Purchasing a used car is a cost-effective approach to owning a four-wheeler without spending too much immediately. If you need support with the cost, you can go for a used car loan to buy the car you want. Car Pe Cash brings a trusted Used Car Loan Guide to make the loan process smooth and hassle-free. Searching for the most recent loan options? Check out our detailed guide on Second Hand Car Loan 2025: Compare Interest Rates & Financing Options to make an informed decision.
With Car Pe Cash, you can get up to 95% funding for a used car, spanning from ₹50,000 to ₹10 lakhs. The loan application process is straightforward and prompt. Find the best used car loan rates with Car Pe Cash for easy and cost-effective financing. Interest rates start as low as 8.99% per year, and you can determine a flexible repayment period between 12 to 60 months. The final rate depends on the car’s model, condition, and your credit rating. Wondering how to get a used car loan? Car Pe Cash makes the process straightforward and effortless.
To make the process simpler, keep a few important tips in mind. Also, using a used car loan calculator can help you plan better—read on to learn how! Apply for a used car loan effortlessly with Car Pe Cash and enjoy fast approval and low EMIs.
What is a Car/Auto Loan?
A car or auto loan is money you borrow to buy a personal car. You can also get a loan to buy a commercial vehicle. You don’t need to give separate collateral—the car itself is used as security for the loan. Understand the steps to apply for a used car loan with the appropriate documents and eligibility checks. Know the basic car loan eligibility for used cars before starting your loan application.
You can acquire loans for both new and used cars (note: two-wheeler and commercial vehicle loans are treated separately). Banks typically finance equal to 90% of a new car’s cost and approximately 75% for a used one. You refund the loan in monthly instalments over a planned period of 12 to 84 months. Learn how to get a car loan for used vehicles with simple steps and fast approval. A pre-approved used car loan can accelerate the car purchase and offer the best deals.
What are the Types of Car Loans?
Before analysing the types of car loans, you must have a clear understanding of the car you wish to acquire. The loan you get will rely on the car type, the loan amount (called the principal), the interest rate (which differs from lender to lender), and the repayment period. Car Pe Cash offers smart options for car loans for used vehicles at low interest rates. Looking to apply for a used car loan? Car Pe Cash offers a smooth and worry-free method.
Car loans are primarily of two types:
New Car Loans
This loan is for those planning to buy a brand-new car from the showroom. New car loans typically follow captivating interest rates. For example, Car Pe Cash offers loans from ₹2 lakh to ₹ five crore at interest rates between 8.4% to 11.90% (as of 24.01.2023), with a repayment period of up to 84 months. Compare and determine the best used car loan rates to save more on your EMIs.
Pre-Used Car Loans
This loan is for buying second-hand cars that are not older than 5 years. You can get a loan between ₹2 lakh to ₹50 lakh with interest rates fluctuating from 8.4% to 11.90%. The repayment period can go up to 60 months, depending on the car's age. Understand the advantages of acquiring a pre-approved used car loan before visiting the dealership.
What Documents Are Needed for a Car Loan in India?
Understand the primary documents, eligibility, and EMI tips in this straightforward Used Car Loan Guide. Once you have selected a loan amount and repayment term, ensure you have all the essential documents ready. So, it's necessary to understand the requirements of documents for a car loan? Here we have mentioned what to know before applying for a car loan – from documents to credit score tips. Get professional help from Car Pe Cash to procure the best used car loan rates in just a few steps.
Identity Proof: You may use documents such as PAN card, Aadhaar card, driving license, passport, or voter ID as valid ID proof. Understand the key used car loan requirements like ID proof, income documents, and car papers.
Age Proof: The primary applicant should be at least 21 years old, and the co-applicant must be at least 18. To confirm this, you’ll require an age-proof document like a passport, ration card, Aadhaar card, PAN card, or certificate of birth.
Address Proof: You can use government-issued documents like Aadhaar card, PAN card, electricity bill, etc., as valid address proof.
Income Proof: Salaried individuals need to maintain the last three months’ salary slips, six months’ bank account statements, Form 16, and the most recent ITR. Self-employed persons should provide 3 months’ bank statements, balance sheet, profit & loss account, and ITR.
Signature Verification: This is required to support that your signature is real.
Photographs: You must provide two recent passport-size photos.
