Finance your dream ride with a used car loan

Whether you have your eye on a stylish sedan or a sturdy SUV, second-hand car loans offer a straightforward solution for purchasing a used car without straining your finances. Securing a used car loan provides the flexibility to choose from a variety of cars and split the acquisition cost into manageable EMIs.

You can now ease your financial journey of owning a vehicle with a pre-owned car loan from Bajaj Finance. Enjoy a smooth application process by submitting your details and documents online. Once you submit your online application, our representative will contact you and guide you through the next steps.

3 unique variants of our used car loan

  • Flexi Term Loan

    Let's say you take out a used car loan for Rs. 2 lakh for 24 months. You pay regular monthly instalments for the first six months (EMIs). You would have paid back about Rs. 50,000 by now.

    You need Rs. 50,000 for something you didn't expect. Just sign-in to our customer portal – My Account and borrow Rs. 50,000 out of your Flexi Term Loan account. You got a bonus of Rs. 1,00,000 three months later and would like to pay back some of your Flexi Term Loan. This time, all you have to do is go to My Account and pay back a part of your Flexi Term Loan.

    With every withdrawal or deposit, your interest is automatically changed, and you only pay interest on the amount you still owe at any given point. Your EMI includes both the amount you owe and the adjusted interest.

    Unlike other loans, there are no fees or penalties for paying back your Flexi Term Loan or taking money out of your account.

    This version of a pre-owned car loan is perfect for the way people live now, when managing money can be hard to predict.

  • Flexi Hybrid Loan

    This is another variant of used car loan we offer, and it works largely in the same way as a Flexi Term Loan. The only difference is that your EMI will only include interest for the first part of the loan, which could be different depending on your loan tenure. For the rest of the time, your second-hand car loan will consist of the interest and the principal.

  • Term Loan

    This is same as any other used car loan. You take out a loan for a certain amount of money, which is then split into equal monthly payments that include both the principal and the interest.
    If you pay off your second-hand car loan before the end of its tenure, you will have to pay a part-prepayment or foreclosure fee.

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Features and benefits of our used car loan

Features and benefits of our used car loan 00:39 ‌

All you need to know about our used car loan

Watch this video to know everything about the features of our used car loan.

  • 3 unique variants

    3 unique variants

    We offer 3 unique variants for our used car loan – Term Loan, Flexi Term Loan and Flexi Hybrid Loan. Choose the one that works best for you.

  • High-value finance

    High-value finance

    Get asset-based finance of up to 100% of the car’s value at a competitive interest rate with our used car loan.

  • Loan of up to

    Loan of up to Rs. 77 lakh

    Get funds ranging up to Rs. 77 lakh to bring your dream car home.

  • Flexible tenures

    Flexible tenures

    Repay your second-hand car loan easily with convenient repayment options ranging from 12 months to 72 months.

  • Money in your bank account in

    Money in your bank account in 48 hours*

    Get the used car loan amount credited to your account within 48 hours* of approval.

  • Doorstep assistance

    Doorstep assistance

    Get doorstep support to complete your loan application process – from collecting documents to transferring your registration certificate.

  • Pre-approved offers

    Pre-approved offers

    Check your pre-approved offer on a used car loan by simply entering your mobile number and OTP and get funds instantly.

  • No hidden charges

    No hidden charges

    Our fees and charges are clearly mentioned on our loan documents and on this page. Read them in detail before applying.

  • *Terms and conditions apply

    Still haven’t found what you’re looking for? Click on any of the links at the top of this page.

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Eligibility criteria and documents required

A few simple criteria must be met to qualify for our used car loan. You will also need a few documents to complete your application.

Eligibility criteria

Nationality: Indian
Age: 18 to 80 years*
CIBIL Score: 720 or higher
Employment:
For salaried: Individuals should have at least 1 year of experience and a minimum monthly salary of Rs. 20,000
For self-employed: Applicant must submit an ITR proof of the last 2 years

Documents required

  • KYC documents: Aadhaar/ passport/ voter’s ID/ driving license/ letter from NPR/ NREGA job card
  • PAN card
  • Employee ID card
  • Salary slips for the last 2 months
  • Bank account statements for the previous 3 months
  • Vehicle registration certificate and insurance copy

Note:

  • The loan is available only for private cars.
  • The car should not be more than 12 years old, at the end of the tenure.
  • The car should not have more than 2 previous owners.

*Higher age limit is applicable at the time of loan maturity.

How to apply for used car loan

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Step-by-step guide to applying for a used car loan

  • Click on the 'APPLY' button on this page.
  • Enter your 10-digit mobile number and submit the OTP for verification.
  • Fill in your personal details including your full name, mobile number, email ID, and more.
  • Enter details of the car if you have identified the one.
  • Verify or update your KYC details and proceed to schedule an appointment for further verification.

Our representative will call you on the next steps. And the loan amount will be transferred to your bank account upon the verification of your submitted documents.

  • Did you know?

    You can get a used car loan of up to 100% of the car’s value.

  • Did you know?

    You can lower your EMIs by choosing a longer tenure of up to 72 months.

  • Did you know?

    You can get funds within 48 hours* of approval.

  • Did you know?

    With Flexi Hybrid Loan, pay interest-only EMIs for the initial part of the tenure.

Applicable fees and charges

Type of fee

Applicable charges

Rate of interest

10.50% to 22% p.a.

Processing fee

Up to 2.95% of the loan amount (inclusive of applicable taxes).

Documentation charges

Up to Rs. 2,360 (inclusive of applicable taxes).

