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Second Hand Car Loan Interest Rates

The used car loan interest rate depends on multiple factors, including the cost of funds, customer profile, location, type of vehicle, loan tenure, and prevailing market discounts. Lenders also assess your credit score, monthly income, and repayment capacity to determine the applicable second hand car loan interest rate, ensuring it aligns with your financial stability and risk profile.

Type of Fee Application Charges
Processing Fee
  • Minimum 1.75% of loan amount or Rs 4000 whichever is higher (Term Loan)
LTV 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 a loan up to 95% for purchase of used car and upto 200% on your exisiting car. 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.

At Tata Capital, we understand that the requirement of each customer is unique. This is why our experts ensure you get a transparent and suitable deal at low-interest rates. We offer the most competitive interest rates in the industry, starting at just 10.75%.

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    Penal Charges on Used Car Loan

  • Default in payment of amounts due as per the Facility Documents

    3% per month on overdue amount

  • Dishonour of any cheque/
    payment instruments

    These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay ₹ 600 per instrument per instance.

  • Mandate Rejection Service Charge

    Charges will be levied if EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. Tata Capital charges a nominal amount of  ₹ 450 + GST

Other Charges On Second Hand Car Loan

Type of Fee Applicable Charges
Prepayment Penalty/ Foreclosure charges
  • 7% on Prepayment/ Foreclosure amount if the loan is being prepaid/ foreclosed within 6 months.
  • 6% on Prepayment/ Foreclosure amount if the loan is being prepaid/ foreclosed after 6 months but within 12 months.
  • 5% on Prepayment/ Foreclosure amount if the loan is being prepaid/foreclosed after 12 months.
Statement of Accounts
  • Customer portal – Nil
  • Branch walk in – ₹ 250/-
Loan Cancellation Charge ₹ 6500/-
Instrument swap charges ₹ 550 each time PDC is swapped
Duplicate Repayment Schedule ₹ 550/-
Duplicate NOC ₹ 550/-
Valuation Charges ₹ 750/-(Per valuation)
NOC for Interstate Transfer ₹ 1000/-
Stamp Duty As per actuals
Broken Period Interest At Actuals
NACH / PDC Charges ₹ 500/-
Foreclosure Report ₹ 550/-
Documentation charges ₹ 1,500/-
NOC for conversion of private to commercial registration ₹ 5600/-
Charges for Repossession of Vehicle ₹ 22000 as applicable
PDD charges ₹ 450/-


Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

Used Car Loan Interest Rate - Features & Benefits

Not only are used car loan rates & charges competitive, but they also offer a variety of additional benefits. These benefits make availing of a pre-owned car loan extremely attractive for a number of reasons.

Attractive Interest Rates

Tata Capital offers competitive used car loan interest rates, making it easier to finance a vehicle without high repayment burdens.

Flexible Loan Tenures

Loan terms range from 12 to 72 months, allowing borrowers to choose a repayment period that suits their financial situation.

Quick Loan Disbursement

Faster approval and disbursal ensure that funds are available quickly, helping you secure the best deals on a used car.

Minimal Documentation

The process requires basic documents like identity proof, income proof, salary slips, and residence proof for quick approval.

Multiple Ways to Apply

Apply online, visit a branch, connect via phone, or use Tata Capital’s virtual assistant or WhatsApp for a seamless application process.

Factors Affecting Second Hand Car Loan Interest Rates

While calculating interest rates, lenders consider multiple fixed and variable factors.

Some of the key factors that influence the used car loan interest rates are:

  • Debt-to-Income Ratio

    This ratio reveals if you can pay the loan EMIs on time. A high debt-to-income ratio paints a poor picture and can lead to the rejection of your application or high-interest rates.

  • Repayment Tenure

    The longer the loan tenure, the lower will be your interest rates. But this increases your overall interest payouts. For a shorter tenure, you'll have to pay high second-hand car loan interest rates, but the overall amount that you pay for the car will be low. 

  • Increase the down payment for lower used car interest rates

    Making a higher down payment reduces your second-hand car loan interest rates. It also lowers your EMIs as you borrow a lower principal amount. A high down payment also highlights that you are financially responsible and can repay the loan, reducing your pre-owned car loan interest rates.

  • Income

    You can get low pre-owned car loan interest rates if you have stable employment with a steady income. If you're a salaried individual, lenders will also consider your company when determining the interest rates on a used car loan.

  • Credit score

    An excellent credit score can help you avail of low pre-owned car loan interest rates. A poor credit score can lead to the rejection of your application or high-interest rates.

Avail of a used car loan from Tata Capital to enjoy affordable second-hand car loan interest, starting at just 10.75%.

Used Car Loan EMI Calculator

Loan amount
₹
100,000%10,000,000%
₹1,00,000₹1,00,00,000
Loan duration
6%1%
1 Year6 Years
Loan duration
72%12%
12 Months72 Months
Rate of interest
%
25%10.75%
10.75% p.a25% p.a

Monthly EMI

₹8,82,651*

Created with Highcharts 9.0.1Total Amount ​ Payable​₹1,05,91,811*​Total Amount ​ Payable​₹1,05,91,811*Total Interest ​ Payable​₹5,91,811*​Total Interest ​ Payable​₹5,91,811*

  • Total Amount Payable

    ₹1,05,91,811*

  • Total Interest Payable

    ₹5,91,811*

Total Amount Payable

₹1,05,91,811*

Total Interest Payable

₹5,91,811*

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Disclaimer:

The fees/charges stated 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 interest rates.

For the definitions of the above charges, please refer to the Master Terms and Conditions sheet. We will provide soft copies of the documents mentioned in the table above, free of cost. For hard copies, please refer to the above table for the applicable fees and charges.

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Abhi office jaane mein no jhig-jhig. Turn your aspirations into reality and enjoy a hassle-free ride now. Upgrade your daily ride journey with easy used- car loans. Apni khwahish puri karo with Tata Capital used car loans!

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Eligibility and Documents required for Used Car Loan

Eligibility and Documents required for Used Car Loan

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FAQs on Used Car Loan Interest Rate

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