Used car loans in India: EMI, down payment and the fine print nobody reads

Most lenders finance 70–85% of a used car's valuation, not its asking price. That gap is why buyers are surprised at the desk, so budget a down payment of at least 20%.

Interest rates on pre-owned cars usually run higher than on new ones — expect somewhere between 9% and 14% depending on your credit score, income proof and the car's age.

Car age matters twice: most banks will not fund a car that will be older than ten years when the loan ends, which quietly shortens your tenure and raises the EMI.

Keep the EMI under 15% of your monthly take-home, and the tenure under five years. Longer tenures look comfortable and cost a lot more in total interest.

Read three lines in the sanction letter: the processing fee, the foreclosure charge, and whether insurance is bundled. Those three decide the real cost of the loan.

Before signing, compare the lender's written EMI schedule, fees, foreclosure terms and total repayment amount.