State Bank of India Used Car Loan
A used-car loan is a secured retail credit facility used to finance the purchase of a pre-owned car, with the vehicle hypothecated to the lender until the borrower repays the amount over regular instalments. It suits salaried employees, professionals and self-employed individuals who want to buy a second-hand car and spread the cost rather than pay the full price upfront.
State Bank of India, a public-sector bank founded in 1955 and headquartered in Mumbai, offers this finance under its Certified Pre-Owned Car Loan scheme, which is aimed at buyers of certified, quality used vehicles, including those routed through manufacturer-backed pre-owned programmes. State Bank of India's version emphasises structuring the repayment around the age of the vehicle and assessing the loan against the vehicle's value, and it points buyers to multiple ways of applying, including its contact centre and missed-call and SMS channels.
Documentation differs for salaried and self-employed applicants, and the bank waives Income Tax Return submission for salary-account holders who meet its account-tenure condition. Vehicle-specific paperwork covering ownership, insurance and valuation is required, and insurance is coordinated at disbursement. Approval, loan amount and the terms offered are assessed case by case against the bank's eligibility and income-assessment norms, and sanction is not guaranteed.
At 10.45%, State Bank of India has one of the lowest starting rates of the 11 lenders we track for used car loans.
Eligibility
Loan terms
- Aimed at certified, quality pre-owned cars, including manufacturer-backed used-car programmes
- Repayment structured around the age of the vehicle being financed
- Loan sized against the vehicle's assessed value with a margin requirement
- Multiple application channels including contact centre and missed-call/SMS options
- Insurance of the financed vehicle coordinated at disbursement
Documents
- Salaried: Statement of bank account for the last 6 months
- Salaried: Two passport-size photographs
- Salaried: Latest salary slip and Form 16
- Salaried: Income Tax Returns for the specified years (waived for salary-account holders meeting the bank's account-tenure condition)
- Self-employed/Professionals/Businessmen: Statement of bank account for the last 6 months
- Self-employed/Professionals/Businessmen: Two passport-size photographs
- Self-employed/Professionals/Businessmen: Income Tax Returns for the specified years
- Self-employed/Professionals/Businessmen: Audited Balance Sheet and Profit & Loss statement, and Shop & Establishment Act certificate or sales-tax certificate
- Vehicle documents: Copy of the seller's Registration Certificate (RC) book
- Vehicle documents: Copy of the seller's motor insurance
- Vehicle documents: Valuation report and margin receipt
Fees & charges
FAQ
A used vehicle is riskier collateral and depreciates faster, so lenders price the rate higher and finance a smaller share of the value. NBFCs often approve older cars and thinner files that banks decline.
Every row is date-stamped with the day we last checked it, and links to the lender’s published material so you can confirm it yourself. A row we confirmed against the source reads “Verified”; one we could only sight reads “as of”, and is not presented as confirmed. Anything we have not re-checked in 60 days is marked “rate under review” rather than left to look current. We do not claim a fixed re-checking cycle — the date on each row is the honest answer.
No. Viewing rates is not a credit enquiry and has no score impact. A hard enquiry happens only when you formally apply to a lender.
More from State Bank of India
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- New Car LoanRate8.7 – 9.85%Fee₹750 – ₹2KMax tenure7 yr