Rates & lenders
Used Car Loan Processing Fees & Charges
Processing, valuation, foreclosure and other charges at banks and NBFCs.
Updated 27 September 2026 · 8 lenders trackedLowest used car loan rate
9.45%
PNB Used Car LoanWhat you need to know
Processing fees range from ₹1,000 – ₹1,500 at PNB to 2% at ICICI Bank and up to 2.95% at Tata Capital. Foreclosure charges vary even more. All fees must appear in the Key Facts Statement and be included in the APR.
Lender-wise fees & prepayment
| 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) |
Other charges to ask about
| Charge | What it is |
|---|---|
| Valuation / inspection | Some lenders charge for the valuer’s visit |
| Documentation / stamp duty | Loan agreement stamp duty per state law |
| RTO charges | RC transfer and hypothecation fees — paid to the state |
| Penal charges | On late EMIs — RBI requires these to be “penal charges”, not added interest |
| Cheque / NACH bounce | Fixed charge per bounce |
| GST | 18% on fees and charges |
Your protections
| Protection | What it means for you |
|---|---|
| Key Facts Statement (KFS) | Mandatory for all retail and MSME term loans since 1 Oct 2024; shows the all-inclusive Annual Percentage Rate (APR), EMI schedule and every fee |
| Charges not in KFS | Cannot be levied without your explicit consent |
| Validity | At least 3 working days for loans of 7 days or more — time to compare offers |
| Floating-rate reset (RBI, Aug 2023) | At a rate reset you can choose a higher EMI, a longer tenure (without negative amortisation), switch to fixed rate, or prepay; you get quarterly statements |
Frequently asked questions
Is the processing fee refundable if the loan is rejected?
Usually not once processing has started; ask before paying.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.