Holding a car is a passion for many Indians. Whether it's a luxury car, sedan, or sports car, owning your vehicle is on nearly everyone's agenda. Whereas cars can be high-priced, car loans have made purchasing one considerably easier and more cost-effective. Car Pe Cash helps you find affordable used car loan interest rates that fit your budget perfectly.
Today, the largest banks in India offer car loans at competitive interest rates. The procedure to get a loan is also more straightforward than that before. With the vast number of loan options available from various financiers, it’s significant to compare and choose the best one. If you're planning to buy a car in 2025 and looking for the best car loan, this blog will help you make the right choice. Make a wise choice with a used car finance interest rate comparison before applying for a loan.
Initially, you need to decide what type of car you want—whether it's a small car, SUV, or a premium model. Once you know what you want, there are core elements to remember while checking out various loan options. Save more by choosing the cheapest used car loan interest rates available in the market.
You should compare:
Interest rates offered by various banks and financiers
The down payment amount claimed
The types of repayment available choices
Any extra charges or fees involved
Before you apply for a car loan, take some time to read our full blog. It will guide you across the best car loan options in India for 2025 and help you understand what to review before choosing.
Save money every month when you compare used car loan interest rates before applying. At Car Pe Cash, we assist you in comparing car loan interest rates for used cars and recommend the best finance options available in Ahmedabad. If you're planning to buy a second-hand car in 2025, this guide will walk you through:
Why comparing interest rates is critical
Current used car loan interest rates (2025)
Factors affecting interest rates
How to calculate EMIS and total loan cost
How Car Pe Cash helps you save more
Do a low-interest car loan rate comparison to get the most affordable EMI options. Find the cheapest used car loan interest rates and make your car purchase more affordable.
Why Consider Buying a Used Car?
Buying a used car comes with various benefits. It's a wise option that few people consider, but it can save you a lot of money and still give you significant value. Find the best-used car loan interest rates easily and save more on your loan repayment. It can be cost-efficient if the car is in good condition and has low mileage. Since it's not recent, you pay only a part of the initial cost.
Here's why investing in a pre-owned car can be a good move:
1. Lower Depreciation
New cars lose 20%–30% of their value in the first year. After a few years, the value can decline by up to 60%. Someone else has already taken that strike with a used car, so you get more value for your money.
2. Cost-effective
How much you spend depends on your budget.
If you're paying cash, your budget relies on how much money you have.
If you're taking a used car loan, you can fetch a slightly greater budget and pay in easy EMIS.
A quick low used car loan rates comparison can help you save big over the loan term.
3. Possible Tax Benefits
In some scenarios, you may get tax rebates when buying a used car—this helps reduce the overall cost.
4. Lower Maintenance charges
Used cars are usually cheaper to maintain than new ones. Many spare components are economical and easily accessible, making maintenance cost-effective and straightforward.
5. Dependability
A well-maintained used car can be just as dependable as a new one. With a decent service history, you can drive worry-free.
Car Pe Cash: One-Stop Solution for Used Car Loans in Ahmedabad
We are experts in various categories of pre-owned car finance solutions:
Used Car Purchase Loans – for individuals and families
Used Commercial Vehicle Loan – for small businesses
Used Car Refinance – get money using your old car
Top-Up Loans – borrow more on existing car loan
Our network includes top banks and NBFCs, guaranteeing you never miss a deal. Whether you are buying from a dealer or straight from a seller, we offer financing opportunities that suit your budget and timeline.
What to Check Before Applying for a Car Loan in 2025
Get closer to your dream car with affordable used car loan interest rates from trusted lenders. When acquiring a car loan in India, ensure to verify the following:
Select the Appropriate Loan for the Car You Want
Ensure the loan you're taking meets the car you plan to buy. If you're uncertain which loan is best for your chosen car model, ask your bank or financial institution for help. They can assist you with the best choice according to your requirements and budget.
