Rs. 1 lakh – Rs. 2.50 crore
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Used Car Ownership Made Easy
In summary
A used car loan can help you spread the cost of an eligible pre-owned car instead of funding the entire purchase from savings.
- Loan amount: Bajaj Finance Used Car Loan offers Rs. 1 lakh to Rs. 2.50 crore, subject to assessment
- Repayment tenure: Choose from 12 months to 84 months based on the applicable offer
- Maximum financing: Up to 100% of the assessed car value
- Eligibility: Your age, income, employment profile, credit history, repayment capacity, documents, and selected vehicle are assessed
- Planning: Compare the EMI, total interest, applicable charges, and expected car ownership costs before applying
A used car loan works best when both the selected vehicle and the repayment commitment fit your financial position.
Last updated: September 2026
What is a used car loan?
A used car loan is financing specifically meant for purchasing an eligible pre-owned vehicle. You borrow the required amount and repay it with interest over an agreed tenure through equated monthly instalments (EMIs).
The vehicle forms part of the lending assessment. This makes used car financing different from unsecured borrowing, where no specific car is evaluated as part of the loan.
Your application therefore has two sides. Bajaj Finance assesses your financial profile, while the selected car is also checked against the applicable vehicle requirements.
Before borrowing, decide whether financing improves your overall purchase plan. Paying the entire price from savings avoids loan interest, while financing lets you retain more of those savings for other needs.
How does a used car loan work?
The process begins after you identify the pre-owned car you want to purchase and work out how much of its price you need to finance.
You provide your personal, employment, income, and vehicle information. Bajaj Finance then assesses your eligibility, repayment capacity, credit profile, supporting documents, and the selected car.
If the application is approved, the sanctioned amount and repayment terms are confirmed. You then repay the loan through monthly instalments according to the agreed schedule.
The EMI contains repayment of principal and interest. Your loan amount, applicable interest rate, and tenure determine how large that monthly commitment is.
Bajaj Finance Used Car Loan at a glance
Before choosing a vehicle around a loan amount, compare the financing parameters with the amount you actually need.
Here are the current product details:
| Loan detail | Bajaj Finance Used Car Loan |
| Loan amount | Rs. 1 lakh to Rs. 2.50 crore |
| Maximum financing | Up to 100% of the assessed car value |
| Repayment tenure | 12 months to 84 months |
| Interest rate | 10% to 18.25% p.a. |
| Credit score | CIBIL Score of 650 or higher |
| Vehicle requirement | Eligible private car, subject to vehicle age and ownership conditions |
Last updated: September 2026
The maximum financing available should not become your borrowing target automatically. First decide how much you can contribute while retaining enough money for other expenses.
If you already have a vehicle in mind, you can also check your pre-approved used car loan offer before starting the full application.
What does a used car loan cost?
The borrowing cost includes more than the interest rate.
The Bajaj Finance Used Car Loan offers interest rates ranging from 10% to 18.25% p.a. Your applicable rate depends on the assessment of your profile and loan application.
You should also review the applicable processing fee, documentation charges, prepayment terms, foreclosure conditions, and other relevant costs before accepting an offer.
Check the current used car loan interest rate and charges when comparing the complete borrowing commitment.
Do not compare two repayment options only through their EMI. A lower monthly instalment achieved through a longer tenure can increase the total interest paid.
How should you plan the EMI?
Your EMI should fit alongside essential expenses, existing debt, regular savings, and the running costs of the car.
The monthly instalment is calculated using the reducing-balance formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where:
- P = Principal loan amount
- R = Monthly interest rate
- N = Tenure in months
Consider an illustrative example.
Amit, aged 35, lives in Bengaluru, earns Rs. 95,000 per month, and has a CIBIL Score of 774. He wants to finance Rs. 5 lakh for a pre-owned car.
Assume an illustrative rate of 14% per annum for 60 months. These figures are examples and are not Bajaj Finance product terms.
| Loan detail | Illustrative value |
| Principal | Rs. 5 lakh |
| Interest rate | 14% per annum |
| Tenure | 60 months (5 years) |
| Approximate EMI | Rs. 11,634 per month |
| Approximate total interest | Rs. 1.98 lakh |
| Approximate total repayment | Rs. 6.98 lakh |
Amit should compare the Rs. 11,634 monthly EMI with his existing commitments rather than looking at the loan amount alone.
Use the used car loan EMI calculator to test different loan amounts and tenures before applying.
What are the eligibility criteria?
Your eligibility depends on factors such as age, income, employment profile, credit history, repayment capacity, and the selected vehicle.
The applicable requirements differ in some areas for salaried and self-employed applicants.
| Criteria | Salaried applicants | Self-employed applicants |
| Nationality | Indian | Indian |
| Age | 21 years to 80 years* | 21 years to 80 years* |
| CIBIL Score | 650 or higher | 650 or higher |
| Income | Minimum Rs. 20,000 per month | ITR for the previous 2 years |
| Experience or income assessment | At least 1 year of work experience | Income assessed through ITR |
*You should be 80 years old or younger at the end of the loan tenure.
