Used Car Loan
Looking to buy a pre-owned car? Tata Capital makes it simple and affordable with flexible Used Vehicle Loan options tailored to your needs. Get financing of up to 95% of the car’s value with minimal documentation and quick approval. Enjoy attractive interest rates starting from 10.75% p.a.*, ensuring a smooth and convenient car-buying experience.
| Feature | Details |
|---|---|
| Loan Amount | Up to 95% of Used Car Value |
| Interest Rate | Starting from 10.75% p.a.* |
| Documentation | Minimal & Hassle-Free |
Get Used Car Loan Up to ₹50 Lakhs*
Looking for the best way to finance your second-hand car? Whether you're planning to buy a hatchback, SUV, or premium sedan, a used car loan makes owning your dream car easier and more affordable. With Tata Capital’s Used Car Loan, you can finance up to 95% of your car’s value without dipping into your savings. Enjoy flexible EMI options, quick loan disbursal, and minimal documentation — making it the perfect choice for comfortable and convenient financing. We offer loans for a wide range of second-hand cars, ensuring you never have to compromise on your dream vehicle.
Disclaimer: Used Vehicle Loans are at the sole discretion of Tata Capital Limited (TCL). Terms and conditions apply.
| Feature | Details |
|---|---|
| Loan Amount | ₹1,00,000 – ₹50,00,000 |
| Loan Tenure | 12 – 72 months |
| Interest Rate | Starting from 10.75% p.a. |
Used Car Loan Interest Rates
At Tata Capital, we customise used vehicle loans to match your financial needs. Enjoy transparent terms and highly competitive interest rates starting from just 10.75%* per annum. Benefit from minimal charges, flexible repayment options, and a seamless loan experience.
| Charge Type | Details |
|---|---|
| Interest Rate | Starting from 10.75%* p.a. |
| Processing Fees | Up to 2.95% + GST |
| Documentation Charges | Up to ₹1,999 |
| Post Disbursal Document Charges | ₹500 + GST |
| Loan Tenure | 12 to 72 months |
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.
| Particular | Details |
|---|---|
| Interest Rate | Starting from 10.75%* per annum |
| Processing Fees | Up to 2.95% + GST |
| Documentation Charges | Up to ₹1,999 |
| Post Disbursal Document Charges | ₹500 + GST |
| Loan Tenure | 12 to 72 months |
Grow Your Vision
Eligibility Criteria for Pre-Owned Car Loan
Salaried Individuals
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 ₹25,000.
- You must have a minimum of 1 year of work experience.
Self-Employed Individuals
Self-employed individuals must meet the following used car loan eligibility criteria:
- You must be between 21 and 65 years of age.
- Your business must have been operating for at least 2 years.
- You must have a minimum annual income of ₹3 lakhs.
Self-Employed Partnership
Self-employed individuals in a partnership must meet the following eligibility criteria:
- Either the firm or the individual partner must have an income of ₹3,00,000 per annum.
- Last 3 months' bank statements must be provided.
- ABB should be 0.5 times the EMI.
Self-Employed (Others)
For self-employed (others), the used car loan eligibility criteria include:
- Annual income must be at least ₹3 lakhs.
- Last 3 months' bank statements required.
- ABB should be 0.5 times EMI to qualify.
Documents Required for Used Car Finance
Documents Required For Salaried Individuals
The documents required for a second-hand car loan vary depending on your employment type.
- Photo Identity Proof: Voter ID, Passport, Driving License, or Aadhaar Card
- Income Proof:
- Salary account bank statements for the last 3 months
- Salary slips for the last 3 months
- Proof of Residence: Voter ID, Passport, Driving License, or Aadhaar Card
- Vehicle Documents: Copy of Vehicle Registration Certificate
Documents For Self-Employed Individuals
The documents required for a second-hand car loan vary depending on your employment type.
- Photo Identity Proof: Voter ID, Passport, Driving License, or Aadhaar Card
- Signature Proof: Copy of your signature with valid proof
- Proof of Residence: Voter ID, Passport, Driving License, or Aadhaar Card
- Income Proof:
- Income Tax Returns (ITR)
- Audited Balance Sheet
- Profit & Loss Statements
- Last 3 months’ bank statements
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.