Why a Car Loan is a Smart Way to Buy a Car
Car loans are beneficial in the modern world. Sometimes it's not always easy to purchase what you've worked for with just your salary, but a car loan can help you acquire the car you’ve always desired. You can own a car at an early age and no longer depend on public transport. Enjoy weekend trips with your family, too. With proper planning, you can select the model you like and pay in easy monthly EMIs. You could even plan for a second car in the forthcoming.
However, note that salaried individuals don’t get tax relief on car loans. The Used Car Loan Guide helps you understand the steps before requesting a second-hand car loan. Know the process of applying for a car loan for used vehicles with the right documents and tips. Understand what to know before applying for a car loan to avoid delays and hidden charges. Understand and follow easy steps to get a used car loan and drive home your dream car.
Everything About Car Loan Eligibility in 2025
Car Pe Cash explains what to know before applying for a car loan to help you make the right choice. Learn how to get a used car loan with the right documents, eligibility, and quick approval tips. Car loan eligibility relies on certain primary factors. Learn the simple steps to get a used car loan, from checking eligibility to submitting documents. Follow these used car financing tips to make your credit operations smooth and economical. To quicken and simplify verification, make sure you meet the following:
Credit Score: A worthy credit score helps you get a car loan easily. Try to keep a strong score with your bank. Meeting all used car loan requirements helps you get faster approval and better loan terms. Understanding how used car loans work helps you choose the right lender and loan terms.
Application Form: Fill out all the necessary details and submit valid documents.
Verification: The bank will verify your profile, credit rating, and additional information before endorsing your loan.
Approval Time: Car loans usually get approved in 1 to 5 days, depending on your eligibility. Check important factors that affect car loan eligibility for used cars, like age, income, and credit score.
These practical used car loan tips to establish the best deal with low interest and easy EMIs. Car Pe Cash guides you through the right steps to get a used car loan with fast approval and low interest.
Car Loan Eligibility: What Else Do You Need to Qualify?
Car Pe Cash makes it easy to fulfil used car loan requirements with simple steps and expert support.
Applicant must be an Indian resident.
Your age should be at least 21 years, and the financing must be repaid before you turn 70.
For used cars, the car’s age plus the loan period must not be more than 96 months.
Salaried people should have 3 months to 2 years of professional experience.
Consulting individuals need 2 to 3 years of professional experience.
Follow these wise used car loan tips prior to applying to prevent additional charges and delays. You can visit the Car Pe Cash website to check what applies to you. Car Pe Cash makes it easier to get a pre-approved used car loan with minimum paperwork and fast approval.
CIBIL Score for Car Loan
Similar to other loans, your CIBIL score plays a significant role in getting a car loan approved. Banks use it to check how dependable you are with repayments. Whereas it's not the only thing they look at, it’s an essential element. A higher score boosts the opportunities for fast approval. If your score is 701 or above, you have a useful advantage. Car Pe Cash measures expert used car loan tips to make your loan endorsement quick and stress-free. Consider these smart used car financing tips to get better interest rates and adaptable EMIs. Learn how used car loans work so you can plan your budget and EMIs smartly.
Car Loan Interest Rates
Car loans come with either fixed or floating interest rates.
Fixed Interest Rate: The rate remains the same across the financing period. This makes it simpler to plan your EMIs and handle your budget. However, fixed rates are often higher.
(Note: Car Pe Cash does not currently offer fixed-rate auto loans.)
Floating Interest Rate: The rate changes according to market terms and MCLR (Marginal Cost of Funds Based Lending Rate). If rates increase, your EMIs increase. If the interest rate is cut, your EMIs will reduce. Floating rates are usually lower but carry higher risk because of changing monthly payments.
Fixed vs. Floating Car Loan Interest Rates
While selecting between fixed and floating car loan interest rates, it's significant to consider how each one works. Fixed interest rates are often higher but offer stability, as your EMI remains the same across the credit term. This makes funding simpler and lowers the risk of unplanned payment changes. Fixed rates are best suited for short-term loans, typically between 3 to 10 years, and are ideal for creditors who choose security and typical monthly instalments.
