Rs. 1 lakh – Rs. 2.50 crore
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In summary
Used Car Ownership Made Easy
If you are considering a used car in Ludhiana, first check whether the monthly repayment works for your budget and whether the selected vehicle meets the financing conditions.
- Borrow from Rs. 1 lakh to Rs. 2.50 crore, with funding of up to 100% of the assessed car value
- Select a tenure from 12 months to 84 months, with interest rates from 10% to 18.25% p.a.
- A CIBIL Score of 650 or higher is required, while vehicle age and previous ownership are also assessed
If the car, upfront contribution, and expected EMI fit your budget, check your pre-approved Bajaj Finance Used Car Loan offer before moving ahead.
Last updated: September 2026
Used car loan in Ludhiana at a glance
Start with these loan parameters before deciding how much you need to finance.
| Feature | Details |
| Loan amount | Rs. 1 lakh to Rs. 2.50 crore |
| Funding | Up to 100% of the car’s assessed value |
| Repayment tenure | 12 months to 84 months |
| Interest rate | 10% to 18.25% p.a. |
| Doorstep assistance | Support with document collection and Registration Certificate (RC) transfer |
Last updated: September 2026
Funding up to 100% does not mean the complete purchase price will always be financed. Your sanctioned amount can depend on your repayment capacity, credit profile, overall eligibility, and the vehicle assessment.
Disbursal takes place after used car loan approval and completion of the applicable checks.
What are the eligibility criteria for a used car loan?
Your age, income, employment profile, and credit record form part of the applicant assessment.
| Criteria | Salaried applicants | Self-employed applicants |
| Nationality | Indian | Indian |
| Age | 21 years to 80 years* | 21 years to 80 years* |
| Credit score | 650 or higher | 650 or higher |
| Income | Minimum Rs. 20,000 per month | ITR for the previous 2 years |
| Experience | 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.
Meeting these criteria allows you to apply but does not guarantee sanction. Bajaj Finance can also assess your existing financial commitments, repayment capacity, income profile, credit history, and supporting records.
→ Quick definition: A Credit Information Bureau (India) Limited (CIBIL) Score is a three-digit number ranging from 300 to 900. It reflects your past credit repayment behaviour and is one of the inputs considered during loan assessment.
Additional read: Other benefits of choosing used car finance
Does your selected vehicle qualify for financing?
Your application can meet the personal eligibility conditions while the selected vehicle may still need to satisfy separate financing requirements.
| Vehicle requirement | Details |
| Vehicle type | Private car |
| Maximum vehicle age | Not more than 12 years at the end of the loan tenure |
| Previous owners | Not more than 2 previous owners |
The age condition applies when the loan ends, not only on the day you buy the car. An older vehicle may therefore qualify for a shorter repayment period.
For the same loan amount and interest rate, a shorter tenure increases the monthly EMI.
Check the RC for the first registration date and previous ownership details. If an earlier lender’s hypothecation remains recorded, confirm the process for clearing it before completing the purchase.
→ Quick definition: Hypothecation is the lender’s legal interest in a financed vehicle until the related loan is fully repaid. It is recorded on the RC.
What will you pay each month?
Your equated monthly instalment (EMI) depends mainly on the principal amount, monthly interest rate, and number of repayment months.
You can calculate EMI using this formula:
EMI = P × R × (1 + R)ᴺ ÷ [(1 + R)ᴺ − 1]
Where:
- P = Principal loan amount
- R = Monthly interest rate, calculated as annual interest rate ÷ 12 ÷ 100
- N = Number of monthly instalments
Approximate total interest can be calculated as:
Total interest = (EMI × N) − Principal loan amount
Here is an illustrative example.
Harpreet, a 39-year-old salaried applicant in Ludhiana, earns Rs. 81,000 per month and has a CIBIL Score of 775.
Assume:
- Loan amount: Rs. 7.60 lakh
- Interest rate: 11.50% p.a.
- Tenure: 60 months
For this example:
- P = Rs. 7,60,000
- R = 11.50 ÷ 12 ÷ 100
- N = 60
Estimated EMI: Rs. 16,714 per month
- Estimated total repayment: Rs. 10,02,863
- Estimated total interest: Rs. 2,42,863
These are illustrative figures. The calculation excludes processing fees, documentation charges, stamp duty, and other applicable costs.
