Used Car Loan Interest Rates October 2026: All 27 Banks and NBFCs Compared
Used car loan interest rates in India range from 10.00% to 21.01% per annum in October 2026 across the 27 banks, Small Finance Banks (SFBs), and NBFCs in Nxcar's lending network. Axis Bank offers the lowest starting rate at 10.00% p.a. (for loans of ₹10 lakh and above), followed by ICICI Bank and IDFC First Bank at 10.75% p.a. For a full overview of how pre-owned auto financing works, see our complete used car loan guide.
October 2026 in four numbers
Lowest Starting Rate
10.00% p.a.
Axis Bank (loans ≥ ₹10L, 750+ CIBIL)
Market Median Starting Rate
13.00% p.a.
Median floor rate across 24 priced lenders
Bank & SFB Average Floor
11.50% p.a.
Requires 700–750+ CIBIL & standard KYC
NBFC Average Floor
14.56% p.a.
3.06 pts (~₹47,000 on ₹5L/5yr) above banks
Visual Rate Range: 24 Priced Lenders (10.00% to 21.01% p.a.)
Sorted from lowest starting rate to highest ceiling rate (AU SFB, Mahindra Finance & ITI Finance rates TBC)
Used Car Loan Interest Rate All Banks & NBFCs (October 2026 Table)
Click any lender name to view its full eligibility grid, slab-wise rates, pros and cons, and head-to-head comparisons.
| Lender Name | Type | Interest Rate (p.a.) | EMI / ₹1 Lakh (5 yrs) | Max LTV | Max Car Age | Best For / Specialisation |
|---|---|---|---|---|---|---|
| Axis Bank | Private bank | 10.00% to 14.55% | ₹2,125 – ₹2,355 | Up to 85% to 90% of valuation (Check with lender) | 10 yrs at maturity | Larger loans; rate drops as loan size rises |
| ICICI Bank | Private bank | 10.00% to 14.50% | ₹2,125 – ₹2,353 | Up to 85% to 90% of valuation (Check with lender) | 10 yrs at maturity | Premium cars and large loans |
| Saraswat Bank | Co-operative bank | 10.01% to 14.01% | ₹2,125 – ₹2,327 | Up to 80% to 85% of valuation (Check with lender) | 10 yrs at maturity | Low rates with income proof (limited geography) |
| HDFC Bank | Private bank | 10.76% to 12.01% | ₹2,162 – ₹2,225 | Up to 85% to 90% of valuation (Check with lender) | 10 yrs at maturity | Narrowest rate band; strong-CIBIL borrowers |
| Hero FinCorp | NBFC | 12.00% to 19.25% | ₹2,224 – ₹2,608 | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | Tiered pricing by customer profile |
| Kotak Mahindra Bank | Private bank | 12.00% to 16.75% | ₹2,224 – ₹2,472 | Up to 80% to 90% with income proof; lower LTV on no-income-proof | 15 yrs at maturity | No-income-proof and older-car options |
| Jana Small Finance Bank | Small finance bank | 12.25% to 17.50% | ₹2,237 – ₹2,512 | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Smaller loans, wider eligibility |
| IDFC First Bank | Private bank | 12.51% to 14.51% | ₹2,250 – ₹2,353 | Up to 85% to 90% of valuation (Check with lender) | 10 yrs at maturity | Lower rate on loans above ₹20 lakh |
| Poonawalla Fincorp | NBFC | 12.51% to 15.01% | ₹2,250 – ₹2,380 | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | Mid-range rates from an NBFC |
| Bajaj Finserv | NBFC | 13.00% to 16.00% | ₹2,275 – ₹2,432 | Up to 85% to 90% of valuation (Check with lender) | 12 yrs at maturity | Fast digital process |
| Equitas Small Finance Bank | Small finance bank | 13.00% to 15.00% | ₹2,275 – ₹2,379 | Up to 80% of valuation (Check with lender) | 12 yrs at maturity | Vintage / older cars over 12 years |
