Used Car Loan

It takes 1 day to sanction the loan and further 2 days to process the payment after all the relevant documents have been provided.

You can get loan up to 100% of the valuation of your desired pre-owned car basis your credit score and Bank's internal assessment criteria.

You can get loan of up to 200% of the valuation of your pre-owned car basis your credit score and Bank's internal assessment criteria.

1. Re-purchase:
   
   
   • • Rate of Interest: Starting as low as 9.50%* per annum
   • • Tenure: up to 7 years
   • • Loan Amount: From ₹1 Lakh up to ₹2 Cr
   • • Funding: Up to 100% of the valuation of the car


2. Re-finance/Loan against Car:
   
   
   • • Rate of Interest: Starting as low as 10.0%* per annum
     
   • • Tenure: Up to 5 years
   • • Loan Amount: From ₹1 Lakh up to ₹50 lakhs
   • • Funding: Up to 200% of the valuation of the car

The maximum amount you can avail is ₹2 Cr and maximum tenure can be up to 7 years basis your credit score and Bank's internal policies

You can click here to apply online or apply through mobile app of IDFC FIRST Bank or give us a missed call at 1800 10 888 and our representative will get in touch with you.

Our range of car loan products is designed keeping your needs and preferences in mind, offering a seamless and efficient financing experience. Here's why choosing IDFC FIRST Bank for your pre-owned car purchase is a wise decision:

Repurchase Loans

• • 100% Loan-to-Value Ratio: Enjoy the flexibility of financing the entire value of your chosen pre-owned car
• • Same Day Disbursal (Up to Rs.15,00,000): Swift and hassle-free loan processing ensures you can drive away with your dream car on the same day
• • Attractive Rate of Interest at 9.50%: Benefit from competitive interest rates, making your car ownership journey affordable
• • Wide Range of Certified Cars: Choose from a diverse selection of certified and verified cars available through our trusted partner dealerships across India
• • Flexible loan terms: Tenure of up to 7 years, offering extended flexibility for budget-friendly repayments on your used car purchase

Refinance Loans

• • Up to 200% Financing of Car Value: Obtain the financial support you need by refinancing up to 200% of your existing car's value
• • Same Day Disbursal (Up to Rs.15,00,000): Experience quick and seamless loan disbursal, allowing you to address your financial requirements promptly
• • Attractive Rate of Interest at 10.0%: Our refinance loans come with competitive interest rates, ensuring a cost-effective solution for your financial needs
• • Flexible tenure: Tenures of up to 5 years, ensuring a seamless and manageable repayment plan for your refinanced car loan
   

Choosing IDFC FIRST Bank for your pre-owned car financing needs means partnering with a trusted ally committed to simplifying your car ownership journey. With a focus on transparency, quick processing, and attractive interest rates, we stand out as the preferred choice for savvy car buyers.

Applying for a car loan with IDFC FIRST Bank is designed to be a hassle-free and secure experience. Follow these steps, and you'll be on your way to owning your dream car in no time. If you have any additional questions or need further assistance, our team is ready to help—simply reach out to us for personalized support.

Considering a pre-owned car loan with IDFC FIRST Bank? Here's a breakdown of the eligibility criteria and documents you'll need:

Eligibility Criteria

• • Indian Citizenship: Applicants must be Indian citizens.
• • Age Requirement: You should be at least 21 years old.

Income Criteria

• • Salaried Individuals: A minimum monthly income of Rs. 25,000 is required.
• • Self-Employed Individuals: An annual income of Rs. 1,50,000 or more is necessary.

Vehicle and Ownership Documents

• • Driving License and Vehicle Registration: When it comes to vehicle documents, you need a valid driving license and the registration certificate of the vehicle you're purchasing or using as collateral.

Identity Proof

• • You can choose from the multiple identify proof options and provide either your PAN card, Aadhaar card, passport, or voter ID.

Address Proof

• • You can choose from multiple address proof options and submit either a bank statement, electricity bill, telephone bill, or rent agreement as your address proof.

Income Proof

• • Choose from the diverse income proof options and furnish a salary slip, income tax return, or bank statement as proof of income.

Applying for IDFC FIRST Bank Pre-Owned Car Loans – A Seamless Process

Meet these eligibility criteria and gather the required documents for a smooth and efficient pre-owned car loan application with IDFC FIRST Bank.

A used car loan or pre-owned car loan is designed for purchasing a second-hand vehicle. Do note that this differs from a loan against car, which is when the loan is availed on an existing car owned by the applicant to avail funds for financial needs. It A pre-owned car loan allows you to finance the purchase of a used car by providing you with a lump sum amount, which is repaid over a specified period along with interest. 2^nd hand car loans typically have different terms and conditions compared to new car loans, however, it provides flexibility and convenience for purchasing a pre-owned vehicle instead of a brand new one.

IDFC FIRST Bank offers lenient criteria for salaried, self-employed, HUF, and businessowners who are eligible to apply for a used car loan. Here are the basic eligibility requirements for pre-owned car loans for 2^nd hand cars.