Alternatively, floating interest rates are usually lower but may change according to the MCLR (Marginal Cost of Funds Based Lending Rate). This means your EMIs may rise or down depending by market trends, making it harder to manage a fixed monthly budget. Floating rates come with higher risk but may lead to savings if interest rates drop. They are usually recommended for long-term loans ranging from 20 to 30 years and for borrowers who are comfortable with fluctuations in their EMI.
Fixed rates offer calmness, whereas variable rates offer potential cost savings if the market terms are favourable. Your choice should rely on your economic circumstances, risk tolerance, and the loan tenure you’re planning for. This guide explains how to get a used car loan easily with Car Pe Cash’s expert support.
Car Loan Prepayment – A Rational Explanation
Car loan prepayment means paying off part of your loan early, similar to other loans. When you make a prepayment, you lower the total credit amount and the interest you have to pay. Few banks charge fees for this, like a foreclosure penalty (if you repay the full or part of the loan before the end date) and a processing fee (when the loan is approved).
If you're taking a car loan from Car Pe Cash, you can prepay after paying just one EMI. The wonderful news is – there’s no penalty on the prepaid amount. Car Pe Cash helps you understand car loan eligibility for used cars to ensure quick and easy approval. Car Pe Cash explains how used car loans work in simple steps to make your loan journey easy.
How to Choose the Right Car Loan Repayment Period
Car loans do not provide tax rebates, so it’s planning wisely is prominent. If you're purchasing a luxury car, selecting shorter loan terms will produce higher EMIs. Before applying for a car loan, use the Car Pe cash car loan EMI calculator to determine the best repayment opportunity that suits your budget.
Opt for the Car Loan Tenure Based on These Elements:
Monthly Surplus: Verify the amount you left with after all your recurring expenses. Remember to include additional financial commitments like SIPs, insurance premiums, EMIs, and credit card bills. Choose a term that suits your budget without impacting your other financial goals.
Prepayment Plan: If you plan to repay part of the loan early, check the prepayment or foreclosure charges. This can help you decide whether a short or long tenure works best. Prepaying can reduce your interest cost.
With Car Pe Cash, you can make a prepayment after the first EMI without any additional charges.
Why You Should Choose Car Pe Cash’s Car Loan
Car Pe Cash Car Loan – Primary Overview
Car Pe Cash offers one of the lowest interest rates on car loans, in addition to low monthly EMIs for up to 7 years. The bank charges the lowest handling charges and has no prepayment charges.
You can also get a 0.5% interest rate discount if you offer 50% liquid security as collateral. If you're already repaying a home loan with Car Pe Cash and have a decent repayment record, you may get a further discount on your car loan interest rate.
Explore Car Pe Cash's services like Used Cars Purchase Loan, Used Car Refinance Loans, Used Car Top-Up Loan, and Used Commercial Vehicle Loan to find the best financing option that suits your needs.
You can apply online through the website https://carpecash.in
Conclusion
Buying a used car in India takes wise planning, thorough checking, and the correct decisions. The tips in the guide above can help you make better decisions. By following a step-by-step process, performing appropriate inspections, and planning your purchase, you can explore the used car market. Car Pe Cash shares practical used car financing tips to help you finance your dream car comfortably.
Acquiring car finance in Ahmedabad is straightforward if you follow the necessary steps. If you're planning to take a car loan, these guidelines will help you avoid paying more than necessary.
Always plan your finances first. Choose your loan amount, EMI, and tenure wisely—they’re key to a smooth buying experience.
Ready to get an auto loan? Apply with Car Pe Cash today! Still uncertain about which loan is best for you? Contact us—we’re here to help.
FAQs
1. What documents are required to apply for a used car loan?
You’ll need primary documents such as ID proof (Aadhaar, PAN), address proof (like electricity bill or Aadhaar), income proof (salary slips or ITR), passport-size photos, and car-related documents such as the registration certificate (RC) and insurance. These help the bank check your information before the approval of the loan.
2. Can I get a used car loan without presenting my income proof?
In most instances, no. Banks need you to exhibit that you can repay the loan, so they request income proof. Some financiers may authorise your loans without it, but they usually charge higher interest rates. It’s better to keep your salary slips or tax returns ready for better loan deals.
3. Why required to show car documents for a used car loan?
The bank reviews the car documents to confirm that the car is legal and safe to buy. Papers like the registration certificate (RC), insurance, and pollution certificate show that the car fits with the seller and tracks government rules.