Sundaram Finance Used Car Loan 2026
Chennai-based NBFC Sundaram Finance funds used cars up to seven years old, with up to 85% funding and short, simple tenures. Interest rate 12.50% onwards, loan Up to 85% of purchase price or valuation, whichever is lower, tenure Up to 4 years (48 months).
Rates as of Sep 2026 · Checked 27 September 2026Sundaram Finance Used Car Loan at a glance
- 85% funding
- Flexible on borrower profiles
- Flat-ish low fee
- Highest starting rate we track (12.50%)
- Shortest tenure (4 years)
- 6-month lock-in on foreclosure
Sundaram Finance used car loan interest rate & charges
| Feature | Sundaram Finance |
|---|---|
| Interest rate | 12.50% onwards |
| Rate details | Starts from 12.50% (official); aggregators list 12.00% – 14.00%. |
| Processing fee | About ₹2,500 (aggregator) |
| Loan amount | Up to 85% of purchase price or valuation, whichever is lower |
| Tenure | Up to 4 years (48 months) |
| Prepayment / foreclosure | Foreclosure not allowed in the first 6 months; penalty as per agreement (aggregator: 3% of principal outstanding) |
| Vehicle age | Finances models up to 7 years old |
| Network | Strong presence in South India and smaller towns |
Special schemes & features
NBFC underwriting often suits buyers banks turn down
Source: sundaramfinance.in, 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 Sundaram Finance’s rates
| Loan amount | EMI @ 12.50% |
|---|---|
| ₹3,00,000 | ₹7,974 |
| ₹5,00,000 | ₹13,290 |
| ₹8,00,000 | ₹21,264 |
Tenure 4 years, reducing-balance method. Total interest on ₹5,00,000 at 12.50%: ₹1,37,920.
Sundaram Finance used car loan EMI calculator
Eligibility
- Indian resident — salaried, self-employed, professional or farmer (minimum and maximum ages vary by lender)
- Minimum income: about ₹2.5 lakh – ₹3 lakh a year, or ₹20,000 – ₹25,000 a month, depending on lender
- A good credit score — pricing at SBI and Bank of Baroda is linked to it
- The car must pass the lender’s valuation and vehicle-age limit (age + tenure caps such as 8 or 10 years)
- Private (non-commercial) registration with clear title and no unresolved hypothecation
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 Sundaram Finance Used 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.
Sundaram Finance 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 Sundaram Finance Used Car Loan used car loan interest rate?
Sundaram Finance used car loan rates start at 12.50% p.a. (as of Sep 2026). The rate you get depends on your credit score, income and loan details.
What is the EMI for ₹5,00,000 from Sundaram Finance?
At 12.50% for 4 years the EMI is about ₹13,290, with total interest of ₹1,37,920.
What is the processing fee?
Sundaram Finance: About ₹2,500 (aggregator). GST at 18% applies on fees.
What is the maximum tenure?
Sundaram Finance: Up to 4 years (48 months).
Can I prepay or foreclose the loan?
Sundaram Finance: Foreclosure not allowed in the first 6 months; penalty as per agreement (aggregator: 3% of principal outstanding).
Information compiled from the lender’s published rates and reputable aggregators for comparison only. FinancePortal is not affiliated with Sundaram Finance Used Car Loan. Terms change — confirm with the lender.