Indian Bank Pre-owned Car Loan 2026
Indian Bank offers repo-linked pre-owned car loans with tenures up to six years and no prepayment charge for individuals. Interest rate 9.55% – 11.65%, loan 70% – 80% of value; up to ₹3 crore, tenure Up to 6 years (72 months).
Rates as of 10 Sep 2026 · Checked 27 September 2026Indian Bank Pre-owned Car Loan at a glance
- Second-lowest starting rate (9.55%)
- No prepayment charge for individuals
- 6-year tenure
- 20% – 30% margin
- Processing fee not listed online
Indian Bank used car loan interest rate & charges
| Feature | Indian Bank |
|---|---|
| Interest rate | 9.55% – 11.65% |
| Rate details | Floating, linked to the bank’s repo-based lending rate (RBLR); 9.55% – 11.65% as of 10 Sep 2026. |
| Processing fee | As per the bank’s service-charge schedule — ask the branch |
| Loan amount | 70% – 80% of value; up to ₹3 crore |
| Tenure | Up to 6 years (72 months) |
| Prepayment / foreclosure | Individuals: nil; non-individuals: 2% |
| Margin | 20% – 30% |
| Minimum income | ₹20,000/month (salaried, pensioners); ₹3 lakh p.a. (self-employed) |
Special schemes & features
Pensioners eligible with ₹20,000 monthly income
Source: indianbank.bank.in, 10 Sep 2026. Rates are indicative; your rate depends on your profile. Always check the Key Facts Statement (KFS) for the APR before signing.
EMI at Indian Bank’s rates
| Loan amount | EMI @ 9.55% | EMI @ 10.60% | EMI @ 11.65% |
|---|---|---|---|
| ₹3,00,000 | ₹7,544 | ₹7,696 | ₹7,849 |
| ₹5,00,000 | ₹12,574 | ₹12,826 | ₹13,081 |
| ₹8,00,000 | ₹20,118 | ₹20,521 | ₹20,930 |
Tenure 4 years, reducing-balance method. Total interest on ₹5,00,000 at 9.55%: ₹1,03,528.
Indian Bank used car loan EMI calculator
Eligibility
- Salaried and pensioners: ₹20,000 monthly income
- Self-employed: ₹3 lakh annual income
- Individuals and non-individuals (firms, companies) — prepayment terms differ
Documents required
- KYC: PAN and Aadhaar / passport / voter ID / driving licence
- Income proof: last 3 salary slips and Form 16, or 2 years’ ITR with financials for self-employed
- Bank statements (usually last 6 months)
- Copy of the car’s RC, valid insurance and PUC
- Sale agreement or dealer invoice / proforma
- Seller’s KYC and signed Form 29 and Form 30 for RC transfer
- If the car had a loan: previous financier’s NOC and Form 35
- Valuation / inspection report (arranged by the lender)
How to apply for Indian Bank Pre-owned Car Loan
- Check eligibilityKnow your credit score and how much EMI your income supports; get a pre-approval if your bank offers one.
- Shortlist and check the carVerify RC, pending finance, challans, service and accident history; get an inspection.
- ValuationThe lender’s empanelled valuer inspects the car; funding is a % of this valuation, not the asking price.
- Sanction and KFSCompare the Key Facts Statement (APR, fees, foreclosure terms) — it stays valid for at least 3 working days.
- PaperworkSign the loan agreement, Form 34 (hypothecation) and RC transfer forms; pay your down payment.
- Disbursal and RC updateThe lender usually pays the seller or dealer; the RC is transferred to you with the new lender’s hypothecation noted.
Indian Bank vs other lenders
| Lender | Rate | Processing fee | Tenure | EMI on ₹5,00,000 |
|---|---|---|---|---|
| PNB Used Car Loan | 9.45% – 10.55% | 0.25% of loan (min ₹1,000, max ₹1,500) + GST | Up to 5 years (60 EMIs) | ₹12,550 |
| Indian Bank Pre-owned Car Loan | 9.55% – 11.65% | As per the bank’s service-charge schedule — ask the branch | Up to 6 years (72 months) | ₹12,574 |
| ICICI Bank Pre-owned Car Loan | 9.75% onwards | 2% of loan, max ₹20,000 + GST | Up to 7 years | ₹12,621 |
| Bank of Baroda Pre-owned Car Loan | 10.20% – 12.95% | 0.50% of loan + GST (min ₹2,500, max ₹10,000 + GST) | Up to 5 years (car age from invoice + tenure ≤ 96 months) | ₹12,729 |
| SBI Pre-owned Car Loan | 10.45% – 15.60% | 1.50% of loan + GST (min ₹3,000, max ₹10,000 + GST) | Up to 5 years (car age + tenure ≤ 10 years) | ₹12,790 |
| Tata Capital Used Car Loan | 10.49% onwards | Up to 2.95% of loan + GST | 12 – 72 months | ₹12,799 |
| HDFC Bank Used Car Loan | 11.25% onwards | As per sanction — see the KFS (not published on sources checked) | 12 – 60 months | ₹12,984 |
| Sundaram Finance Used Car Loan | 12.50% onwards | About ₹2,500 (aggregator) | Up to 4 years (48 months) | ₹13,290 |
Frequently asked questions
What is the Indian Bank Pre-owned Car Loan used car loan interest rate?
Indian Bank used car loan rates start at 9.55% and go up to 11.65% p.a. (as of 10 Sep 2026). The rate you get depends on your credit score, income and loan details.
What is the EMI for ₹5,00,000 from Indian Bank?
At 9.55% for 4 years the EMI is about ₹12,574, with total interest of ₹1,03,528.
What is the processing fee?
Indian Bank: As per the bank’s service-charge schedule — ask the branch. GST at 18% applies on fees.
What is the maximum tenure?
Indian Bank: Up to 6 years (72 months).
Can I prepay or foreclose the loan?
Indian Bank: Individuals: nil; non-individuals: 2%.
Information compiled from the lender’s published rates and reputable aggregators for comparison only. FinancePortal is not affiliated with Indian Bank Pre-owned Car Loan. Terms change — confirm with the lender.