Interest Rates and Add-on Charges
If you are considering acquiring a car loan from a bank, ensure you are aware of the whole process. Verify the interest rate, how the loan will be sanctioned, and whether there are any extra fees. Understanding these details in advance is essential, as they can affect whether the loan is a good deal for you. A quick used car finance interest rate comparison helps you find the best deal with lower monthly payments. Used the auto loan rates comparison tool to promptly assess and compare the best offers.
Terms and Conditions
Before taking a car loan, constantly verify the terms and conditions of the bank or creditor. You can consider this as details on their website or by speaking to their staff. It's essential to know the rules before you apply.
Credit Score
Ensure you have a good credit rating and no past payment problems. Getting a car loan from the bank may be more challenging if you've failed to make any payments or had a debt default.
Why Comparing Interest Rates on Used Car Loans Matters
While purchasing a car, it is evident that you should check multiple dealers. Similarly, selecting the initial loan offer you reach without comparing can cost you more over time. Find the best interest rates for used car loans and reduce your total repayment cost. Save time and money with a quick, used car loan rate comparison online before choosing your loan.
Example:
As an example, you borrow ₹ 5 lakhs for 4 years.
At a 12% interest rate, you'll pay ~₹1,34,000 in interest.
At a 9.5% interest rate, you'll pay ~₹1,04,000 in interest.
That’s a ₹30,000 variation just by selecting a better interest rate!
So, before signing any loan agreement, cautiously compare the interest rates and credit terms. Compare car finance rates for used vehicles to secure the most cost-effective loan option.
Best Interest Rate Car Loans from Top Indian Banks in 2025
Here's a quick look at a few of the best banks offering the best car loan options. Use Car Pe Cash to find the best-used car loan interest rates and get the best deal for your budget.
State Bank Of India
State Bank of India (SBI) is one of India's leading banks, offering a wide selection of banking and finance services. It has various divisions, including:
Treasury – Manages investments, foreign currency, and trading in economic deals.
Corporate/Wholesale Banking – Commands loans and services for major businesses and stressed assets.
Retail Banking – Concentrates on consumer banking, individual loans, ATM services, and more.
Insurance – Offers different insurance products and services.
State Bank of India offers among the best car loan interest rates, which makes it a favourite choice for people buying a new car.
Federal Bank
Federal Bank is renowned as one of the top banks for car loans. It offers different banking and financial services, along with:
Consumer business – Provides loans, accepts deposits, and offers services to individuals and small enterprises.
Corporate/Wholesale Banking – Offers loans and banking services to companies, trusts, and other organisations.
Treasury – Manages investments, dealing in government and corporate debt obligations, foreign exchange, and other investment options.
Federal Bank is a trusted option for those looking for good car loan deals.
Canara Bank
Canara Bank is a renowned Indian bank that offers banking services. It has various divisions: Treasury, Retail Banking, Wholesale Banking, Life Insurance, and other services.
The bank offers personal, corporate, NRI, internet, and MSME banking services. Under retail banking, it provides loans for cars, homes, education, and other personal needs.
Bank of Baroda
Bank of Baroda is one of India's major banks, offering various financial and banking services. It operates in India and overseas, with services divided into Treasury, Corporate Banking, Retail Banking, and other areas.
The bank provides personal banking services like savings accounts, current accounts, and fixed deposits. It also offers digital banking options such as internet banking, mobile apps, WhatsApp banking, ATMs, etc.
Bank of Baroda is well known for offering various types of loans, such as home, personal, education, gold, and some of India's lowest car loan interest rates.
Axis Bank
Axis Bank is a leading Indian bank that provides various financial and banking services. Its main areas include Treasury, Retail Banking, and Corporate Banking.
The Treasury segment handles investments, trading, and foreign exchange, and manages central funds.
Axis Bank offers various forms of loans, including home, personal, education, and car loans.
What Impacts the Interest Rate on a Used Car Loan?
