5.7cr+
Satisfied Customers
Up to 100% On-Road Funding
Upgrade to Your Perfect Ride With Zero Hassle
Finance your pre-owned car with flexible tenure and quick support for transfer documentation.
65+
Lending Partners
Rs.65k Cr+
Loans Disbursed
Why Choose Six Finance?
Experience hassle-free borrowing with flexible loan options, instant credit tracking, and rapid approvals designed around your unique financial journey.
Flexible Repayment Plans
Life changes, and your loan should adapt with it. We offer customizable repayment schedules and loan amounts designed to fit comfortably within your budget.
Fast, Secure & Transparent
Apply with complete peace of mind. Our streamlined, bank-grade encrypted platform ensures lightning-fast approvals while keeping your data strictly protected.
Personalized Financial Solutions
We look beyond the numbers to understand your story. Enjoy a borrowing experience that is custom-tailored specifically to your unique financial goals and needs.
Loan Details
Used Car Loan Calculator
Calculate your monthly EMI and total interest for a used car loan.
Instant Approval
No Hidden Charges
100% Digital Process
Representative Example:
Borrow ₹3,00,000 over 12 months at 9.99% APR. Total repayment: ₹3,16,480.45 with monthly EMIs of ₹26,373.37.
EMI Calculator
Select Your Bank
Enter Loan Amount
₹3,00,000
50K50L
9.99
8%30%
1
1Y10Y
Monthly EMI
₹26,373.37
Total Interest
₹16,480.45
What is a Used Car Loan?
A used car loan is a financing option for purchasing a pre-owned vehicle. Lenders finance a percentage of the car's current market valuation rather than the invoice price.
Repayment is done via EMIs with tenures typically ranging from 1 to 5 years. The maximum tenure often depends on the age and condition of the car being purchased.
Approval depends on:
- Valuation report of the car
- Age of the vehicle (usually < 10 years)
- Applicant's income stability
- Credit score & repayment history
Interest rates for used car loans are generally slightly higher than new car loans due to the depreciation risk of the asset.
Drive Your Choice, Financing is Ours
The pre-owned car market is booming. We ensure you aren't stuck with high-interest rates just because it's a second-hand car. We offer loans up to 90% of the car's valuation with quick verification.
Used Car Loan Benefits
- Funding up to 90% of car valuation
- Flexible tenure up to 5 years
- Competitive interest rates
- Quick RC verification and transfer support
- End-to-end assistance with ownership transfer
- Loans available for cars up to 10 years old
Financial Guide
Used Car Loan Rates
Used car loan rates are higher than new cars, typically starting from 12% to 16% p.a., depending on the age and model of the car.
Buying a Pre-Owned Car?
Financing a second-hand car involves valuation and transfer checks:
1
Valuation is Key
Lenders will fund based on their internal valuation, not the seller's asking price. Be prepared to pay the difference.
2
Age of Vehicle
Most lenders do not finance cars older than 8-10 years at the time of loan maturity. Check age restrictions.
3
RC Transfer
The loan is usually disbursed to the seller, but RC transfer to your name is mandatory within a specific timeframe.
4
Insurance Validity
Ensure the car has valid insurance. Lenders require comprehensive insurance with their hypothecation marked.
5
Compare with Personal Loan
If the used car loan rate is very high (15%+), compare it with a Personal Loan which might be cheaper and hassle-free.
Used Car Loan Eligibility
Eligibility criteria Lenders check both the buyer and the car:
Age: 21–65 years.
Income: Minimum Rs. 15,000–20,000 per month.
Work Experience: Minimum 1 year in current job.
Car Age: Car should not be older than 8-10 years at loan maturity.
Documents: Valid RC, Insurance, and seller's KYC.
Used Car Finance Options
Drive your dream car for less with flexible pre-owned car loans.
Used Car Loan Documents
Requires documents from the buyer as well as vehicle details.
| Requirements | Buyer (Applicant) | Vehicle / Seller Docs |
|---|---|---|
| Identity/Address | PAN, Aadhaar, Voter ID, Driving License | Seller's KYC (if buying from individual) |
| Income Proof | ITR or Salary Slips (2-3 months) | N/A |
| Vehicle Documents | N/A | Copy of RC, Valid Insurance Policy, Pollution Certificate |
| Transfer Docs | Signed Form 29 & 30 | NOC from Seller's Bank (if previously hypothecated) |
Buying Pre-Owned
Valuation Check
- Loan is based on Bank's valuation, not Seller's price.
- If seller asks 5L but bank values at 4L, you get loan on 4L.
Interest Rates
- Rates are 2-5% higher than new car loans.
