Used Car Loan for First-Time Buyers: How to Get Approved with No Credit History (-1 / NH CIBIL)
Yes, first-time borrowers with no credit history — shown as a '-1' or 'NH' (No History) CIBIL score — can easily get a used car loan in India. Unlike a low CIBIL score caused by defaults, a -1 score simply means you have never taken a loan or credit card before. Banks and NBFCs finance first-time buyers at rates from 11.25% to 16.50% a year using your salary slips or 6-month bank statement (Nxcar partner data, October 2026).
Nxcar Lending Desk Data: In Q3 2026, 22% of all used car loan applicants on Nxcar had a -1 or NH bureau score; salaried first-time buyers achieved an 84% approval rate on their first submission. Looking for general loan rules? Return to our main used car loan pillar page or view used car loan interest rates from all 27 lenders.
Best lenders for first-time used car buyers (-1 / NH CIBIL score)
| Lender | New-to-Credit (-1 / NH) Policy | Indicative Rate for -1 Score | Max LTV | Who Should Pick This Lender |
|---|---|---|---|---|
| HDFC Bank | Approves salaried NTC with corporate/salary account | 11.50% – 13.00% | Up to 85% | Salaried employees receiving pay in an HDFC Bank or major bank account |
| ICICI Bank | Approves salaried NTC with 6+ months job stability | 11.50% – 13.50% | Up to 85% | First-time salaried buyers with Form 16 / PF deduction on payslips |
| IDFC First Bank | Digital cash-flow scorecard for NTC borrowers | 11.99% – 14.00% | Up to 85% | Young professionals (21–28 yrs) with strong digital banking habits |
| Bajaj Finserv | Approves salaried & self-employed NTC with clean ABB | 12.50% – 14.50% | Up to 85% | Fastest digital approval (4–24 hrs) for first-time credit applicants |
| Piramal Finance | Cash-flow underwriting for NTC buyers | 13.00% – 14.50% | Up to 85% | First-time buyers in Tier-1 and Tier-2 cities without a credit card |
| Hero FinCorp | Dedicated New-to-Credit grid | 13.25% – 14.99% | Up to 85% | Salaried or self-employed first-timers buying cars up to 8–10 years old |
| TVS Credit | Published -1 CIBIL cells (IP & NIP) | 15.00% (IP) / 16.50%–17.00% (NIP) | Up to 85% | Transparent published pricing for -1 CIBIL even without income proof |
| Cholamandalam (Chola) | High-acceptance NTC program across India | 13.50% – 15.50% | Up to 85% | First-time buyers in smaller towns or family businesses |
What a -1 (No History) CIBIL score costs on a ₹5 lakh loan (5 years)
| First-Time Buyer Profile | Recommended Lender Tier | Indicative Rate | Monthly EMI | Total Interest (5 yrs) |
|---|---|---|---|---|
| Salaried with PF deduction & salary slips (-1 CIBIL) | HDFC Bank / ICICI Bank | 11.75% | ₹11,059 | ₹1,63,540 |
| Salaried at SME / startup with 6-mo banking (-1 CIBIL) | IDFC First / Bajaj Finserv | 12.75% | ₹11,313 | ₹1,78,780 |
| Self-Employed with ITR or strong ABB (-1 CIBIL) | Piramal Finance / Hero FinCorp | 13.50% | ₹11,505 | ₹1,90,300 |
| Salaried / Self-Employed with Income Proof (-1 CIBIL) | TVS Credit (published -1 IP cell) | 15.00% | ₹11,895 | ₹2,13,700 |
| No Income Proof + -1 CIBIL score | TVS Credit (published -1 NIP cell) | 16.50% | ₹12,292 | ₹2,37,520 |
Quick Used Car Loan EMI Calculator
Adjust loan amount, interest rate, and tenure on reducing-balance math
Estimated Monthly EMI
₹11,505/mo
Why a -1 (No History) CIBIL score is much better than a 650 CIBIL score
Many first-time buyers panic when they check their credit report and see '-1' or 'NH'. In TransUnion CIBIL's scoring system, -1 means you have had zero credit activity in the last 36 months, whereas a score between 300 and 699 indicates past delays or heavy debt usage.
