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Used Car Loans

Used-car finance is priced several points above new, with shorter tenures and lower funding — because the collateral is harder to value and depreciates faster.

Typical funding on a used car
70 – 85% of valuation

Of the lender's valuation, which is usually below the asking price.

as of 2026-08-15· Lender product termsreported

The constraint most buyers hit is not the rate but the age cap: many lenders will not finance a car that would be older than 8–10 years at loan maturity.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

Beyond the table

The funding percentage applies to the lender's valuation, not the seller's price. On a private sale that gap can be wide, and the difference lands on your down payment. Get the valuation before you commit to the purchase price.

Insist on the paperwork before the money moves: registration certificate, insurance history, a clear hypothecation status from any earlier loan, and confirmation there are no outstanding challans. A car still hypothecated to a previous lender cannot be transferred cleanly, and that is discovered at the RTO, after payment.

Your numbers

₹50 L
₹10,000₹50,00,000₹20 Cr
18.5%36
120 years30
Monthly EMI
₹43,391
  • Principal48%
  • Interest52%
Principal
₹50,00,000
Total interest
₹54,13,879
Total payable
₹1,04,13,879
Interest as % of principal
108.28%
Growth over time
₹0₹27.3 L₹54.7 L₹82 L₹1.09 CrYr 1Yr 4Yr 7Yr 10Yr 13Yr 16Yr 19Yr 20
ValueAmount you put in

What this means.Over 20 years you repay more in interest than you borrowed. Cutting the tenure or prepaying early changes this sharply.

View the full breakdown (20 rows) →
YearPrincipal paidInterest paidBalance
1₹99,511₹4,21,182₹49,00,489
2₹1,08,307₹4,12,387₹47,92,181
3₹1,17,881₹4,02,813₹46,74,300
4₹1,28,300₹3,92,394₹45,46,000
5₹1,39,641₹3,81,053₹44,06,359
6₹1,51,984₹3,68,710₹42,54,375
7₹1,65,418₹3,55,276₹40,88,957
8₹1,80,039₹3,40,655₹39,08,918
9₹1,95,953₹3,24,741₹37,12,965
10₹2,13,274₹3,07,420₹34,99,691
11₹2,32,125₹2,88,569₹32,67,566
12₹2,52,643₹2,68,051₹30,14,923
13₹2,74,974₹2,45,720₹27,39,949
14₹2,99,279₹2,21,415₹24,40,670
15₹3,25,733₹1,94,961₹21,14,937
16₹3,54,525₹1,66,169₹17,60,412
17₹3,85,862₹1,34,832₹13,74,550
18₹4,19,968₹1,00,726₹9,54,582
19₹4,57,090₹63,604₹4,97,492
20₹4,97,492₹23,202₹0

At ₹50,00,000 over 20 years, Bank of Baroda holds the lowest advertised floor on our board.

Only these figures travel with you.

See Bank of Baroda’s terms

Questions

What is the interest rate on a used car loan?

Typically several percentage points above a new-car loan, reflecting faster depreciation and harder valuation. The rate rises with the age of the vehicle.

How old a car can I finance?

Most lenders cap the vehicle age at maturity — commonly 8 to 10 years — which limits both which cars qualify and how long a tenure you can take on an older one.

Can I get a loan for a car bought from a private seller?

Yes, though it is more paperwork than a dealer purchase. The lender will want the registration certificate, insurance, a valuation, and confirmation that any earlier hypothecation has been removed.

Related reading

Sources

Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.

  1. [3]Home, personal, vehicle and education loan rate cards — August 2026— Lender published rate cardsas of 15 August 2026
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.