Higher interest rates, limited tenures drive used-car loan EMIs up

Consider top-up home loan and personal loan; they are cheaper and you could get 100% financing

Bajaj Finance recently collaborated with Cars24, an e-commerce platform for pre-owned vehicles, to offer used-car financing. Several banks and non-banking financial companies are already active in this space.

India’s used-car market was valued at $27 billion in 2020 and is expected to reach $50 billion, registering a compound annual growth rate of 15 per cent between 2021 and 2026, according to market research firm Mordor Intelligence. However, pre-owned car loan is still a nascent segment.

“Consumer finance penetration in the Indian used-car industry stands at only 15 per cent,” says Anup Saha, deputy chief executive officer (CEO), Bajaj Finance.

Buyers opting for a