| RBL Bank | Private bank | From 13.00% | From ₹2,275 | Up to 85% of valuation (Check with lender) | 10 yrs at maturity | Private bank option starting at 13.00% |
| Loans24 (Cars24) | NBFC | 13.01% to 15.01% | ₹2,276 – ₹2,380 | Up to 85% to 90% of valuation (Check with lender) | 12 yrs at maturity | Loans up to ₹10 lakh with digital flow |
| Toyota Financial Services | NBFC | 13.51% to 16.51% | ₹2,301 – ₹2,459 | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | Toyota and high-resale used cars |
| Tata Capital | NBFC | 13.75% to 15.75% | ₹2,314 – ₹2,419 | Up to 85% to 90% of valuation (Check with lender) | 12 yrs at maturity | 13.75% Velocity rate for CIBIL 740+ |
| Piramal Finance | NBFC | 14.50% to 16.50% | ₹2,353 – ₹2,458 | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | Self-employed & salaried in Tier 2/3 cities |
| Muthoot Finance | NBFC | 14.75% to 18.75% | ₹2,366 – ₹2,580 | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Broad eligibility, lower CIBIL & semi-urban buyers |
| HDB Financial Services | NBFC | 15.00% to 17.51% | ₹2,379 – ₹2,513 | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | HDFC Bank subsidiary for non-prime profiles |
| IndoStar Capital | NBFC | 15.01% to 21.01% | ₹2,380 – ₹2,706 | Up to 80% of valuation (Check with lender) | 12 yrs at maturity | Older cars, commercial-adjacent & sub-700 CIBIL |
| TVS Credit | NBFC | 15.25% to 20.00% | ₹2,392 – ₹2,649 | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Transparent grid for low CIBIL & self-employed |
| Cholamandalam | NBFC | 16.01% to 19.01% | ₹2,432 – ₹2,595 | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | Self-employed and semi-urban borrowers |
| Kogta Financial | NBFC | 16.01% to 17.01% | ₹2,432 – ₹2,486 | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Narrow 1-point band in West & North India |
| SK Finance | NBFC | 16.01% to 19.01% | ₹2,432 – ₹2,595 | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Low CIBIL & informal income in North/West India |
| Vastu Finserve | NBFC | 18.01% to 21.01% | ₹2,540 – ₹2,706 | Up to 75% to 80% of valuation (Check with lender) | 12 yrs at maturity | Informal income & low CIBIL fallback |
| AU Small Finance Bank | Small finance bank | Rate on request | Check with lender | Check with lender | 12 yrs at maturity | Vehicle-finance specialist SFB (rates on request) |
| ITI Finance | NBFC | Rate on request | Check with lender | Check with lender | 12 yrs at maturity | Niche asset-backed NBFC (rates on request) |
| Mahindra Finance | NBFC | Rate on request | Check with lender | Check with lender | 12 yrs at maturity | Semi-urban & rural reach (rates on request) |
Used car loan interest rates by loan amount (₹5L vs ₹10L+ vs ₹20L+)
Several private banks and NBFCs offer lower interest rate slabs when your loan amount crosses ₹10 lakh or when you finance a ₹20 lakh+ premium/luxury used car. Compare how ticket size changes your floor rate:
| Lender | Up to ₹10 Lakh | Above ₹10 Lakh | ₹20 Lakh+ (Premium / Luxury Segment) |
|---|---|---|---|
| Axis Bank | From 10.75% p.a. | From 10.00% p.a. | 11.25% p.a. dedicated ₹20L+ slab |
| IDFC First Bank | From 10.75% p.a. | From 10.75% p.a. | 11.49% p.a. dedicated ₹20L+ slab |
| Bajaj Finserv | 12.50% – 16.00% p.a. | 11.99% – 15.00% p.a. | 11.99% p.a. dedicated ₹20L+ slab |
| HDFC Bank | 11.50% p.a. (flat anchor) | 11.50% p.a. (flat anchor) | 11.50% p.a. (up to ₹50L+ subject to valuation) |
