Used Car Loan interest rate and charges

Check the latest interest rate and read about the fees and charges in detail before applying for our used car loan.

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Applicable fees and charges

Type of fee

Applicable charges

Rate of interest

10% to 19% 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 interest

 Delay in payment of monthly instalment shall attract penal interest at the rate of 3.5% per month on the monthly instalment outstanding, from the respective due date until the receipt of monthly instalment.

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

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

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.

Factors affecting used car loan interest rates

Multiple factors can affect your used car loan interest rate. Here is the list of factors that play a crucial role in determining your interest rates.

CIBIL Score: One of the most important factors that affect your interest rate is your credit score. A high CIBIL Score indicates a good credit history and helps you secure a lower interest rate.

Debt-to-income ratio: Your debt-to-income ratio determines your loan repayment capacity. A lower debt-to-income ratio reduces the risk of default as you will have enough funds to pay your EMIs on time.

Income: Higher monthly income allows you to avail of a used car loan at a lower interest rate. This is because your lender is assured of timely EMI payment.

Occupation: Your used car loan interest rates also depend on your employment type. Depending on your profession - salaried or self-employed, your interest rate might differ.

Relationship with the lender: If you have a good track record with a lender, you might get a better interest rate on used car loans.

How to apply for used car loan

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

  1. Click on the 'APPLY' button on this page.
  2. Enter if you have identified a car.
  3. Fill in the application form with car details, such as make, model, variant and colour. 
  4. Enter your personal details including your full name, mobile number, email ID, and more.
  5. Once you enter all your details, please click on ‘SUBMIT' to complete your application.

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.

Frequently asked questions

What is the processing fee for used car loan?

The processing fee for a Bajaj Finserv Used Car Loan can go up to 2.95% of the loan amount. This is inclusive of applicable taxes.

Is there a charge applicable on part-prepayments?

There is a fee up to 4.72% (inclusive of applicable taxes) on the part-payment amount paid. However, if you opt for a Flexi Loan, you can part-prepay as per your convenience without an additional charge.

What does bounce charge mean?

Bounce charge is the fee that is charged when an EMI payment is not made on time or cannot be completed due to insufficient balance.

We charge Rs. 1,500 per bounce for every EMI missed. Any delay in payment of monthly instalment/ EMI shall attract penal interest at the rate of 3.5% per month on the monthly instalment/ EMI outstanding, from the date of default until the receipt of the monthly instalment/ EMI.

What is the interest rate for used car loan?

Bajaj Finserv Used Car Loan offers a competitive interest rate from 10% to 19% p.a.

What is current rate of interest for used car loan?

Bajaj Finance offers used car loans at an interest rate starting at 10% p.a.

How to reduce used car loan interest rate?

The interest rate for a used car loan is determined by the lender basis your credit profile and CIBIL Score. While you cannot reduce the interest rate, you can take measures to ensure that you get the lowest possible interest rate. To get the best interest rate from Bajaj Finance you need to meet our basic eligibility criteria like a minimum CIBIL Score of 720 or higher. Alternatively, you can also choose a shorter tenure to save on the interest amount you pay.

How to calculate used car loan interest rate?

There are multiple factors that affect your used car interest rate. One such important factor is your credit score. If you have a good CIBIL Score, you can get a loan at a competitive interest rate. You can also save on interest by opting for a shorter tenure. You can also use our used car loan EMI calculator to determine your monthly EMIs.

Will there be any foreclosure charges?

If you have surplus funds, you can foreclose your loan in advance and become debt-free early. However, when you are foreclosing your ongoing used car loan, you have to pay additional foreclosure charges.

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