There are many banks and Non-Banking Financial Companies (NBFCs) that provide used car loans for individuals. These loans are specifically given when one wants to buy a second-hand or a third-hand car and not a brand-new car. People opt for used cars as they are more cost effective. Some cars come into the second-hand market within just a few months after purchase and have run very few kilometres. So, in these cases, a used car is a better buy than a new car for individuals with limited funds.

There are a few banks that have low interest rates and other attractive features on their used car loans. They are:

1 HDFC bank:

Loan amounts of up to Rs.2.5 crores can be availed

Interest rates begin at just 10.25% 

Tenures range from 1 year to 7 years

Door step service is provided 

Easy and quick documentation is done 

2 ICICI bank:

Up to 80% of the value of the car is funded by the bank

Interest rates begin at 14.25% 

Tenures of up to 5 years can be opted for 

Documentation is easy and simple 

Fast loan processing is done 

3 SBI:

85% of the car’s value is funded by the bank

Interest rates begin at just 10.80%

Tenures can be extended up to 7 years 

To apply for a car loan, click here.