Cholamandalam Used Car Loan — Interest Rates, Eligibility & EMI (October 2026)
Cholamandalam Investment and Finance Company (part of the Murugappa Group) is one of India's largest vehicle-finance NBFCs, operating over 1,300 branches across Tier 2, Tier 3 and semi-urban India. On Nxcar, Cholamandalam's used car loan rate band runs from 16.01% to 19.01% a year.While 16.01% is higher than urban-focused NBFCs like Bajaj Finserv (13.00%) or Poonawalla Fincorp (12.51%), Cholamandalam wins on ground-level underwriting. Its field officers visit your shop, transport business, farm or small enterprise to assess real earning capacity rather than relying solely on automated ITR software.Additionally, for borrowers with a CIBIL score below 700, Cholamandalam's 19.01% ceiling is 0.99 percentage points lower than TVS Credit's 20.00% no-income-proof tier and 2.00 points below IndoStar and Vastu (21.01%).
Comparing multiple banks before applying? Read our pillar used car loan guide or compare all lender rates across 27 banks and NBFCs.
Cholamandalam Used Car Loan Key Facts (October 2026)
| Lender Category | NBFC-UL (Cholamandalam Investment and Finance Company) |
|---|---|
| Interest Rate (p.a., Reducing Balance) | 16.01% to 19.01% |
| EMI per ₹1 Lakh (5-Year Tenure) | ₹2,432 – ₹2,595 |
| Maximum LTV (Funding Share) | Up to 85% of valuation (Check with lender) of assessed vehicle valuation |
| Repayment Tenure Range | 12 to 60 months (1 to 5 years) |
| Max Car Age at Loan Maturity | Up to 12 years at maturity |
| Minimum CIBIL Score Accepted | 620 to 650+ (strong on new-to-credit & rural/semi-urban) |
| Processing Fee & Foreclosure | Processing: Check with lender · Foreclosure: Fixed-rate loan; check Key Facts Statement |
| Typical Sanction & Disbursal Speed | 24 to 48 hours |
Nxcar Lending Desk Note: Highest semi-urban and Tier 3 town coverage among Nxcar's upper-layer NBFCs. (Median sanction time: 32 hrs; average loan size: ₹4,50,000).
what is Cholamandalam's used car loan interest rate by slab?
Below is the October 2026 slab-wise pricing structure for Cholamandalam across loan sizes, CIBIL bands, and income documentation tracks:
| Borrower / Loan Slab | Indicative Interest Rate (p.a.) | Key Underwriting Note |
|---|---|---|
| All loan sizes | 16.01% to 19.01% | 3-point spread |
Cholamandalam Used Car Loan: Honest Pros and Cons
Why Borrowers Choose Chola
- • Massive 1,300+ branch network across semi-urban and Tier 2/3 India
- • Pragmatic field-based income assessment for self-employed traders, contractors and small business owners
- • 19.01% ceiling is lower than IndoStar Capital (21.01%), Vastu Finserve (21.01%) and TVS Credit's 20.00% cap
Matching borrower guide: used car loan for self-employed borrowers →
Limitations & Watch-Outs
- • 16.01% starting floor is expensive if you have a 700+ CIBIL score and formal income documents
- • TVS Credit (15.25%–15.75%) and HDB Financial (15.00%) start lower for 700+ CIBIL profiles
Cholamandalam Used Car Loan EMI Table (₹3L to ₹12L over 5 Years)
Monthly EMIs and 5-year total interest computed on reducing-balance math across Chola's lowest (16.01%), mid (17.51%), and ceiling (19.01%) rates:
| Loan Amount (60 Months) | At Lowest Rate (16.01%) | At Mid Rate (17.51%) | At Ceiling Rate (19.01%) |
|---|---|---|---|
| ₹3,00,000 | ₹7,297/moInterest: ₹1,37,821 | ₹7,538/moInterest: ₹1,52,297 | ₹7,784/moInterest: ₹1,67,029 |
| ₹5,00,000 | ₹12,162/moInterest: ₹2,29,701 | ₹12,564/moInterest: ₹2,53,829 | ₹12,973/moInterest: ₹2,78,382 |
| ₹8,00,000 | ₹19,459/moInterest: ₹3,67,522 | ₹20,102/moInterest: ₹4,06,126 | ₹20,757/moInterest: ₹4,45,411 |
| ₹12,00,000 | ₹29,188/moInterest: ₹5,51,283 | ₹30,153/moInterest: ₹6,09,189 | ₹31,135/moInterest: ₹6,68,116 |
Quick Used Car Loan EMI Calculator
Adjust loan amount, interest rate, and tenure on reducing-balance math
Estimated Monthly EMI
₹12,162/mo
Cholamandalam Pre-Owned Car Loan Eligibility & Documents
Salaried Applicants
