Used Car Loan Guide — Interest Rates, Tips & Best Banks 2026
CardKhoj Editorial Team 12 min read14 March 2026
Financial Disclaimer
Disclaimer: This information is for educational purposes only. Always consult a certified financial advisor before making any financial decision.
Financing a Pre-Owned Car
Used car loans are 1-3% costlier than new car loans because the collateral (car) depreciates. Banks typically finance cars up to 7-10 years old, covering 70-85% of the car's current market value.
Used Car Loan Comparison
| Bank | Rate | Max Age of Car | Max Financing | Tenure |
|---|---|---|---|---|
| HDFC Bank | 9.5% - 13% | 10 years | 85% of value | 7 years |
| ICICI Bank | 10% - 14% | 8 years | 80% of value | 5 years |
| Axis Bank | 9.75% - 15% | 7 years | 80% of value | 5 years |
| Mahindra Finance | 11% - 18% | 12 years | 75% of value | 5 years |
Smart Tips
✅ Get car inspected before purchase. ✅ Check RTO transfer and insurance transfer costs. ✅ Negotiate from market value, not asking price. ✅ Consider certified pre-owned (CPO) programs from Maruti True Value, Hyundai Assurance.