Looking to buy your first car? Equitas Used Car Finance makes it possible to own wide range of used car with financial assistance and tailored made solutions as per your need or requirement.

Equitas Used Car Finance helps you with:
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Part-Preclosure of loans
Enabling you to close loans quicker which translates to lesser interest rate
Customer Friendly Repayment Procedure
Offering you different type of repayment schemes to suit to the requirement of clients
Insurance Premium Payment Rebate
Only Bank in the country to offer rebate for clients who choose to remit insurance premium amount to Equitas in monthly Installments

Used Car Loan

We at Equitas Small Finance Bank, offer Used Car loans at competitive rates for a wide range of vehicles including all Hatchback, Sedan, MUVs and SUVs. We offer any type of loans like for Purchase of Cars, Refinancing option to clients and Balance Transfer of Car loan from one financier to Equitas Small Finance Bank.

We have associated with all major dealers across all locations to enable hassle free delivery of the car with faster turn around time in financing.

Equitas Small Finance Bank is the “Preferred Financier” across all major manufacturers in India and customers have trusted us for our expertise and perfectly suited loan solutions

  • Superior Turnaround Time
  • Hassle free documentation
  • Finance up to 100% on your Used car
Product Features:
  • Financial assistance available up to 100% on Used cars
  • Competitive rate of interest
  • Loan tenure up to 84 months
  • Hassle free documentation
  • Superior service and quick turnaround time
Why choose Equitas Small Finance Bank ?
  • Over 3 million satisfied customers
  • Branch network of 200+ exclusive Vehicle Finance branches in 12 states & 2 union territories
  • Expertise in Used Car
  • Transparent processing of loans


                                Mean rate and Interest rate range for the quarter Jan 2024 – Mar 2024
Segment          Mean Interest Rate                     Interest Rate Range (Fixed)
    Min Rate (in %) p.a.                 Max Rate (in %) p.a.
Used Car                        17.64%                11%                           25%
•Mean rate = Sum of rate of interest of all loan accounts / Number of all loan accounts.
                                Annualised Percentage Return (APR) for the quarter Jan 2024 – Mar 2024
Segment              Min Rate (in %)     Max Rate (in %)  
Used Car                       11%               25%  


                            Interest Rate Effective From 1st October 2023
Product Interest Rate (in %) p.a. Tenure in (Months)
Used Car Loan        9.50% - 29.00%           12 - 84


Type Charges
Processing Charges# 1% to 2%
Documentation charge Rs 1500 (inclusive of GST)
Overdue charges (ODC) 36% p.a
Cheque bounce charges (CBC) Rs 500 for every cheque bounce
Insurance Renewal penalty charges (IRP) 258
Pre closure charges Foreclosure payment amount *3 or 4%
Part Pre payment charges 2%
Field visit charges 250
Repossession charges (paid to the repo vendor) Minimum Rs.3000/- to Maximum Rs.25000
Valuation charges (Paid to the valuator vendor) Rs. 500-750
Legal charges (paid to the vendor) Minimum Rs.250/- to Maximum Rs.30000
Parking Yard charges (Paid to the vendor) Rs.50/- Per day or actuals depending on vehicle type whichever is higher
Duplicate NOC 500
Stamp Duty At Actuals
Bank Swap charges Upto Rs.1000/-
EMI Due Date Change 24% on POS into No. of days Divided by 365

*Goods and Services Tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable)

# Processing fee would depend upon the loan amount, the nature of vehicle and other factors

Terms and Conditions:

  • Application forms complete in all respects will be processed within 14 days from the date of receipt of the application form.

Used Car Finance FAQs

Why avail a Used Car Loan from Equitas Small Finance Bank?
  • Hassle free loan sanction process and finance up to 100% of asset cost
  • Simpler documentation and faster turnaround time
  • Loan tenures up to 7 years
  • Customised EMI structure to suit your business needs
  • No hidden charges, & complete Transparency in loan processing
What types of loan facility available under Used car Finance of Equitas Small Finance Bank?

We offer term loan facilities:

  • Purchase of Used cars
  • Refinancing options for pre-owned cars
  • Balance Transfer and Top-up loans / Insurance loans / Parallel Top up loans etc.
Can I add my motor insurance and credit shield insurance as add on to the loan at the time of sanction?

Yes, this requirement has to be informed to the relationship executive at time of availing the loan

How is the interest charged/calculated?

Interest is charged on a fixed rate basis and is dependent on the, product, customer risk profile and applicable scheme.

How do I approach Equitas Small Finance Bank for a Used car Loan?
  • Call us at our 24 hour Customer Care Centre
  • Walk in to any of our branches
  • Contact any of our direct sales personnel
Is a personal guarantor/co applicant a must?

The above requirement is based on the respective customer risk profile and internally laid down polices of the bank.

Can I make part payment on my existing Used car loan?

Yes, The borrowers can prepay the loan after 6 months of availing it. Part prepayment is allowed twice in a year Minimum amount acceptable is 20% of future principal with Max cap of 25% in a year.

There is an option to keep the same EMI and reduce tenure, or keep the same tenure and reduce EMI, however loan tenure cannot exceed the original tenure opted at the time of funding

Charges of 5% part payment charges is applicable

Can I foreclose my Used car loan?

Loan foreclosure can be done by visiting any ESFB branch or by contacting our Branch manager. However necessary foreclosure charges may apply.

After I pay the last EMI, will I get the legal claim on the vehicle?

After the payment of the last EMI, the bank will issue a loan closure letter, Form 35, and a No Objection Certificate (NOC) to the RTO for removing the lien from the RC book.

To make payments for the Loan via NEFT / RTGS, please contact your Home Branch – Branch Manager for further details

Loan Application Forms and Loan Agreements can be accessed in Form Centre