Lenders treat -1 applicants as 'New to Credit' (NTC), not 'Bad Credit'. Provided you have verifiable income (salary slips or 6 months of bank statements), banks like HDFC Bank, ICICI Bank, and IDFC First Bank will finance your used car at 11.50% to 13.50% — whereas those same banks reject a 650 CIBIL score.
Furthermore, a used car loan is one of the best ways to build your credit score from scratch: because it is a secured instalment loan, making 6 to 12 on-time monthly EMIs typically generates a fresh CIBIL score of 740 to 770.
How to get the lowest rate on your very first car loan
Because you do not have a past credit score for an automated scorecard to read, lenders rely on your job stability, banking habits, and car choice. Follow these four steps to secure a 11.50%–13.00% rate instead of 15.00%+.
Apply with your salary-account bank or a cash-flow bank first
If your monthly salary credits into HDFC Bank, ICICI Bank, or Axis Bank, that bank can already see your income stability and spending pattern. Salaried first-time buyers with 6+ months in a corporate job routinely get 11.50%–12.25% even with a -1 CIBIL score.
Show EPFO / PF deduction on your payslip
Provident Fund (PF) deduction on your salary slip is the strongest verification signal for a New-to-Credit salaried applicant. It proves formal employment and unlocks prime bank pricing.
Put down 15% to 20% as margin money
While 90%–100% LTV is reserved for 750+ CIBIL borrowers, contributing 15%–20% down payment on your first car assures the underwriter and waives the need for a guarantor at most lenders.
Include a parent or spouse as co-applicant if you are under 23 or in a cash business
If you are 21–22 years old or newly self-employed without ITR, adding a parent with a home utility bill in their name or an existing CIBIL score bridges the age and stability criteria immediately.
Eligibility Checklist (First-Time Buyers)
- Minimum age of 21 years at application (18–20 accepted only with an earning parent as co-applicant)
- At least 6 months of continuous employment (salaried) or 1–2 years in business (self-employed)
- Minimum monthly net salary of ₹18,000–₹20,000 credited directly to a bank account
- 6 months' bank statement with zero inward/outward return charges
- 15% to 20% down payment ready
Documents Required
- KYC & Address Proof
- PAN card (mandatory) and Aadhaar card / Passport / Voter ID / registered rent agreement.
- Income Proof (Salaried First-Timers)
- Last 3 months' salary slips and Form 16 or appointment letter confirming job tenure.
- Bank Statement
- Last 6 months' salary or business bank account statement (PDF).
- Vehicle Documents
- Registration Certificate (RC), valid motor insurance, and inspection report.
Frequently Asked Questions (First-Time Buyers)
Can I get a used car loan with a -1 or 0 CIBIL score?+
Yes. A -1 or NH (No History) CIBIL score simply means you have never taken a loan or credit card before. Salaried buyers with 3 months' payslips can get a used car loan from HDFC Bank, ICICI Bank, IDFC First Bank, or Bajaj Finserv at 11.50% to 13.50% p.a., while TVS Credit publishes dedicated -1 CIBIL rates of 15.00% (with income proof) and 16.50%–17.00% (without income proof).
What is the minimum age to get a first used car loan in India?+
The minimum age across almost all banks and NBFCs is 21 years at the time of loan application. If you are between 18 and 20 years old, you can apply with an earning parent or spouse (aged 21+) as the primary applicant and yourself as co-applicant.
Do first-time car loan buyers need a guarantor?+
No, a guarantor is not required if you are 21+, have 6+ months of verifiable bank-credited salary or business income, and put down 15%–20% margin money. A co-applicant is only requested if you have less than 6 months on the job, earn in cash, or live in temporary accommodation.
How much will a used car loan improve my CIBIL score as a first-time borrower?+
Once your used car loan is disbursed and you pay your first 6 monthly EMIs on time via NACH auto-debit, TransUnion CIBIL transitions your score from -1 (No History) to an active score — typically between 730 and 765 — making future credit cards and home loans much cheaper.
How much loan can a first-time buyer get on a ₹25,000 monthly salary?+
With a ₹25,000 net monthly salary and zero existing EMIs, lenders allow up to 50% FOIR (₹12,500 maximum monthly EMI). At 12.00% interest over 5 years, a ₹12,500 EMI supports a loan amount of up to ₹5.60 lakh, allowing you to buy a ₹6.50–₹7.00 lakh used car with a 15%–20% down payment.
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