

Tata Capital has some of the most competitive second hand car loan interest rates in the market, starting at just 15%.


 Besides used car loan interest rates, other charges such as the processing fee are also involved. It is a one-time fee charged by the lender at the time of loan application processing. Processing fee is non-refundable even if the loan application is rejected.

At Tata Capital, the Used Car Loan processing fees is charged at 1.75% of the loan amount.

Used car loan interest rates will be charged on the principal loan amount, which will include the registration fees for some loan offerings. However, insurance of the vehicle does not form a part of the value and will have to be paid up-front.

Used car loan interest rates are one of the many charges involved in the repayment of a used car loan. If the borrower wishes to repay the entire used car loan amount in a single payment, such a foreclosure of the loan will accompany certain penalty known as the foreclosure charges.

Tata Capital charges foreclosure as follows:

7% of the principal outstanding at the time of foreclosure + GST if loan is getting foreclosed within 6 months

6% of the principal outstanding at the time of foreclosure + GST if loan is getting foreclosed within 6 to 12 months

5% of the principal outstanding at the time of foreclosure + GST if loan is getting foreclosed after 12 months

 When it comes to used car loans, salaried individuals who wish to purchase a car for self-use are not offered any tax exemptions as per the Income Tax Act. However, Section 80 C of the Income Tax Act states that self-employed individuals who wish to purchase a car for commercial purposes can get some respite from high used car loan interest rates. The interest to be paid in a year is eligible for tax deduction. Additionally, such individuals can also file for tax benefits on the depreciation value of the vehicle.  

 No, used car loan processing fee is not refundable. Lenders use this money to take technical and legal action involved in the verification of an applicant’s documents, their car’s age and make, etc. and as such, even if the loan application is rejected, the processing fee amount will not be refunded.  



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