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Karnataka Bank as the name suggests is a Karnataka based bank having its headquarters in Mangalore. It is one of the oldest banks in the country and was incorporated in the pre-independence era. Today the bank has grown from humble beginnings to catering to international customers as well. The bank has a huge customer base of over 10 million customers and a variety of products and services to provide the best and utmost service to the customers in the best possible manner.

The bank provides faster and feasible loan products for many categories like home loans, vehicle loans, educational loans, business loans, and much more.

Among the above loan products, Karnataka bank Car Finance Scheme provides car loans for the purchase of new cars as well as used cars. The primary condition for eligibility to get a used car loan is that the vehicle cannot be more than 5 years old from the date of its registration.

The details of the bank’s used car loans are given below.

Eligibility for Karnataka Car Finance Scheme (Used Cars)

Karnataka Bank Used Car Loan

The eligibility requirement for the bank’s used car loans is similar to that of the new car loans. The bank has enlisted the following persons to be eligible for the used car loans.

  • The bank can provide used car loans for all the resident Indians as long as they are,
    • above the age of 18 years and
    • are income tax assesses
  • The bank also allows NRIs to apply for the used car loans.
  • Persons engaged in agriculture and owning agricultural properties are also eligible for applying the used car loans of Karnataka Bank.
  • The bank also permits following non-individuals to apply for the bank’s used car loans in their name.
    • Company
    • Partnership Firm
    • Trust
    • Association
    • Societies

The above persons can apply for a loan in their name or in the name of their employees like,

  • Executive Director
  • Managing Director
  • Managing Partner
  • Managing Trustee
  • President
  • Secretary

Documents required for Karnataka Bank Used Car Loans

The bank requires certain basic KYC documents along with a few vehicle specific documents for its loan application process.

The list of such KYC documents and additional documents is provided hereunder.

  • Identity proof of the applicant 
  • Address proof of the applicant
  • Recent photographs
  • Income proof (form 16 / ITR for past year at least)
  • Bank statements (past 6 months at least)
  • Proforma Invoice of the vehicle
  • Sale agreement from the seller or the authorized car dealer
  • Car valuation report
  • RC copy of the vehicle
  • Insurance copy of the vehicle

Features of Karnataka Bank Used Car Loans

The salient features of Karnataka Bank Used Car Loan are highlighted below.

Tenure – 

The bank offers a differential tenure for used car loans than its loans for new car loans. The tenure for used car loans is 34 months as compared to the 84 months for new car loans.

Amount of loan sanctioned – 

Karnataka Bank provides finance up to a maximum of 75% of the value of the vehicle. This amount is further restricted to a maximum of Rs. 20,00,000.

Rate of Interest – 

The rate of interest on Karnataka Bank used car loans with effect from 1st March, 2020 is 10.70% across all categories of applicants. The interest rate of the bank is considered to be very reasonable and affordable as compared to many other lenders in this category.

Margin – 

The bank requires a margin of 25% to 30% of the value of the vehicle to be provided by the applicant. The margin requirement will depend on the applicant’s profile and his/her creditworthiness as well as the details of the vehicle to be purchased out of the loan.

Security – 

The bank has the safeguard of the hypothecation of the vehicle to be purchased out of the loan sanctioned in the event of non-repayment of the dues or non-viability of the loan. Apart from this, the bank will require a third-party guarantee or co-obligation in case of individual borrowers.

These are the basic features or highlights of the used car loans of the bank. Customers can contact the bank for further details like processing time, processing charges applicable, prepayment penalty or charges applicable (if any), foreclosure formalities and charges applicable (if any) or any other hidden charges applicable for used car loans.

Karnataka Bank Loan Application Process

Karnataka bank offers its customers the option to apply for its loan products via the online mode as well as the physical mode.

Online mode of application – 

Customers can apply for the used car loans of the bank or any other loan product by visiting the website of the bank and clicking on the following link

Home Personal Loan Car Loans Apply online

The link for online application is available on the right-hand corner of the car loans page.

By clicking on the above link, the applicant will be taken to a new page where he/she will have to fill in the their basic details like

  • Full name
  • Gender
  • Date of birth
  • Residential status
  • Occupation
  • Net annual income
  • Type of loan needed (to be selected from drop down box)
  • Loan purpose (whether new car loan or used car loan to be selected from the drop down box)
  • Company details and current commitment details are optional

This will create a request for a call back from the representatives of the bank and guide the applicant through the application process.

Customers can also download the application form for used car loans from the bank’s website under the following link.

Home  Application Forms

Physical mode of application –

In this case the applicant will have to physically visit the branch of the bank to enquire and apply for the used car loans of the bank. Customers can get the details of the nearest branch by locating the same on the bank’s website. The customers will find the link to locate the branch at the same page for applying the loans online in the left hand corner under the tab ‘Contact Us’.

Customers will have to select the State, city and nearest branch details from the available drop down boxes to get the details like Branch Name, Address, IFSC Code and Telephone Number.

Customers can then visit the desired branch and get the application form for the used car loans, duly fill the same and submit it along with the necessary documents to complete the loan application process.

Karnataka Bank Customer Care

Customers can contact the bank through the following channels to address all their concerned ad queries and resolve them in a timely manner.

080 – 22021507/ 08/ 09

  • Email Id – info[at]ktkbank[dot]com

Postal Address – 

Customer Care Centre

#111 Hafeeza Chambers,

3rd floor,

KHR Road, 


Phone - 080 – 22021500/ 2263 8400/ 2263 9800/ 2202 1428 (available from 10 am to 5 pm)

Email – ccc[at]ktkbank[dot]com

Corporate office

Karnataka Bank Limited

Post Box No. 599,

Mahaveera Circle,


Mangaluru – 575 002

Dakshina Kannada District

Karnataka State

Phone – 0824 – 2228222/ 2225588

FAQs – Karnataka Bank Used Car Loans

1. What is the usual turnaround time for processing a used car loan?

The usual turnaround time of the bank for processing a used car loan is 3 working days.

2. What is the minimum age limit to apply for a used car loan?

Karnataka Bank has set the minimum age limit to apply for used car loan to be 18 years

3. What is the margin requirement for used car loans?

The bank requires a margin of 25%-30% for used car loans.

4. What is the maximum amount that can be availed as a used car loan?

The maximum amount that can be sanctioned under Karnataka Bank used car loans is calculated to be lower of, Rs. 20,00,000, 75% of the value of the vehicle

5. What is the current rate of interest on used car loans?

Karnataka Bank provides used car loans at 10.70% rate of interest with effect from 1st March 2020.

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