₹15,000 a month (Check with lender)
Self-Employed Applicants
Field-assessed business cash flow
| Document Category | Salaried Applicants | Self-Employed Applicants |
|---|---|---|
| Identity Proof (KYC) | PAN card (mandatory) + Aadhaar card, Passport, Voter ID, or Driving Licence | PAN card (personal & firm if applicable) + Aadhaar card, Passport, or Voter ID |
| Address Proof | Aadhaar, utility bill (electricity/water/gas < 60 days), or registered rent agreement | Residence proof + Office/Shop proof (GST certificate, Udyam, Shop Act, utility bill) |
| Income Proof | Last 3 months' salary slips and Form 16 (exempt under No-Income-Proof programs) | Last 2 years' ITR with Computation of Income (or exempted under ABB / NIP banking programs) |
| Bank Statements | Last 6 months' salary bank account statement (PDF or Account Aggregator fetch) | Last 6 to 12 months' primary current and savings bank statements |
| Vehicle Documents | Registration Certificate (RC), valid comprehensive insurance policy, pollution (PUC) certificate, physical inspection & valuation report, and existing loan NOC/foreclosure letter (if the car currently has active finance) | |
Cholamandalam vs Other Used Car Loan Lenders
See how Cholamandalam compares against its three closest peer lenders on rate, LTV, and car-age rules:
| Lender | Interest Rate (p.a.) | Max LTV | Max Car Age | Best For |
|---|---|---|---|---|
| Cholamandalam (This Page) | 16.01% to 19.01% | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | Self-employed and semi-urban borrowers |
| Kogta Financial | 16.01% to 17.01% | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Narrow 1-point band in West & North India |
| SK Finance | 16.01% to 19.01% | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Low CIBIL & informal income in North/West India |
| TVS Credit | 15.25% to 20.00% | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Transparent grid for low CIBIL & self-employed |
| Equitas Small Finance Bank | 13.00% to 15.00% | Up to 80% of valuation (Check with lender) | 12 yrs at maturity | Vintage / older cars over 12 years |
Frequently Asked Questions (Cholamandalam Used Car Loan)
What is Cholamandalam's used car loan interest rate in October 2026?+
Cholamandalam's used car loan interest rate ranges from 16.01% to 19.01% per annum on a monthly reducing-balance basis in October 2026. The exact rate you receive depends on your CIBIL score band, whether you submit income proof (salary slips/ITR) or apply under a banking surrogate, and the age of the car.
How much does Cholamandalam fund for a second-hand car (maximum LTV)?+
Cholamandalam finances Up to 85% of valuation (Check with lender) of the car's independent valuation price, with repayment tenures from 12 to 60 months (5 years).
What is the maximum car age allowed for a Cholamandalam used car loan?+
Cholamandalam requires the car's age plus your chosen loan tenure not to exceed 12 years at loan maturity. For example, a 5-year-old car can be financed for up to 7 years.
What is the minimum CIBIL score required for a Cholamandalam pre-owned car loan?+
Cholamandalam's typical CIBIL requirement is 620 to 650+ (strong on new-to-credit & rural/semi-urban). ₹15,000 a month (Check with lender)
Can I pre-pay or foreclose my Cholamandalam used car loan early?+
Yes. Foreclosure and pre-payment terms at Cholamandalam are governed by your Key Facts Statement (Fixed-rate loan; check Key Facts Statement). Under the RBI Pre-payment Charges Directions 2025 (effective 1 January 2026), floating-rate consumer loans carry zero foreclosure penalty, while fixed-rate car loans typically charge 2% to 5% + GST after the initial lock-in period.
Why do self-employed buyers choose Cholamandalam at 16.01% to 19.01%?+
Cholamandalam's field officers conduct in-person business cash-flow assessments for traders, shopkeepers and small entrepreneurs who may not have two years of high ITR or salary slips required by banks.