Used Car Loan Down Payment
How much you must pay upfront — lender margin plus any gap between price and valuation.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Your down payment has two parts: the lender’s margin (15% – 30% of value at most banks) and any amount by which the agreed price exceeds the lender’s valuation. A bigger down payment cuts EMI, interest and the risk of owing more than the car is worth.
Down payment by lender rule
| Lender funding rule | Funding % | Loan (on ₹5.5 lakh valuation) | You pay upfront |
|---|---|---|---|
| PNB / Bank of Baroda | 75% | ₹4,12,500 | ₹1,87,500 |
| Indian Bank (upper) | 80% | ₹4,40,000 | ₹1,60,000 |
| SBI / Sundaram Finance | 85% | ₹4,67,500 | ₹1,32,500 |
Seller asks ₹6,00,000; lender’s valuer values the car at ₹5,50,000. Funding is applied to the lower figure, so you pay the ₹50,000 gap plus the lender’s margin. Bank of Baroda also caps the loan at 100% of the insurance IDV.
Typical margin
| Lender | Margin |
|---|---|
| SBI | 15% (85% funding) |
| Sundaram Finance | 15% (85% funding) |
| Indian Bank | 20% – 30% |
| PNB | 25% |
| Bank of Baroda | 25% (or more if IDV is lower) |
| ICICI Bank / Tata Capital | Can be nil for strong profiles (up to 100% funding) |
Down payment calculator
Frequently asked questions
Is zero down payment a good idea on a used car?
It raises EMI and interest, and the loan may exceed the car’s resale value for the first years. A 20% – 25% down payment is safer.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.