Used car loan eligibilityEverything you need to know

If you're eyeing that dream car or contemplating upgrading your current ride, a used car loan can be your key to making it happen.

However, before you embark on this exciting journey, it's essential to understand the eligibility criteria, necessary documentation, and other vital aspects of securing a used car loan.

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Eligibility criteria for used car loan


To apply for a used car loan, you typically need to be at least 21 years old. Generally, there is an upper age limit of 65 years, at the time of loan maturity

Employment statusEmployment status

We prefer applicants who have been employed for a minimum period of six months to a year, and provide funding to salaried professionals,self-employed individuals, and pensioners

Minimum incomeMinimum income

Your income plays a pivotal role in determining your eligibility. We have a minimum income requirement of ₹15,000 that you must meet to qualify

Credit scoreCredit score

Your credit score reflects your creditworthiness. There is usually a minimum credit score requirement for used car loans, but a score of 650 or higher is recommended

Avg. quarterly balanceAvg. quarterly balance

The minimum average quarterly balance needed in your bank account is ₹1,000 to become eligible for a used car loan

Documents required for used car loan

Income proof
Income proof

You'll need to provide documents to prove your income, such as salary slips, or income tax returns

Bank statement
Bank statement

Last 6 months bank statement for your primary account where you receive your income

PAN card
PAN card

You’ll have to give a copy of your PAN card during the loan approval process

Address proof
Address proof

Documents like your passport, utility bills, or rental agreement serve as valid address proof

Identity proof
Identity proof

This includes your Aadhaar card, passport, voter ID, or any other government-issued identity document (PAN can also be considered as an ID proof)

Know more aboutloan amount, tenure and interest rates

The amount you can borrow for your used car and the tenure of the loan are crucial factors. We offer loans ranging from 70% to 100% (0 Down payment) of the car's value, with repayment tenures typically extending from 1 to 6 years. The loan amount and tenure may vary based on your eligibility.

Why choose CARS24 loans?

Finance it your way!

Finance it your way!

Customise EMIs with as low as zero down payment and up to 6 year loan tenure starting at 12% ROI

Loan offer in minutes

Loan offer in minutes

Check your eligibility and get a loan offer within 2 minutes with minimal documentation

Pan India financing

Pan India financing

Coverage across all major indian cities with 15,000+ serviceable PIN codes`

Loans for any car

Loans for any car

Get a loan for pre-owned cars up to 14 years of age

Frequently asked questions

Frequently Asked Questions

What are the most common eligibility criteria for a used car loan?arrow

The most common eligibility criteria include:
  • Minimum age of 21 years.
  • Maximum age at loan maturity (usually around 65-70 years).
  • Steady employment or a regular source of income.
  • A minimum credit score, typically ranging from 650 to 750.

What if I don't meet the minimum credit score requirement?arrow

If you don't meet the minimum credit score requirement, you can consider these options:
  • Apply with a co-borrower who has a better credit score.
  • Work on improving your credit score by clearing outstanding debts and paying bills on time.

What if I don't have a steady income?arrow

If you don't have a steady income, you may face challenges in qualifying for a loan. In such cases, you can:
  • Include additional sources of income or a co-borrower to strengthen your application.

What if I don't have a credit score?arrow

Having no credit score can be a hurdle in securing a loan. You can:
  • Start building a credit history by getting a secured credit card or a credit-builder loan.

What is the minimum credit score required for a used car loan?arrow

The minimum credit score required can vary, but it often falls within the range of 650 to 750. A higher credit score can help you secure better loan terms.

What are the factors that CARS24 considers when assessing eligibility for a used car loan?arrow

We consider several factors, including your credit score, income, employment history, age, the loan amount, and the loan's tenure.

If you have further questions, please do not hesitate to reach out to us on care.loans@cars24.com