Vehicle Age Rules for Used Car Finance
Maximum car age and age-plus-tenure caps at each lender, with worked examples.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Every lender limits how old the car can be — either at purchase (PNB: 3 years, Sundaram: 7-year-old models) or at loan maturity (SBI and Tata Capital: 10 years; Bank of Baroda: age + tenure ≤ 96 months). The older the car, the shorter the loan.
Age rules by lender
| Lender | Vehicle age rule | Funding | Max tenure |
|---|---|---|---|
| SBI Pre-owned Car Loan | Car age + loan tenure ≤ 10 years | Up to 85% of valuation | 5 years |
| PNB Used Car Loan | Car not older than 3 years | 75% (25% margin) | 5 years |
| Bank of Baroda Pre-owned Car Loan | Age from original invoice + tenure ≤ 96 months | Lowest of 75% market value, 75% agreement value, 100% IDV | 5 years |
| Indian Bank Pre-owned Car Loan | Not published — ask the branch | 70% – 80% | 6 years |
| ICICI Bank Pre-owned Car Loan | Not published — assessed at valuation | Up to 100% (bank) / 80% (aggregator) | 7 years |
| HDFC Bank Used Car Loan | Not published — assessed at valuation | Based on valuation | 5 years |
| Tata Capital Used Car Loan | Car ≤ 10 years old at loan maturity | Up to 100% | 6 years |
| Sundaram Finance Used Car Loan | Models up to 7 years old | Up to 85% of lower of price and valuation | 4 years |
Example: a 6-year-old car can get at most 4 years at SBI or Tata Capital (10 − 6) and 2 years at Bank of Baroda (96 − 72 months), and is not eligible at PNB. Older cars mean shorter tenures and higher EMIs.
Maximum tenure by car age
| Car age | SBI | PNB | Bank of Baroda | Tata Capital |
|---|---|---|---|---|
| 2 years | 5 yrs | 5 yrs | 5 yrs | 6 yrs |
| 4 years | 5 yrs | Not eligible | 4 yrs | 6 yrs |
| 6 years | 4 yrs | Not eligible | 2 yrs | 4 yrs |
| 8 years | 2 yrs | Not eligible | Not eligible | 2 yrs |
Delhi-NCR caution
In Delhi-NCR, court and NGT orders restrict diesel vehicles older than 10 years and petrol vehicles older than 15 years from plying, and such vehicles can be deregistered. Enforcement and rules have changed several times, so check the current position with the Delhi Transport Department before buying or financing an older car there — a car you cannot drive is poor security and a poor purchase.
Frequently asked questions
How is the car’s age counted?
Usually from the date of first registration or original invoice (Bank of Baroda uses the invoice date).
What if the car is too old for any lender?
Consider a personal loan or a larger down payment, or a newer car.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.