For self-employed individuals:

• • Resident Indians only
• • Aged between 21-70 years
• • Minimum 2 years of business continuity
• • Must earn minimum ₹1.5 lakh per annum

For salaried individuals:

• • Resident & non-resident Indians
• • Aged between 21-60 years
• • Minimum 1 years of experience
• • Must earn minimum ₹1.8 lakh per annum
• • HUF/Proprietorship/Partnership/Pvt. Ltd.
• • Minimum income of Rs. 1,50,000

According to market norms, usually 80% to 90% of the vehicle’s market value is sanctioned. However, with IDFC FIRST Bank, you can obtain a loan 100% of the car’s LTV, making it convenient for you to buy a used car of your preference without an upfront cost. LTV stands for Loan-to Value-Ratio which is typically the ratio of the used car loan to the market value of the vehicle.

Second hand car loans from IDFC FIRST Bank come with flexible tenures ranging up to 84 months for a convenient and burden-free loan repayment. You can opt for a suitable loan tenure based on your financial planning and repayment capacity. 

Used car loan interest rates can vary depending on several factors such as your credit score, loan amount, and repayment tenure. IDFC FIRST Bank offers one of the lowest interest rates on pre-owned car loans starting at just 9.50% per annum. Lower rates ensures that your overall loan cost remains low and affordable while purchasing a pre-owned car.

A used car loan is specifically designed to finance the purchase of pre-owned vehicles. Since used cars have already depreciated in value, the principal loan amount is lower compared to a new car loan, but the pre-owned car loan interest rate is usually higher to mitigate the risk associated with older vehicles.

On the other hand, a new car loan is tailored for financing the purchase of brand-new vehicles. Typically, new car loans offer lower interest rates since new cars have a higher resale value and are perceived as less risky. Moreover, you may get longer repayment terms for new car loans, allowing you to spread out the payments over an extended period.

With pre-owned car loans from IDFC FIRST Bank, you get several options to pay your EMIs such as online transfers through net banking, debit card, and UPI. As a bank account holder, you can also use the auto debit (through NACH/e-NACH) facility which automatically debits the monthly EMIs against your pre-owned loan on a set date. Note that part payments are not allowed on pre-owned car loans.

Tax benefits on a pre-owned car loan are not available to the general public, salaried employees, or unemployed individuals. However, business owners can claim tax benefits on interest payments if the purchased vehicle is used for business purposes. 

IDFC FIRST Bank offers extended tenures on pre-owned car loans for easy repayments. You get flexible loan tenures ranging from 12 months to 84 months and can choose the most suitable terms based on your requirements.

Interest rates on pre-owned car loans depend on several factors such as:

1. Debt-to-income ratio – The debt-to-income ratio compares a borrower's monthly debt payments to their gross monthly income. Banks use this ratio to assess a borrower's ability to manage monthly payments and determine their risk level. A lower DTI ratio indicates that a borrower has fewer existing financial obligations relative to their income, making them less risky to banks. Consequently, borrowers with lower DTIs may qualify for lower interest rates on loans because they are perceived as more likely to make timely payments.
   
   
2. Credit score & history – The credit history and score reflect a borrower's past financial behaviour, including their repayment history, credit utilisation, length of credit history, and types of credit accounts. Borrowers with excellent credit scores and a positive credit history are considered to be a lower risk by banks and typically qualify for lower interest rates. Conversely, borrowers with poor credit may face higher interest rates or struggle to secure a loan due to the higher perceived risk of default.
   
   
3. Income slab/bracket – The income slab or bracket refers to a borrower's annual income range. We use this information to gauge a borrower's ability to repay the loan and assess their financial stability.
   
   
4. Vehicle age & model –
   • • Certain makes and models hold their value better than others, which can affect the interest rate. Popular models with good reliability and resale value may qualify for lower interest rates because they are seen as less risky investments for banks.
   • • The age of the vehicle also plays a crucial role. Generally, newer used cars may qualify for lower interest rates compared to older ones. This is because newer vehicles have less wear and tear, are less likely to require costly repairs, and often come with manufacturer warranties, reducing the bank's risk.
      
5. Tenure of the loan – Shorter loan tenures often come with lower interest rates because they pose less risk to banks and result in less total interest paid over the life of the loan. In contrast, longer loan tenures may have higher interest rates to compensate for the increased risk of default and the extended period over which the bank's funds are tied up.

A processing fee is the one-time cost that the bank imposes to cover the administrative charges related to the loan processing. IDFC FIRST Bank offers one of the lowest processing fees on used car loans starting at just 1% of the principle borrowed amount or Rs. 5000, whichever is higher.

Part prepayments are not allowed on pre-owned car loans from IDFC FIRST Bank. However, you can foreclose your loan by paying a foreclosure charge as applicable.

You can reduce your financial liabilities anytime by foreclosing your pre-owned loan before the maturity date. To foreclose your pre-owned car loan from IDFC FIRST Bank, you need to pay a charge of 5% of the outstanding loan amount along with the applicable GST charges.

A guarantor is not required to apply for a used car loan with IDFC FIRST Bank. However, in case an applicant doesn’t meet the specific loan eligibility requirements, the bank may need a co-applicant to approve the loan amount.

Part prepayments are not allowed on used car loans. However, you can foreclose your loan anytime by paying the outstanding amount in full. To close the loan before maturity, you need to pay a foreclosure charge of 5% of the outstanding amount along with the GST.

Used car loans from IDFC FIRST Bank are collateral-free, meaning you don’t require to provide any security when applying for a second-hand car loan.

The bank offers different methods to repay your loan with the easiest one being the payment through automated EMIs. You can automate your EMI payments using the NACH, eNACH, and e-mandate option that can be opted during the loan application. Additionally, you can also use your net banking or debit card to repay your 2^nd hand car loan.