EMI & Loan Calculators
Complete Guide to Used Car Loans in India
Learn about interest rates, eligibility, documentation, and tips for getting used car loans.
Used Car Loans: Everything You Need to Know
Buying a used car can be a smart financial decision, but securing a loan for a pre-owned vehicle requires understanding specific requirements and procedures.
Key Differences from New Car Loans
| Parameter | New Car Loan | Used Car Loan |
|---|---|---|
| Interest Rate | 8.5% - 12% | 12% - 18% |
| Loan Tenure | Up to 7 years | Up to 5 years |
| Loan Amount | Up to 90% of ex-showroom | Up to 80% of market value |
| Car Age Limit | New vehicle | Usually 5-7 years old |
Eligibility Criteria
- Age: 21-65 years
- Income: Minimum ₹15,000-20,000 monthly (salaried) or ₹2-3 lakh annual (self-employed)
- Employment: Minimum 2-3 years of employment/business
- Credit Score: Minimum 650-700
- Car Age: Typically maximum 5 years at loan start
Required Documents
For Salaried Individuals
- PAN Card
- Aadhaar Card
- 3 months salary slips
- 6 months bank statements
- Form 16
For Self-Employed
- Business proof (GST, Shop Act)
- 2 years ITR
- 6 months business account statements
- Balance Sheet & P&L Statement
Tips for Getting Approved
1. Choose a Reputable Dealer: Banks prefer certified pre-owned vehicles
2. Get Proper Valuation: Use tools like AutoEMI's used car valuation
3. Maintain Good Credit: Clear existing loans and credit card dues
4. Offer Higher Down Payment: 30-40% down payment improves chances
5. Consider NBFCs: They often have more flexible policies for used cars
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