Second-Hand Car Loan Calculator

In budget-sensitive countries like India, the demand for used and pre-owned cars has been surging alongside with the demand for new cars. With a large demographic of youth transitioning from entry-level jobs to better opportunities, their demand for personal cars has been rising.

While new cars from dealerships are quite expensive, used/pre-owned cars are made affordable especially with Used Car Loans. The use of this tool Second-Hand Car Loan Calculator is now offering the same.

Pre-Owned Car Loan Checklist:


Banks offer loans of 70-85% of the market value of the used car. This is based on the age of the car, the condition, as well as the brand value of the car.

However, some NBFCs may offer 100% financing/down-payment.

Other details that are considered for the valuation of the car are the total KMs driven, condition of parts, area of usage (on-road, off-road, near the sea, in a flood area, etc.), modifications or refurbishment/repairs, accidents, proper paperwork, etc.


The interest is also determined by the aforementioned details as well as the occupational and income status of the borrower.

For instance, if the borrower/buyer receives regular and stable income then the rate of interest will be lower than that of a less financially stable buyer.

However, despite all these perks, the interest rate is 2-3% higher than the new car interest rate.


The number of monthly payments of the loaned amount in addition to the interest levied on it will be decided upon the payment capability of the buyer. The buyer can choose from fixed plans suiting their affordability, or they can select their own flexible EMI plan. The flexible EMI plan will allow the buyer to pay an increased EMI initially or lesser EMI initially.

This will be helpful for those who have irregular income or expect improvement/decline in income soon. Any updates to the selected EMIs can be done with the Second-Hand Car Loan Calculator, with ease.


The amount of EMI a person can afford will determine the tenure of the loan. Most banks/lenders offer a loan for up to 5 years.


While some lenders/banks offer loans from 18+years old, others have restricted anyone younger than 21 years old.

Car age and condition: Most lenders (banks) consider the age of the car and approve loans on cars no older than 10-15 years. The number of KMs the car ran is also considered.

Occupational status is also required, along with tax return filings for the last few months.


Identity Proof: Aadhaar Card, PAN Code, Voter Card, etc.

Address Proof: Aadhaar Card.

Tax returns. Income Tax filings for the last-three/two month is also acquired to verify.

Important Details:

  • The loan amount will not cover the used car’s loans/insurance. Furthermore, any loan amount will also not cover modifications and accessories.
  • Once the borrower stops paying the loan EMIs, the car will be re-PO’ed (repossessed).
  • There can be 2-3% of the Processing Fee for the loan.
  • Sometimes the approval process may take as long as a week.
  • The availability of loans for cars of some special heritage, classic cars, sports cars, need to be figured out beforehand.

How a Second-Hand Car Loan Calculator can help?

  • A car loan calculator will easily calculate the EMI value per month.
  • The calculation is based on the number of market prices of the 2nd-hand vehicle.
  • This can help determine the monthly EMI affordability.
  • The calculator is extremely secure and convenient to use.
  • A pre-plan can be made to determine which EMI plan is best suited for the buyer.
  • It makes it easier to switch from Fixed Loan or Floating Loan, and vice-versa.

Interest Rate for Second-Hand Car Loans for most banks ranges from 12-16% for a tenure of 5-7 years.


By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.