What is the minimum amount for a used car loan?

Yes, there’s a minimum amount if you’re looking to finance a used car—the magic number is ₹1 lakh.

If you’re wondering why lenders set this limit, it’s all about making the loan practical and useful for everyone. Loans for less wouldn’t really make sense after paperwork and processing fees. Whether you’re grabbing a humble hatchback or a little sedan, ₹1 lakh is the point where the conversation starts—anything below, and it’s not going to fly.

Here’s your cheat sheet:

• Minimum loan amount: ₹1 lakh
• Maximum loan value: Up to 90% of the used car’s price
• Interest rate starts from 10% p.a.

So before you dream of driving away, make sure your car’s value is comfortably above that bottom line. If not, sometimes it’s smarter to save up or look at a slightly pricier car—it’ll open the doors for quick and hassle-free financing.