- Compare with Personal Loan rates before deciding.
Age of Vehicle
- Car age + Loan Tenure should usually not exceed 8-10 years.
- Older cars attract higher interest rates.
RC Transfer
- Transferring RC to your name is mandatory.
- Bank holds the RC copy until loan closure.
Used Car Loan Charges
Includes costs for vehicle verification and transfer:
| Particulars | Charges |
|---|---|
| Processing Fees | 2% to 3% of loan amount |
| Valuation Charges | ₹ 500 - ₹ 800 |
| Stamp Duty | As per state actuals |
| RC Transfer Charges | ₹ 500 - ₹ 2,000 (Agent/RTO fees) |
| Foreclosure | 5% to 6% of principal outstanding |
Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.
Used Car Finance Offers
Buy your dream pre-owned car with finance options from these top auto lenders.
| Bank/NBFC | Interest Rate |
|---|---|
| HDFC Bank | 12.50% onwards |
| Mahindra Finance | 13.00% onwards |
| IDFC First Bank | 13.50% onwards |
Used Car Loan vs Personal Loan
How to fund your second-hand car purchase.
| Used Car Loan | Personal Loan |
|---|---|
| Secured (Car is hypothecated) | Unsecured (Car not hypothecated) |
| LTV: 70-80% of valuation | Amount based on salary eligibility |
| Rate: 12% - 16% | Rate: 10.5% - 15% (can be lower) |
| Rc Transfer mandatory for loan | Rc Transfer is independent |
Valuation is Key
Loan amount depends on the bank's valuation of the car, not the seller's price.
Car age + loan tenure generally cannot exceed 8-10 years.
Interest rates are higher than new car loans.
Buying Process
Identify the car and negotiate the price.
Submit car documents (RC/Insurance) to the bank for valuation.
Once sanctioned, ownership transfer forms (29/30) are signed.
Post-disbursement, RC must be transferred to buyer's name with bank hypothecation.
How to Calculate Used Car Loan EMI Online?
You can calculate your used car loan EMI using a free online used car loan EMI calculator. You just need to enter your interest rate, loan amount and tenure in the calculator to get instant and accurate results.
Used Car Loan vs Personal Loan
Financing a pre-owned car can be done via two routes.
| Parameter | Used Car Loan | Personal Loan |
|---|---|---|
| Collateral | Car is Hypothecated | Unsecured (No Hypothecation) |
| Valuation | Mandatory by Bank | Not Required |
| LTV | 70-80% of Car Value | Based on Income Eligibility |
| Interest Rate | 12% - 16% | 10.5% - 15% (Profile dependent) |
Drive Your Dream
Rahul T. — First Car
"I found a great deal on a 3-year-old Swift. Six Finance helped me get 80% funding on the valuation. They even handled the RC transfer paperwork."
Simran Kaur — Upgrade
"Wanted an SUV but new ones were too expensive. Bought a used Creta with a loan at reasonable rates. The process was smooth despite buying from an individual seller."
Buying a Pre-Owned Car?
Financing a used car is different from a new one:
- Get the car valued by the bank before agreeing on a price with the seller.
- Ensure the car is not older than 8-10 years at loan maturity.
- Verify that the RC transfer to your name is part of the deal.
- Check if the previous owner has cleared their loan (NOC available).
- Compare interest rates; they are higher than new car loans.
Used Car Loan Facts
- Loan amount is 60-80% of the valuation price, not purchase price.
- Interest rates range between 12% to 18%.
- Tenure is usually restricted to 3-5 years.
- Comprehensive insurance is mandatory for financing.
- Loans are available for both dealer and private seller purchases.
Our Financial Solutions
Car Financing Options
Drive your dream car with our flexible financing options for both new and pre-owned vehicles.
Used Car Loan
Finance your pre-owned car with competitive interest rates. Flexible tenure and minimum documentation for certified used cars.
New Car Loan
Drive your dream car home with our new car financing. Attractive interest rates, insurance coverage, and quick approval process.
Used Car Loan Due-Diligence Focus
Reviewed by Six Finance editorial and credit-analysis team · Last updated: 2026-01-15
Intent-specific checkpoints
- Check vehicle age caps and lender valuation before negotiating price.
- Validate ownership chain, RC status, and insurance continuity details.
- Model EMI on assessed value rather than seller asking price.
- Plan RC transfer and hypothecation timelines as part of purchase flow.
Methodology and compliance notes
- Used-car guidance combines valuation, ownership, and financing checks.
- Examples assume clean title history and lender-accepted vehicle condition.
- Eligibility outcomes vary by model year, mileage, and borrower profile.
- Borrowers should verify documentation and transfer compliance locally.