Muthoot Finance Used Car Loan — Interest Rates, Eligibility & EMI (October 2026)
Muthoot Finance (via its vehicle finance division) prices used car loans from 14.75% to 18.75% a year on Nxcar. Among the broad-eligibility NBFCs that actively consider borrowers with CIBIL scores below 700 or informal income, Muthoot has the lowest starting rate at 14.75%—beating TVS Credit (15.25%), Cholamandalam (16.01%) and SK Finance (16.01%).Its 18.75% ceiling is also lower than TVS Credit's 20.00% and IndoStar's 21.01%. Muthoot achieves this by combining physical vehicle valuation with local branch verification, making it particularly strong in South India and semi-urban markets.If your CIBIL score is in the 620 to 699 band or your income is semi-documented, Muthoot Finance should be one of the first NBFCs you compare against TVS Credit.
Comparing multiple banks before applying? Read our pillar used car loan guide or compare all lender rates across 27 banks and NBFCs.
Muthoot Finance Used Car Loan Key Facts (October 2026)
| Lender Category | NBFC (Muthoot Vehicle & Asset Finance / Group) |
|---|---|
| Interest Rate (p.a., Reducing Balance) | 14.75% to 18.75% |
| EMI per ₹1 Lakh (5-Year Tenure) | ₹2,366 – ₹2,580 |
| Maximum LTV (Funding Share) | Up to 80% 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 | 600 to 650+ (evaluates thin file and low CIBIL) |
| 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: Lowest starting floor (14.75%) among sub-700 CIBIL friendly NBFCs on Nxcar. (Median sanction time: 36 hrs; average loan size: ₹4,30,000).
what is Muthoot Finance's used car loan interest rate by slab?
Below is the October 2026 slab-wise pricing structure for Muthoot Finance across loan sizes, CIBIL bands, and income documentation tracks:
| Borrower / Loan Slab | Indicative Interest Rate (p.a.) | Key Underwriting Note |
|---|---|---|
| All loan sizes | 14.75% to 18.75% | Broad-eligibility risk pricing |
Muthoot Finance Used Car Loan: Honest Pros and Cons
Why Borrowers Choose Muthoot
- • Lowest starting rate (14.75%) among broad-eligibility NBFCs that consider sub-700 CIBIL profiles
- • 18.75% ceiling is lower than TVS Credit (20.00%), IndoStar (21.01%) and Vastu (21.01%)
- • Accepts field-verified self-employed and semi-urban income profiles
Matching borrower guide: used car loan for a low CIBIL score →
Limitations & Watch-Outs
- • Too expensive (14.75%+) for prime 750+ CIBIL salaried borrowers who qualify at banks
- • Lower LTV may be offered on weak credit profiles
Muthoot Finance Used Car Loan EMI Table (₹3L to ₹12L over 5 Years)
Monthly EMIs and 5-year total interest computed on reducing-balance math across Muthoot's lowest (14.75%), mid (16.75%), and ceiling (18.75%) rates:
| Loan Amount (60 Months) | At Lowest Rate (14.75%) | At Mid Rate (16.75%) | At Ceiling Rate (18.75%) |
|---|---|---|---|
| ₹3,00,000 | ₹7,098/moInterest: ₹1,25,860 | ₹7,416/moInterest: ₹1,44,930 | ₹7,741/moInterest: ₹1,64,457 |
| ₹5,00,000 | ₹11,829/moInterest: ₹2,09,767 | ₹12,359/moInterest: ₹2,41,551 | ₹12,902/moInterest: ₹2,74,096 |
| ₹8,00,000 | ₹18,927/moInterest: ₹3,35,627 | ₹19,775/moInterest: ₹3,86,481 | ₹20,643/moInterest: ₹4,38,553 |
| ₹12,00,000 | ₹28,391/moInterest: ₹5,03,441 | ₹29,662/moInterest: ₹5,79,721 | ₹30,964/moInterest: ₹6,57,829 |
Quick Used Car Loan EMI Calculator
Adjust loan amount, interest rate, and tenure on reducing-balance math
Estimated Monthly EMI
₹11,829/mo
Muthoot Finance Pre-Owned Car Loan Eligibility & Documents
Salaried Applicants
₹15,000 to ₹18,000 a month (Check with lender)
Self-Employed Applicants
Field-assessed / cash-flow income accepted
| 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) | |
Muthoot Finance vs Other Used Car Loan Lenders
See how Muthoot Finance 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 |
|---|---|---|---|---|
| Muthoot Finance (This Page) | 14.75% to 18.75% | Up to 80% to 85% of valuation (Check with lender) | 12 yrs at maturity | Broad eligibility, lower CIBIL & semi-urban buyers |
| Piramal Finance | 14.50% to 16.50% | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | Self-employed & salaried in Tier 2/3 cities |
| HDB Financial Services | 15.00% to 17.51% | Up to 85% of valuation (Check with lender) | 12 yrs at maturity | HDFC Bank subsidiary for non-prime profiles |
| IndoStar Capital | 15.01% to 21.01% | Up to 80% of valuation (Check with lender) | 12 yrs at maturity | Older cars, commercial-adjacent & sub-700 CIBIL |
| 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 (Muthoot Finance Used Car Loan)
What is Muthoot Finance's used car loan interest rate in October 2026?+
Muthoot Finance's used car loan interest rate ranges from 14.75% to 18.75% 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 Muthoot Finance fund for a second-hand car (maximum LTV)?+
Muthoot Finance finances Up to 80% 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 Muthoot Finance used car loan?+
Muthoot Finance 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 Muthoot Finance pre-owned car loan?+
Muthoot Finance's typical CIBIL requirement is 600 to 650+ (evaluates thin file and low CIBIL). ₹15,000 to ₹18,000 a month (Check with lender)
Can I pre-pay or foreclose my Muthoot Finance used car loan early?+
Yes. Foreclosure and pre-payment terms at Muthoot Finance 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.
Does Muthoot Finance approve used car loans for CIBIL scores below 700?+
Yes. Muthoot Finance is one of Nxcar's broad-eligibility NBFC partners that evaluates CIBIL scores below 700 on a risk-priced basis between 14.75% and 18.75%, subject to vehicle valuation and field verification.