Use the used car loan EMI calculator to compare different loan amounts, rates, and tenures before selecting a repayment plan.
→ Pro tip: A lower EMI can make monthly repayment more comfortable to manage, but do not look at EMI in isolation. A longer tenure generally increases the total interest paid for the same loan amount and rate.
How much do you need to pay as down payment?
Bajaj Finance can fund up to 100% of the assessed value of an eligible car. However, the amount sanctioned may be lower than the price agreed with the seller.
Your own contribution depends on the purchase price, assessed value, sanctioned loan amount, and costs outside the loan.
Example 1: What if the approved loan is lower than the purchase price?
Suppose Simran, a 32-year-old salaried applicant in Ludhiana earning Rs. 69,000 per month with a CIBIL Score of 756, agrees to buy a used car for Rs. 9.20 lakh.
Assume:
- Agreed purchase price: Rs. 9.20 lakh
- Assessed vehicle value: Rs. 8.50 lakh
- Loan sanctioned after assessment: Rs. 6.80 lakh
Simran would need to arrange at least Rs. 2.40 lakh towards the purchase price.
She should also plan separately for applicable fees, insurance, ownership-transfer expenses, servicing, and any immediate repairs that are not covered by the sanctioned amount.
Funding up to 100% applies to the assessed vehicle value and remains subject to sanction. It does not automatically mean that the entire seller-quoted price will be financed.
Example 2: Can a larger upfront contribution lower your EMI?
Yes. A higher upfront contribution reduces the principal used in the EMI calculation.
Suppose Simran is eligible to borrow Rs. 6.80 lakh but contributes another Rs. 50,000 and borrows only Rs. 6.30 lakh.
Assume both options use an interest rate of 11.70% p.a. and a tenure of 60 months.
| Scenario | Total amount paid upfront | Loan amount | Estimated EMI |
| Borrow Rs. 6.80 lakh | Rs. 2.40 lakh | Rs. 6.80 lakh | Rs. 15,023 per month |
| Borrow Rs. 6.30 lakh | Rs. 2.90 lakh | Rs. 6.30 lakh | Rs. 13,919 per month |
By contributing another Rs. 50,000 upfront, Simran reduces the estimated monthly EMI by around Rs. 1,104.
A higher upfront contribution can also reduce total interest because you are borrowing less. However, keep enough savings available for insurance, servicing, repairs, tyres, and emergencies instead of using all your cash simply to lower the EMI.
These are illustrative figures. Your actual upfront requirement, sanctioned loan amount, and EMI depend on applicant eligibility, assessed vehicle value, applicable interest rate, tenure, and charges.
What documents do you need?
Salaried applicants
- KYC (Know Your Customer) documents
- PAN (Permanent Account Number) card
- Employee ID, where applicable
- Salary slips for the previous 2 months
- Bank statements for the previous 3 months
- Vehicle RC (Registration Certificate)
- Vehicle insurance copy
Self-employed applicants
- KYC documents
- PAN card
- ITR proof for the previous 2 years
- Bank statements for the previous 3 months
- Vehicle RC
- Vehicle insurance copy
Additional documents may be requested depending on verification requirements.
What is the interest rate for a used car loan?
Bajaj Finance Used Car Loan interest rates range from 10% to 18.25% p.a.
The rate applicable to your loan can depend on factors such as credit profile, income, repayment capacity, loan amount, tenure, and vehicle details.
Interest is only one part of the borrowing cost. Other applicable costs can include:
- Processing fees
- Documentation charges
- Prepayment or foreclosure charges
- Penal charges for delayed payments
- Other applicable fees and charges
Review the complete used car loan interest rate and charges and fees and charges before accepting an offer.
Your loan agreement contains the terms applicable to your borrowing arrangement.
What should you check before buying the car?
A used car’s asking price does not tell you what it may cost during the first few months of ownership. Check for components that may need repair or replacement soon.
Focus on:
- tyres and wheel alignment: Check the age and condition of all four tyres. Uneven wear can indicate alignment, suspension, or steering issues.