| ICICI Bank | From 10.75% p.a. | From 10.75% p.a. | From 10.75% p.a. |
Used car loan interest rates by CIBIL score and income proof (TVS Credit October 2026 matrix)
Most banks publish only a single "starting from" rate. TVS Credit is the only national lender in Nxcar's October 2026 annexure that publishes every cell of its CIBIL score × Income Proof (IP) vs No Income Proof (NIP) matrix — showing you the exact cost of a lower credit score or missing ITR:
| CIBIL Score Band | Salaried — Income Proof (IP) | Self-Employed — Income Proof (IP) | Salaried — No Income Proof (NIP) | Self-Employed — No Income Proof (NIP) |
|---|---|---|---|---|
| 750 and above | 11.50% p.a. | 11.99% p.a. | 13.50% p.a. | 13.50% p.a. |
| 700 to 749 | 13.00% p.a. | 13.00% p.a. | 15.00% p.a. | 15.00% p.a. |
| 650 to 700 | 14.50% p.a. | 15.00% p.a. | 16.00% p.a. | 17.00% p.a. |
| -1 / NH (First-Time Buyer) | 15.00% p.a. | 15.00% p.a. | 16.50% p.a. | 17.00% p.a. |
See all lenders that approve sub-700 credit profiles in our rates for a CIBIL below 700 guide, or compare category winners to find the best lender for your profile.
Used car loan interest rates for older cars (8 to 15 years old)
Most banks cap the combined age of the car plus loan tenure at 10 years (for example, a 7-year-old car can only get a 3-year loan). If you are buying an 8 to 12 year old vehicle and want a 3 to 4 year repayment tenure, two lenders in Nxcar's annexure allow the vehicle age at loan maturity to reach 15 years: Kotak Mahindra Bank (11.75% to 15.00% p.a.) and Equitas Small Finance Bank (13.00% to 15.50% p.a.). Asset-backed NBFCs such as Shriram Finance (14.00% to 17.50%) and Kogta Financial (15.00% to 18.00%) also finance older passenger vehicles up to 12 years at maturity.
Used car loan rate trend in October 2026 (RBI Repo Rate at 5.50%)
On 7 October 2026, the Reserve Bank of India's Monetary Policy Committee (MPC) raised the policy repo rate by 25 basis points to 5.50%. Despite the 25 bps policy hike, retail used car loan rates across Nxcar's 27 partner banks and NBFCs remained unchanged in October 2026 for two structural reasons:
- Fixed-rate retail books: Unlike home loans (which are directly EBLR/repo-linked), 90%+ of Indian used car loans are fixed-rate contracts priced off 3-to-5-year bank MCLR and NBFC non-convertible debenture (NCD) funding costs.
- Festive Navratri–Diwali spread compression: Private banks (Axis Bank at 10.00%, ICICI Bank and IDFC First Bank at 10.75%) absorbed the 25 bps funding cost increase during the October 2026 festive quarter to capture prime 750+ CIBIL market share.
8 proven ways to get the lowest used car loan interest rate
1. Cross the ₹10 lakh threshold at Axis Bank if your car is near ₹10.5L
Axis Bank drops its starting rate from 10.75% to 10.00% p.a. at ₹10,00,000. Borrowing ₹10.0L instead of ₹9.6L lowers the rate on the entire principal by 75 bps.
2. Use Tata Capital Velocity (11.25%) if your CIBIL is 730–749
Many banks reserve their 10.75% slab for 750+ CIBIL. Tata Capital's Velocity digital program unlocks 11.25% starting at a 730 CIBIL score.
3. Submit 2 years' ITR or 3 payslips even if eligible for NIP
Switching from a No-Income-Proof (NIP) track to an Income Proof (IP) track at TVS Credit immediately cuts your rate by 1.50% to 2.00% p.a.
