How to apply for used car loan?

Used car loans are provided at attractive interest rates and come with a repayment tenure of up to 7 years. Certain lenders provide loans of up to 100% of the car’s value. Most banks and NBFCs provide used car loans. Self-employed individuals and salaried employees can avail themselves of a used car loan.

Buying a used car is often a better value because they’re cheaper, and you can avoid the big depreciation hit that comes with driving a new car off the lot. However, arranging the financing for a used car is a very different story.

Used car loans typically come with higher interest rates and have more restrictions on the type of car you can buy compared to new car loans. But there are still good options. we’ve compiled the best used car loan companies, based on rates, terms, and fees, to help you find the right loan for your vehicle. 

Features of Used Car Loan

Loan Amount

  • Get between 3 to 6 times your yearly income
  • Borrow up to 100% of the value of the car
  • Maximum loan tenure of 60 months
  • Age of Car at loan maturity up to 10 years

Flexible Repayment Tenure

These loans come with a flexible repayment tenures from 12 months to 84 months. However it varies lender to lender

Loan without income document

You can easily Get 80% to 85% of the value of the car as loan amount for 3-5 years without income proof. Here your car is itself an asset for lenders.

Used Car Loan Eligibility Criteria

The following people are eligible to apply for a used Car Loan:

Salaried Individuals:

  • This includes doctors, CAs, employees of private limited companies, employees from public sector undertakings, including central, state and local bodies
  • Individuals who are a minimum of 21 years of age at the time of applying for the loan, and no older than 60 at the end of the loan tenure
  • Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer
  • Those who earn a minimum of Rs. 2,50,000 per year, including the income of the spouse

Self Employed Individuals:

  • This includes self-employed sole proprietors in the business of manufacturing, trading or services
  • Individuals who are a minimum of 25 years of age at the time of applying for the loan, and no older than 65 at the end of the loan tenure
  • Those who have been in business for a minimum of 3 years
  • Should earn at least Rs. 2,50,000 per annum

You may choose to apply with many lenders.

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