Top Used Car Loan Lenders in India 2026
Eight banks and NBFCs compared on starting rate, fees, funding, tenure and car-age limits.
Updated 30 September 2026 · 8 lenders trackedWhat you need to know
Public-sector banks — PNB, Indian Bank, Bank of Baroda and SBI — price used car loans lowest, while ICICI Bank and NBFCs like Tata Capital offer higher funding and longer tenures. NBFCs such as Sundaram Finance are often more flexible on older cars and self-employed borrowers but cost more.
All lenders compared
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| PNB Used Car LoanPublic sector bank | 9.45% – 10.55% | 0.25% of loan (min ₹1,000, max ₹1,500) + GST | Up to 5 years (60 EMIs) | ₹2,510 | 27 Sep 2026 (aggregator) |
| Indian Bank Pre-owned Car LoanPublic sector bank | 9.55% – 11.65% | As per the bank’s service-charge schedule — ask the branch | Up to 6 years (72 months) | ₹2,515 | 10 Sep 2026 |
| ICICI Bank Pre-owned Car LoanPrivate sector bank | 9.75% onwards | 2% of loan, max ₹20,000 + GST | Up to 7 years | ₹2,524 | Sep 2026 |
| Bank of Baroda Pre-owned Car LoanPublic sector bank | 10.20% – 12.95% | 0.50% of loan + GST (min ₹2,500, max ₹10,000 + GST) | Up to 5 years (car age from invoice + tenure ≤ 96 months) | ₹2,546 | Sep 2026 |
| SBI Pre-owned Car LoanPublic sector bank | 10.45% – 15.60% | 1.50% of loan + GST (min ₹3,000, max ₹10,000 + GST) | Up to 5 years (car age + tenure ≤ 10 years) | ₹2,558 | 16 Sep 2026 |
| Tata Capital Used Car LoanNBFC | 10.49% onwards | Up to 2.95% of loan + GST | 12 – 72 months | ₹2,560 | Sep 2026 |
| HDFC Bank Used Car LoanPrivate sector bank | 11.25% onwards | As per sanction — see the KFS (not published on sources checked) | 12 – 60 months | ₹2,597 | 18 Aug 2026 (aggregator) |
| Sundaram Finance Used Car LoanNBFC | 12.50% onwards | About ₹2,500 (aggregator) | Up to 4 years (48 months) | ₹2,658 | Sep 2026 |
* At the lowest rate for 4 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
Funding and age rules
| Lender | Vehicle age rule | Funding | Max tenure |
|---|---|---|---|
| SBI Pre-owned Car Loan | Car age + loan tenure ≤ 10 years | Up to 85% of valuation | 5 years |
| PNB Used Car Loan | Car not older than 3 years | 75% (25% margin) | 5 years |
| Bank of Baroda Pre-owned Car Loan | Age from original invoice + tenure ≤ 96 months | Lowest of 75% market value, 75% agreement value, 100% IDV | 5 years |
| Indian Bank Pre-owned Car Loan | Not published — ask the branch | 70% – 80% | 6 years |
| ICICI Bank Pre-owned Car Loan | Not published — assessed at valuation | Up to 100% (bank) / 80% (aggregator) | 7 years |
| HDFC Bank Used Car Loan | Not published — assessed at valuation | Based on valuation | 5 years |
| Tata Capital Used Car Loan | Car ≤ 10 years old at loan maturity | Up to 100% | 6 years |
| Sundaram Finance Used Car Loan | Models up to 7 years old | Up to 85% of lower of price and valuation | 4 years |
Example: a 6-year-old car can get at most 4 years at SBI or Tata Capital (10 − 6) and 2 years at Bank of Baroda (96 − 72 months), and is not eligible at PNB. Older cars mean shorter tenures and higher EMIs.
Lender types
| Lender type | Lenders tracked | Range of starting rates |
|---|---|---|
| Public sector bank | 4 | 9.45% – 10.45% |
| Private sector bank | 2 | 9.75% – 11.25% |
| NBFC | 2 | 10.49% – 12.50% |
Special schemes
| Lender | Scheme / feature | Details |
|---|---|---|
| PNB Used Car Loan | Floating or fixed | Choose RLLR-linked floating (no prepayment charge) or fixed rate |
| Indian Bank Pre-owned Car Loan | Pensioner-friendly | Pensioners eligible with ₹20,000 monthly income |
| ICICI Bank Pre-owned Car Loan | Longest tenure | Up to 7 years — the longest among lenders we track |
| Bank of Baroda Pre-owned Car Loan | Certified dealer cars | Finance for pre-owned cars from certified dealers |
| Bank of Baroda Pre-owned Car Loan | Credit-score pricing | Published rates apply to CIBIL 701+ |
| SBI Pre-owned Car Loan | Certified Pre-owned Car Loan | For cars bought from certified pre-owned dealers / manufacturer programmes |
| SBI Pre-owned Car Loan | Score-based pricing | Higher CIC score = lower spread over MCLR |
| Tata Capital Used Car Loan | Loan against your existing car | Refinance of a car you already own — Tata Capital advertises up to 200% of value |
| Tata Capital Used Car Loan | High funding | Up to 100% for purchase on eligible profiles |
| HDFC Bank Used Car Loan | Existing-customer offers | Pre-approved offers are common for HDFC Bank account and card holders |
| Sundaram Finance Used Car Loan | Older and self-employed profiles | NBFC underwriting often suits buyers banks turn down |
How to pick
- Car under 3 years old and floating rate wanted → PNB, Indian Bank, Bank of Baroda.
- Older car or need a long tenure → ICICI Bank (7 years) or Tata Capital (6 years), within their age limits.
- Want high funding → SBI or Sundaram (85% of valuation), ICICI / Tata Capital (up to 100% for strong profiles).
- Plan to prepay → prefer a floating-rate loan with no foreclosure charge.
Frequently asked questions
Bank or NBFC for a used car loan?
Banks are usually cheaper and PSU banks offer floating rates with no prepayment charge. NBFCs approve faster, fund older cars and thinner credit files, but charge higher rates and foreclosure fees.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.