Calculators
Used Car Loan Prepayment Calculator
Interest saved by part-paying your used car loan, and whether charges eat the saving.
Updated 27 September 2026 · 8 lenders trackedFree calculator
Instant results
Reducing-balance maths, Indian formatsAbout this calculator
Part-payments early in the loan save the most interest. On floating-rate loans to individuals there is no prepayment charge; on fixed-rate loans (common at private banks and NBFCs) check the KFS — ICICI Bank charges 2% – 3% in the first two years and Tata Capital 5% – 6%.
Used Car Loan Prepayment Calculator
Prepayment rules
| Situation | Rule |
|---|---|
| Floating-rate loans to individuals (non-business) | No prepayment / foreclosure charge — any lender, part or full, from any source of funds |
| Loans sanctioned or renewed from 1 Jan 2026 | RBI (Pre-payment Charges on Loans) Directions, 2025 also bar charges on floating-rate business loans to individuals and MSEs at most banks and large NBFCs; no minimum lock-in |
| Fixed-rate loans | Lender may charge as per the sanction letter and Key Facts Statement |
| Disclosure | Any charge must be shown in the sanction letter, loan agreement and KFS; waived charges cannot be levied later |
Lender-wise charges
| Lender | Processing fee | Prepayment / foreclosure |
|---|---|---|
| PNB Used Car Loan | 0.25% of loan (min ₹1,000, max ₹1,500) + GST | Floating: nil; fixed: 2% of amount prepaid |
| Indian Bank Pre-owned Car Loan | As per the bank’s service-charge schedule — ask the branch | Individuals: nil; non-individuals: 2% |
| ICICI Bank Pre-owned Car Loan | 2% of loan, max ₹20,000 + GST | Foreclosure 3% + GST within 12 months, 2% + GST in months 13 – 24, nil after 24 months (fixed-rate) |
| Bank of Baroda Pre-owned Car Loan | 0.50% of loan + GST (min ₹2,500, max ₹10,000 + GST) | Floating: nil; fixed: nil up to ₹40,000 within 2 years, 2% + GST above that, nil after 2 years |
| SBI Pre-owned Car Loan | 1.50% of loan + GST (min ₹3,000, max ₹10,000 + GST) | No charge on floating-rate loans to individuals; check the KFS for fixed-rate terms |
| Tata Capital Used Car Loan | Up to 2.95% of loan + GST | Foreclosure / part-prepayment: 6% within 12 months, 5% after 12 months (where charges are permitted) |
| HDFC Bank Used Car Loan | As per sanction — see the KFS (not published on sources checked) | Fixed-rate loans may carry a foreclosure/part-payment charge — check the KFS |
| Sundaram Finance Used Car Loan | About ₹2,500 (aggregator) | Foreclosure not allowed in the first 6 months; penalty as per agreement (aggregator: 3% of principal outstanding) |
Frequently asked questions
Is it worth prepaying with a 5% charge?
Only if the interest saved exceeds the charge plus GST — usually true early in a long loan, rarely in the last year.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.