These banks are offering cheap credit for old cars, check out the full list

If you want to borrow an old car, there are many banks that offer loans at low interest rates. Loans are cheap at public sector banks, but the facility is only available to existing customers. Private banks also offer loans with the help of issuers. Also, private banks can lend a car inspection facility.

Bank Interest rate% Processing fee Time limit
Bank of Canara 7.30-9.90 0.25% of the loan amount (Rs 1,000-5,000) 5 years
Bank of India 7.45-8.55 1% loan amount 3 years
Union Bank of India 8.90-10.50 1,000 5 years
South Indian Bank 13.30-13.75 1% loan amount 5 years
State Bank of India 9.50-10.50 0.50% of loan amount 5 years
HDFC 13.75-16.00 1% loan amount 7 years
The Federal Bank 13.80 1,500-2,500 5 years
Axis Bank 14.45-16.45 1% loan amount 5 years

For older cars, when we go for a loan, the most important is the debt to ratio ratio, which depends on how much you borrow and for how long. If banks are offering loans at cheaper rates but your debt is less than the ratio, you won’t get much.

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Suppose you want a loan of 5 lakh rupees for an old car, but if your debt is 60% to the ratio value, you only get 3 lakh rupees. Lending an old car is always a risky business for banks. Banks do not trust third party quality checks.