Flexi fee

Term Loan – Not applicable

Flexi Term Loan (Flexi Dropline) - Up to Rs. 999/- (inclusive of applicable taxes)

Flexi Hybrid Loan (as applicable below)

  • Up to Rs. 1,999/- (inclusive of applicable taxes) for loan amount less than Rs. 2,00,000/-
  • Up to Rs. 3,999/- (inclusive of applicable taxes) for loan amount from Rs. 2,00,000/- to Rs. 3,99,999/-
  • Up to Rs. 5,999/- (inclusive of applicable taxes) for the loan amount from Rs. 4,00,000/- to Rs. 5,99,999/-
  • Up to Rs. 6,999/- (inclusive of applicable taxes) for the loan amount from Rs. 6,00,000/- to Rs. 9,99,999/-
  • Up to Rs. 7,999/- (inclusive of applicable taxes) for the loan amount of Rs. 10,00,000/- and above

The charges above will be deducted upfront from the loan amount

*Loan amount includes approved loan amount, insurance premium, VAS charges, and documentation charges.

Prepayment charges

Full prepayment (foreclosure)

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount payable by the borrower as on the date of such full prepayment.
  • Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
  • Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule, during initial and subsequent tenure, on the date of such full prepayment.

Part-prepayment

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part pre-payment.
  • Not applicable for Flexi variants

Annual maintenance charges

Term Loan: Not applicable

Flexi Term Loan (Flexi Dropline):

  • Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan:

  • Up to 0.59% (inclusive of applicable taxes) of the total withdrawable amount during initial tenure.
  • Up to 0.295% (inclusive of applicable taxes) of total withdrawable Amount during subsequent tenure.

Bounce charges

In case of default of repayment instrument, Rs. 1,500 per bounce will be levied.

Penal charge

 Delay in payment of instalment(s) shall attract penal charge up to Rs. 25 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from the loan amount.

Legal and incidental charges

Actual legal and incidental charges under applicable laws

Repossession charges

Repossession charges at actuals with a maximum capping of Rs. 50,000 (inclusive of applicable taxes)

Auction charges

At actuals

Valuation charges

At actuals

Stockyard charges

Rs. 118 per day for 60 days (inclusive of applicable taxes)

Mandate rejection charges

Rs. 450/- per month from the first month of due date for mandate rejected by customer’s bank until the new mandate is registered.

Loan re-booking charges

Rs. 1,000 (inclusive of applicable taxes).

Loan cancellation charges

Rs. 2,360 (inclusive of applicable taxes) (Interest till cancellation to be borne by the customer).

NOC for interstate transfer

Rs. 1,180 (inclusive of applicable taxes).

NOC to convert from private to commercial

Rs. 3,540 (inclusive of applicable taxes).

Duplicate NOC

Rs. 500 (inclusive of applicable taxes).

Broken period interest/ pre-EMI interest

Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:

Scenario 1 – More than 30 days from the date of loan disbursal till the first EMI is charged:

In this scenario, broken period interest is recovered by the following methods:

  • For Term Loan: Added to the first instalment amount
  • For Flexi Term Loan: Added to the first instalment amount
  • For Flexi Hybrid Loan: Added to the first instalment amount

Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged:

In this scenario, interest is charged only for the actual number of days since the loan was disbursed.

Frequently asked questions

What is a used car loan?

Bajaj Finserv Used Car Loan is a loan provided to purchase your dream car. We offer up to Rs. 77 lakh with a repayment tenure ranging from 12 months to 72 months. Click here to learn how to apply for a used car loan.

How can I get a loan for a second-hand car?

You can get a used car loan from Bajaj Finance at the comfort of your home. Simply click the ‘Apply’ button on this page and submit your application.

What is the maximum amount I can get for a pre-owned car?

You can apply for a Bajaj Finserv Used Car Loan of up to Rs. 77 lakh.

What are the tenure options for a used car loan?

With Bajaj Finserv Used Car Loan you can repay the loan comfortably over tenures ranging from 12 months to 72 months.

Click here to learn how to choose the right tenure for your used car loan.

How do I apply for used car loan?

Simply click on the 'Apply’ button to open the online application form. Once you share your basic details, our representative will contact you and help you with the further process. Submit the required documents to our representative. Once your documents are verified and your loan is approved, you will get the money in your account.

Can I get funding for new cars?

No. You can only get loans for pre-owned cars.

Do I need a guarantor to avail of a used car loan?

You do not need a guarantor to avail of a second-hand car loan. However, if your income does not meet our used car loan eligibility criteria, then you may require a guarantor/ co-applicant. In such a case, you might need a guarantor as a security for your loan.

How do used car loans work?

When you apply for a used car loan, the loan amount is decided based on your eligibility and the value of the second-hand car. Bajaj Finance offers asset-based funding of up to 100% of the car’s value. Click here to learn more about the features and benefits of used car loans.

How much time does it take to process a pre-owned car loan?

When you apply for a pre-owned car loan with Bajaj Finance, you will receive the funds within 48 hours* of approval.

Are there any tax benefits on car loans?

If you are purchasing a car for your personal use, you cannot claim any tax benefit on your second-hand car loan. However, you might get some tax benefits if you are self-employed individual using the car for business purposes.

Do we get the loan amount to cover the 100% cost of my second-hand car?

Bajaj Finance offers asset-based finance of up to 100% of your car’s value. When you choose our used car loan, you can get funds up to Rs. 77 lakh with minimal documents.

What are the benefits of a second-hand car loan?

Second-hand car loans give you access to a high-value loan and help you purchase your dream car easily. Bajaj Finance offers used car loans that come with simple eligibility criteria and minimal documentation. With a Bajaj Finserv Used Car Loan, you can funds get up to Rs. 77 lakh in just 48 hours* of approval.

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