- Engine and cooling: Watch for warning lights, leaks, overheating, unusual exhaust smoke, and abnormal engine noise.
- Clutch or automatic transmission: Check for clutch slip, difficult gear changes, delayed engagement, or rough automatic shifts.
- Braking: Make sure the vehicle stops evenly without pulling, vibration, or unexpected noise.
- Suspension: Listen for knocks and rattles, especially while travelling over uneven surfaces.
- Electrical equipment: Test power windows, central locking, lights, wipers, air-conditioning, infotainment, and dashboard warning functions.
- Service history: Review previous maintenance and identify any major scheduled work that may be due soon.
Also inspect the body and underbody for signs of accident repairs, corrosion, or poorly finished panel work.
If the service records and physical inspection leave important questions unanswered, consider an independent mechanical inspection before making the purchase.
What should you consider in Ludhiana while selecting?
Match the vehicle to the type of driving you expect to do regularly. For frequent urban travel in Ludhiana, check low-speed steering, clutch effort or automatic gearbox response, braking, air-conditioning, and visibility while parking. These can influence everyday comfort more than performance figures.
Ludhiana is well connected by road to Amritsar, Chandigarh, and Jalandhar. If your routine includes frequent journeys on these routes, give additional attention to tyre age, wheel alignment, braking stability, suspension, engine cooling, and service history.
Add fuel, insurance, regular servicing, tyres, parking, and likely repairs to your monthly ownership budget before deciding how much EMI you can comfortably manage.
How do you apply?
Once you have shortlisted the vehicle and estimated your borrowing requirement, you can begin the application process.
- Click on the ‘CHECK ELIGIBILITY’ button to open the application form.
- Enter your mobile number and verify it using a one-time password (OTP).
- Fill in your personal details.
- Provide your employment and income information.
- Enter the selected vehicle details, where applicable.
- Complete KYC and the required verification.
- Submit the application for assessment.
Approval and disbursal remain subject to applicant assessment, vehicle assessment, document verification, and completion of the applicable checks.
A Bajaj Finance representative can assist with the remaining documentation and verification requirements.
After checking the vehicle, upfront amount, and expected monthly repayment, check your eligibility to understand the loan amount available before completing the purchase.
Explore used car loans in other locations
| Used Car Loan in Delhi | Used Car Loan in Mumbai | Used Car Loan in Manipur | Used Car Loan in Nagpur | Used Car Loan in Kanpur |
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.
Frequently asked questions about used car loan in Ludhiana
Overview
On the vehicle
Can my used car’s age affect how much EMI I pay?
Yes. The car must remain within the permitted vehicle-age limit at the end of the loan tenure. An older vehicle may therefore qualify for fewer repayment months. If you borrow the same amount at the same interest rate over a shorter tenure, the EMI increases. Check the first registration date before deciding what repayment period to use in your budget.
How much cash should I keep aside after making a down payment?
There is no single amount that applies to every customer. Your reserve should account for insurance, regular servicing, tyres, unexpected repairs, and personal emergencies. A larger down payment reduces the loan amount and can lower EMI, but using nearly all your savings for the purchase can make subsequent ownership expenses harder to manage.
Does a high CIBIL Score guarantee that I will get the maximum loan amount?
No. A CIBIL Score is one part of the loan assessment. Bajaj Finance can also consider income, existing financial commitments, repayment capacity, vehicle assessment, and other eligibility conditions. The maximum funding percentage should therefore not be treated as an assured sanctioned amount for every applicant.
Why should I check tyre age even when there is tread left?
Tread depth is only one part of tyre condition. tyres can also age, crack, develop sidewall damage, or wear unevenly. Replacing several tyres soon after purchase can increase your immediate ownership cost. Check the manufacturing date, tread, sidewalls, and wear pattern across all four tyres before finalising the car.
Should service history matter more than the odometer reading?
Both matter, but an odometer figure without supporting maintenance records gives an incomplete picture. A higher-kilometre vehicle with regular documented servicing may be easier to evaluate than a lower-kilometre car with missing records. Compare service intervals, replaced components, ownership history, physical condition, and upcoming maintenance before deciding whether the asking price is reasonable.
Disclaimer
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