Finance up to ₹50 lakhs, depending on eligibility.
Repayment period of up to 72 months.
Starting at 10.75%* per annum (flat-rate).
Simple process with easy online application.
Loan amount credited within 24–36 hours post-approval.
Pay via cheques, online modes, or structured EMIs.
Choose from standard or step-up EMIs to suit your cash flow.
FAQs on Used Car Loan
1. What is a Used Car Loan?
Buying a second-hand car is economical, offers slower depreciation, and ensures worry-free driving. If your desired car exceeds your budget, a used car loan helps bridge the gap. Tata Capital finances hatchbacks, SUVs, and premium sedans with loans up to 95% of the car’s value, offering flexible EMIs and quick disbursal.
2. How much time does it take to process a Used Car Loan?
Once all documents are submitted, Tata Capital typically processes and disburses the loan within 24 to 36 hours, ensuring a fast and smooth buying experience.
3. How can I repay the Used Car Loan?
You can repay via ECS, Direct Debit, or Post-Dated Cheques drawn in favour of “Tata Capital Limited”.
4. What are the minimum and maximum loan amounts?
You can avail loans ranging from ₹1,00,000 to ₹50,00,000, depending on eligibility.
5. How does a used car loan work?
- Apply for the loan
- Get approval based on credit & vehicle value
- Make required down payment
- Lender pays seller directly
- Repay through EMIs
- Transfer vehicle ownership
- Receive NOC on full repayment
6. What is the maximum tenure available?
The maximum repayment tenure is 72 months (6 years).
7. Who can be co-applicants?
Co-applicants can include your spouse, family members, or blood relatives.
8. Is collateral required?
No. The car itself acts as the collateral and is hypothecated to Tata Capital.
9. How to apply for a Tata Capital Used Car Loan?
- Apply online
- Email customer support
- Call 1860 267 6060
- Use virtual assistant TIA
- Visit a nearby Tata Capital branch
10. How does income affect eligibility?
Higher income increases loan eligibility and helps secure better EMI terms. Your ability to repay monthly EMIs determines eligibility.
11. What charges apply on a pre-owned car loan?
Processing Fee: Minimum 1.75% or ₹4,000 (Term Loan)
Overdraft: 2% of the sanctioned limit
LTV: Up to 95% for purchase & up to 200% on existing car.
12. When will I receive my NOC after loan closure?
NOC is dispatched within 5 working days after loan closure. CIBIL updates after 30 days.
13. Can I use a personal loan to buy a car?
Yes, but Tata Capital’s used car loan offers higher eligibility, lower interest rates, and financing up to 95% of the car value with 12–72 months tenure.
14. Should I make a down payment?
Not mandatory, but recommended for lower EMIs, reduced interest, and better approval chances.
15. When can I take a Used Car Loan?
You can take a loan for personal or business use—whenever you need a reliable vehicle for daily commute, emergencies, deliveries, or client meetings.
16. What EMI options are available?
Standard EMI: Fixed EMI throughout tenure.
Structured EMI: Lower initial EMIs that gradually increase.
17. How to make the loan application easy?
- Compare lenders & offers
- Apply online for faster processing
- Keep all documents ready
- Use EMI calculator
- Choose a trusted lender like Tata Capital
18. What to check before buying a used car?
- Verify vehicle condition & service history
- Take a test drive
- Get a mechanic inspection
- Check documents (RC, PUC, insurance)
- Transfer RC using Form 29 & 30
19. What factors affect used car loan eligibility?
Income level, CIBIL score (750+ preferred), existing EMIs, and work stability.
20. How to improve loan eligibility?
- Make a higher down payment
- Maintain strong credit score
- Choose longer tenure
- Add a co-applicant
21. What payment options are available?
Pay EMIs online via website/mobile, or submit cheques at any Tata Capital branch.
22. Why choose Tata Capital for a Used Car Loan?
- Minimal documentation
- Multiple repayment modes
- Market-best interest rates
- Loan up to ₹50 lakhs
- Instant approval
- Secure & fast online process