How do lenders treat odometer-tampered cars in loan processing?

Lenders don’t take odometer tampering lightly. For them, mileage is a simple way to judge how much life is left in the car, and whether the loan makes sense. It matters because most used-car buyers simply go by the mileage shown during a test drive, especially when they’re planning to take the car on EMI.

• Lenders first check if the reading looks real. They compare the odometer with service records, valuation reports, and any available history. If the numbers don’t line up, the application may slow down and lenders may go for a closer look.
• The loan amount can be cut down. If the car seems more used than claimed, the value is marked lower. In most cases, this means the lender offers a smaller loan and asks you to pay a higher down payment from your own savings.
• In serious cases, the loan is refused. When the gap is big, some lenders simply decline the case. They worry about repair costs and as well as resale value if something goes wrong later.

Before you apply, ask for service bills and see if mileage grows normally over time. If you spot a clear mismatch, it’s safer to address it right away than when the loan is in process. Save a copy of the listing and bills; it helps if there’s any dispute later.