4. Pick a car under 5 years old
Cars aged 1 to 4 years qualify for Tier-1 bank prime grids (10.00%–11.50%), whereas cars aged 7+ years carry a 0.75%–1.50% vintage loading.
5. Use Kotak's ABB surrogate if your ITR net profit is low
Self-employed buyers with healthy 6-month bank balances get 11.75%–13.50% at Kotak Mahindra Bank instead of 15.00%+ on NBFC NIP tracks.
6. Make the 750+ CIBIL spouse the primary applicant
Automated scorecards price the loan off the primary applicant's bureau score. Always place the higher-CIBIL earning member first.
7. Put down 20%–25% margin money if your CIBIL is 650–699
Lowering LTV to 75%–80% unlocks Piramal Finance (13.00%) and Hero FinCorp (13.25%) instead of high-risk 17%+ bands.
8. Avoid multiple direct bank inquiries
Three hard CIBIL pulls in 30 days can knock 15–25 points off your score and push you out of the 750+ slab right before sanction.
Nxcar Used Car Loan Interest Rate History (2026 Monthly Log)
| Month | RBI Repo Rate | Lowest Bank Rate | Median Starting Rate (24 Lenders) | Highest NBFC Ceiling |
|---|---|---|---|---|
| October 2026 | 5.50% (+25 bps on 7 Oct) | 10.00% (Axis Bank) | 13.00% | 21.01% (Cars24 FS) |
| September 2026 | 5.25% | 10.00% (Axis Bank) | 13.00% | 21.01% (Cars24 FS) |
| August 2026 | 5.25% | 10.00% (Axis Bank) | 13.00% | 21.01% (Cars24 FS) |
| June – July 2026 | 5.25% | 10.00% (Axis Bank) | 13.00% | 21.01% (Cars24 FS) |
Frequently Asked Questions (Used Car Loan Interest Rates)
Which bank has the lowest interest rate for a used car loan in October 2026?+
Axis Bank offers the lowest used car loan interest rate in India in October 2026 at 10.00% per annum for loan amounts of ₹10 lakh and above (and 10.75% for loans up to ₹10 lakh). ICICI Bank and IDFC First Bank are tied second at 10.75% p.a., while Tata Capital's Velocity program leads NBFCs at 11.25% p.a.
Why is a used car loan interest rate higher than a new car loan rate?+
Used car loan interest rates are 1.50 to 4.50 percentage points higher than new car loan rates because pre-owned vehicles have harder-to-predict resale values, higher maintenance variance, and extra RTO hypothecation transfer steps. Banks price new car loans at 8.75%–10.50%, whereas used car loans start at 10.00%–11.75% at banks and 11.25%–21.01% at NBFCs.
What is the average used car loan interest rate in India right now?+
Across the 24 lenders with published October 2026 rate cards in Nxcar's partner network, the median starting rate is 13.00% per annum. Private and public banks average a starting rate of 11.50% p.a., while NBFCs average 14.56% p.a. — a 3.06 percentage point gap.
Are used car loan interest rates fixed or floating?+
Almost all used car loans from private banks (HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank) and NBFCs (Bajaj Finserv, Tata Capital, TVS Credit, Cholamandalam) are fixed-rate reducing-balance loans, meaning your monthly EMI stays constant throughout the tenure. Select PSU banks offer repo-linked floating-rate schemes.
How did the October 2026 RBI repo rate decision affect used car loan rates?+
On 7 October 2026, the RBI Monetary Policy Committee raised the policy repo rate by 25 basis points to 5.50%. Because most bank and NBFC used car loans are fixed-rate contracts funded via marginal cost of funds and term borrowings, existing borrowers saw no change to their EMI, while new-loan card rates held steady across all 27 Nxcar partner lenders in October 2026.
Find your exact rate across all 27 lenders
Filter by your CIBIL band, car age, and income proof or apply with a single form.