Factors That Affect Used Car Loan Interest Rates
Compare used car loan interest rates from top banks to find the best deal for your budget. Take some time to compare car finance rates for used vehicles and save money on your next purchase. Understanding how interest rates are determined can help you get the best deal:
1. Credit Score (CIBIL)
A higher CIBIL score (750+) improves your chances of getting a lower interest rate.
2. Age and Condition of Vehicle
The latest used cars attract better rates than vehicles older than 5-7 years.
3. Income and Employment
Steady income and professional background mitigate risk for financiers and can lead to better terms.
4. Loan Amount and Tenure
Smaller loan amounts or shorter tenures often come with lower rates.
5. Lender Policies
Different banks and NBFCs have different lending criteria—Car Pe Cash helps you choose the right fit.
Why associate with Pe Cash for Your Used Car Loan in Ahmedabad?
Car Pe Cash is not just a commercial lender—we're your car finance partner. Make a used car loan rate comparison online to find the lowest rates from the leading creditor in minutes. Here's how we help you compare, choose, and save:
Lowest Interest Rates (Starting at 9.25%*)
We bargain with various financiers to get you exceptional offers advertised publicly.
Quick Loan Approval
With streamlined documentation and fast eligibility checks, we help you get instant approvals—often within 24 hours.
Zero or Minimal Processing Fees
Unlike flat-fee banks, we offer low or zero-processing fee options.
100% Loan on Car Value
Depending on eligibility, you may qualify for zero-down payment loans.
Expert Support and Documentation Help
Our experts help you understand the fine print, check hidden charges, and submit complete documents to avoid delays.
Want more details on the best offers? Check out our full guide on Car Loan Interest Rates Company: Best Deals and Low Interest Rates by Car Pe Cash.
How to Compare Car Loan Interest Rates with Car Pe Cash
Many wise buyers have easily used the auto loan rates comparison tool to find low-interest deals. We make comparisons easy for you. Here's the process:
Step 1: Fill Out a Simple Application
Visit our office or website and provide basic data about your car and income.
Step 2: Get Personalized Quotes
We match you with various financiers and share tailored offers based on your profile.
Step 3: Compare and Choose
Verify interest rate, EMI, handling charge, and tenure. We guide you on the best choice.
Step 4: Loan Approval and Disbursement
We will arrange the paperwork once you choose a lender and help you get a quick disbursal.
Car Pe Cash: One-Stop Solution for Used Car Loans in Ahmedabad
Comparing lenders helps you lock in the best interest rates for used car loans quickly and easily. We specialize in all types of pre-owned car finance solutions:
Used Car Loans – for individuals and families
Commercial Vehicle Loans – for small businesses
Used Car Refinance – Get money using your old car
Top-Up Loans – borrow more on an existing car loan
Our network includes top banks and NBFCs, ensuring you never miss a deal. Whether you're buying from a dealer or directly from a seller, we offer financing options that fit your budget and timeline.
Conclusion
Buying a car is a significant investment, so planning wise investments is essential. When you apply for a car loan or search for the best car loan in India, you should check your ability to repay, compare interest rates from different banks, and choose the right loan type.
Thanks to car loans, owning a car is now easier for many people. But before taking a loan, compare all your options carefully. Car loans are long-term, and even a slight difference in interest rates (like 0.5%) can save you a lot of money.
Don’t rush—let Car Pe Cash in Ahmedabad help you compare interest rates, choose the best EMI plan, and get your car loan easily! Have questions or need help choosing the right loan? Contact Us today and let Car Pe Cash guide you!
FAQs
1. What is the processing fee for a used car loan?
A processing fee is a one-time charge by the bank to cover paperwork and loan handling costs. For example, Car Pe Cash charges up to 5% of the total loan amount as a processing fee.
2. What are the best-used car loan interest rates today?
You can acquire used car loan interest rates within 5% to 6% if you have a decent credit score. If your credit is outstanding, you might get rates as low as 4%.
3. Which bank has the lowest interest rate on a used car loan?
Punjab National Bank offers the lowest interest rate for a car loan with a 5-year term.