Car Loan
Growing Market Segment
June 2026 · Karthik, Vijayawada AP · 8 min read
Used Car Loan India 2026 EMI, Interest Rates, Banks for Second Hand Cars
Complete guide to used car loans in India 2026. Interest rates 11-18% (higher than new car). LTV 70-80%. Banks and NBFCs compared. Tips to get lowest rate and avoid rejection.
Used Car Loan Interest Rates — June 2026
| Lender | Interest Rate | Max Car Age | Max LTV | Processing Fee |
|---|---|---|---|---|
| HDFC Bank Used Car | 11.50% - 16.00% | 10 years | 80% | 2-3% |
| ICICI Bank Used Car | 12.00% - 16.50% | 10 years | 80% | 2-3% |
| Axis Bank Used Car | 11.25% - 17.00% | 10 years | 80% | 2-3% |
| SBI Used Car Loan | 11.00% - 15.00% | 8 years | 80% | 1.5% |
| Mahindra Finance | 14.00% - 19.00% | 12 years | 85% | 2-3% |
| Cars24 Finance | 13.00% - 19.00% | 15 years | 85% | 2-3% |
Used Car vs New Car Loan — Key Differences
| Feature | New Car Loan | Used Car Loan |
|---|---|---|
| Interest Rate | 7.7% - 10.5% | 11% - 20% |
| Max LTV | Up to 100% | 70-85% |
| Tenure | Up to 7 years | Up to 5 years |
| Vehicle Inspection | Not required | Mandatory — affects loan |
| Depreciation Risk | High (30% in year 1) | Lower (already depreciated) |
Tips to Get Best Used Car Loan
- Buy from certified pre-owned (Maruti True Value, Hyundai H Promise) — banks offer better rates for certified cars
- 750+ CIBIL score saves 2-3% on interest rate — same as new car loans
- Salary account at bank = 0.25-0.50% rate concession usually
- Compare bank loan vs dealer's NBFC partner — dealer may not offer best rate
- Car inspection before applying — reject cars with modified engines or accident history
FAQs
What is maximum age of car for loan? +
Banks: Max car age at loan end = 8-12 years (varies by bank). For ₹3 lakh 5-year loan, car should not be older than 5-7 years currently. NBFCs like Mahindra Finance and Cholamandalam go up to 12-15 year old cars. Older car = higher rate + lower LTV + shorter tenure.
Used car loan from Cars24 vs bank — which is better? +
Cars24 Finance rate 13-19% vs SBI 11-15% or HDFC 11.5-16%. Banks are cheaper if you qualify. Cars24 Finance advantage: faster, less documentation, older cars accepted, instant decision for Cars24 certified vehicles. If you can get bank loan: bank first. If rejected or car too old: Cars24/Mahindra Finance as backup.
Related Searches
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June 2026 · Karthik, Vijayawada APRBI Verified 20264.8/5