→ Quick definition: A Credit Information Bureau (India) Limited Score (CIBIL Score) is a three-digit number, ranging from 300 to 900, that reflects your credit repayment history. Lenders use it to assess how reliably you have repaid past loans and cards.
Meeting these criteria lets you apply but does not guarantee sanction. Existing commitments, repayment capacity, income stability, supporting records, credit history, and vehicle assessment can also affect the decision.
What documents do you need?
The documents required depend mainly on whether you are salaried or self-employed. Vehicle records are also needed because the selected car forms part of the assessment.
For salaried applicants, keep these records ready:
- Know Your Customer (KYC) documents
- PAN card
- Employee ID, where applicable
- Salary slips for the previous 2 months
- Bank statements for the previous 3 months
- Vehicle Registration Certificate
- Vehicle insurance copy
For self-employed applicants, keep these records ready:
- KYC documents
- PAN card
- Income Tax Return (ITR) proof for the previous 2 years
- Bank statements for the previous 3 months
- Vehicle Registration Certificate
- Vehicle insurance copy
Additional documents can be requested depending on verification requirements.
Make sure the information in your application matches the supporting records. Differences in income, employment, identity, or vehicle information can require further verification.
How do you apply for a used car loan?
Once you have checked the car, prepared your documents, and planned the repayment, you can proceed with the financing application.
- Open the eligibility form: Click on ‘CHECK ELIGIBILITY’ to begin.
- Verify your mobile number: Enter your number and confirm it with the one-time password (OTP).
- Fill in your personal details: Add the information requested in the application form.
- Enter your employment and income information: Provide the details needed to assess your repayment profile.
- Add the car details: Share information about the vehicle you plan to finance, where applicable.
- Complete KYC and verification: Submit the required Know Your Customer information and complete the applicable checks.
- Submit the application: Review the information and send the application for assessment.
Approval and disbursal remain subject to your eligibility, vehicle assessment, document verification, and completion of the required checks. A Bajaj Finance representative can also assist with pending documentation or verification steps.
What do our customers say about us
Amit Chauhan
Reviewed on 04 Mar 2025
Smooth and transparent used car loan process. The interest rates were competitive, and the documentation was minimal. The team guided me clearly at every step, making my used car purchase simple and stress-free. Highly recommended for quick approvals.
Ashwin Kamble
Reviewed on 24 Feb 2025
Clear guidance, quick approval, and flexible repayment options made buying my used car easier than expected. The team handled everything professionally. Very satisfied and would definitely recommend their used car loan.
Rohit Sharma
Reviewed on 12 Apr 2025
I had a great experience while applying for my used car loan. The process was quick, and the interest rate helped me manage the purchase better. Customer service was helpful throughout. Highly recommended for a smooth used car financing experience.
Ajay Kulkarni
Reviewed on 08 Dec 2024
My used car loan experience was simple and hassle-free. The approval was quick, the repayment options were flexible, and the team explained every step clearly. It helped me buy my preferred used car without financial stress. I would surely recommend it.
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Frequently asked questions
Overview
Repayment
What is a used car loan?
A used car loan finances the purchase of an eligible pre-owned vehicle. Instead of paying the full car price from your own funds, you borrow the required amount and repay it with interest through monthly instalments. The lender assesses both your financial profile and the selected vehicle. The amount, rate, tenure, and final terms therefore depend on the applicable loan assessment.
Can I finance the full value of a used car?
Bajaj Finance Used Car Loan offers financing of up to 100% of the assessed car value, subject to the applicable assessment. The amount sanctioned can depend on your eligibility, repayment capacity, credit profile, documents, and the selected car. Even when higher financing is available, consider whether contributing some of your own funds would produce a repayment structure that better fits your monthly budget.
What CIBIL Score do I need for a used car loan?
The Bajaj Finance Used Car Loan eligibility criteria require a CIBIL Score of 650 or higher. Meeting this criterion allows you to apply but does not guarantee approval or a particular interest rate. Bajaj Finance also assesses your income, existing financial commitments, repayment capacity, supporting documents, and the selected vehicle before the final loan decision is made.
Should I choose the longest available repayment tenure?
Not automatically. A longer tenure lowers your EMI when the principal and interest rate remain unchanged, but it increases total interest because you repay the loan for more months. A shorter tenure raises the EMI and reduces total interest under the same assumptions. Choose a tenure that keeps the monthly payment manageable without extending repayment further than your financial position requires.
Can I get a used car loan for any second-hand car?
No. The selected vehicle must meet the applicable financing requirements. Bajaj Finance Used Car Loan is available for eligible private cars, subject to vehicle age and ownership conditions. Before applying, check the Registration Certificate, ownership history, insurance, vehicle condition, and any existing hypothecation. Completing these checks first helps prevent you from arranging finance around a car that does not qualify.
Disclaimer
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