Having a car makes life a lot easier as you don’t have to depend on public transport to commute. But, in case you don’t have the funds required to purchase a new car, you can always opt for a second hand car. 

Various lenders provide 2nd hand car loans or pre-owned car loans that you can choose from. Let us look into used car loans in detail.

What is a Pre-owned Car Loan?

Pre-owned car loans or 2nd hand car loans are secured loans taken for purchasing a pre-owned vehicle. These loans are provided by most banks and are quite affordable. The repayment term can range from 1 year to 7 years and up to 90% of the car value is usually provided as a loan by certain lenders.

You can also use moneyview instant personal loans as a ‘second hand car loan’. 

Features and Benefits of a Used Car Loan

Given below are some of the salient benefits and features of a ‘second hand car loan’ -

moneyview instant personal loans come with a myriad of features and benefits which make it a great choice to be used as a 2nd hand car loan. The following are the benefits and features - 

Eligibility for Second Hand Car Loan

The eligibility criteria for a used car loan will vary depending on the lender. However, the basic eligibility criteria are given below -

Documents for Used Car Loan

Given below are some of the general documents required for a second-hand car loan -

Please note that the documentation requirements will vary from one lender to another.

Fees and Charges for 2nd Hand Car Loan

Given below are the fees and charges of used car loans -


Fees and Charges

Interest Rates

11.25% p.a. onwards

Foreclosure Charges

Upto 6% of principal outstanding

Processing Fee

0.5% of the loan amount (minimum Rs.3,500/- and maximum Rs.8,000/-)

Repayment Term

Up to 7 years

Please note that the fees and charges will vary based on the lender.

Used Car Loan Interest Rates of Top Lenders

Here are the used car loan interest rates of some of the top banks in India - 


Interest Rate



13.75% onwards

Up to 7 years


Up to 13.49%

Up to 7 years


11.25% onwards

Up to 7 years

Axis Bank


Up to 7 years

Bank of Baroda

11.90% to 14.65%

Up to 7 years


Bringing home a second-hand car is a great way to save money as well as give a new home to a pre-loved vehicle. But there are some things that you must keep in mind before making the decision -  

While the interest rates for used car loans are lower than personal loans, they are still higher than those of new car loans

Check the car to be purchased thoroughly. Take it for a test drive, ensure that all documents are in place, and check the vehicle history as well

Ensure that the registration certificate and insurance are transferred to your name once you purchase 

You may have to provide a downpayment in order to get a second hand car loan

Even though the interest rates of personal loans are higher than those of used car loans, they have many other benefits. If you opt for instant personal loans from moneyview, you can get 100% of the vehicle price, and also get the loan amount within 24 hours. 

To know more, visit the moneyview website or download the app

Pre-Owned Car Loan - FAQs

Yes, most lenders do impose a foreclosure charge for second hand car loans.

A used car loan is a secured loan as the vehicle in question will serve as collateral.

Yes, most lenders require a downpayment to disburse pre-owned car loans.

The interest rate for a pre-owned car will vary based on the lender, your credit score, value of the car in question, etc. The interest rate for pre-owned car loans usually start at around 7% per annum.

Ans: Having a high CIBIL score is important to get a loan. Your CIBIL score determines your creditworthiness and higher the credit score, better is your chance of getting a loan. If your CIBIL score is below 700, your loan application could get rejected or the interest rate imposed will be very high.

However, you can still avail a personal loan from Money View as long as your CIBIL score is 650 and above which can be used for any purpose.


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