Axis Bank offers competitive used car loans with interest rates projected to start from 13.70% p.a. in late 2025 and unique benefits like up to 100% on-road financing for select customers. This guide and our Axis Bank used car loan EMI calculator are engineered to provide you with complete clarity, helping you plan your purchase with confidence.
Financing your pre-owned vehicle through Axis Bank, one of India’s leading private sector banks, combines reliability with a streamlined digital process. Here’s a quick overview of various attributes related to the loan:
Axis Bank Used Car Loan: Key Facts (October 2025)
| Attribute | Value | Notes | Source | Last Checked |
| Interest Rate Range | 13.70% – 15.70% p.a. | Fixed Rate. The final rate depends on your CIBIL score and relationship with the bank. | Axis Bank Official Site | October 12, 2025 |
| Max Loan Tenure | 7 Years (84 Months) | Tenure up to 7 years is for select customers; 5 years is the standard maximum. | Axis Bank Official Site | October 12, 2025 |
| Processing Fee | ₹5,500 to ₹12,000 | A non-refundable fee charged at the time of loan processing. | Axis Bank Fees | October 12, 2025 |
| Max LTV | Up to 100% of on-road price | For select pre-approved customers. Standard LTV is typically 85-90%. | Axis Bank Official Site | October 12, 2025 |
| Prepayment Policy | 5% on outstanding principal | Part-payment is typically not allowed for the first 12 months. | Axis Bank Fees | October 12, 2025 |
| Vehicle Age Limit | Not >10 years at loan maturity | The car’s age plus the loan tenure should not exceed 10 years. | BankBazaar Axis Page | October 12, 2025 |
| Loan Amount Range | ₹1,00,000 to ₹75,00,000 | The maximum loan amount is subject to the car’s valuation and your eligibility. | Axis Bank Official Site | October 12, 2025 |
| Eligibility Basics | Age: 21-65 yrs. Income: >₹20k/mo. | Applicable for Salaried (min. 2 yrs exp.) & Self-Employed (min. 3 yrs business). | Axis Bank Eligibility | October 12, 2025 |
Check Your Eligibility with Axis Bank
Quick pre‑check. No hard credit pull. Policy terms apply.
How Does Axis Bank’s Used Car Loan Work?
Axis Bank’s pre-owned car loan is engineered for clarity and efficiency, with specific features designed to benefit the borrower. The loan structure is not a one-size-fits-all product but is customized based on your financial standing and the vehicle you choose. Here’s a granular breakdown.
Interest Rate Structure and Financial Stability
Axis Bank offers a fixed interest rate, a significant advantage that shields you from future increases in market lending rates. This ensures your Equated Monthly Installment (EMI) remains constant from the first payment to the last, making monthly budgeting precise and predictable. The rate, which falls between 13.70% and 15.70% p.a., is determined by:
- Credit Score: A CIBIL score of 750 or higher is the most critical factor in securing a rate at the lower end of this band.
- Customer Relationship: Existing Axis Bank customers, particularly those in Priority or Burgundy banking programs, often receive preferential rates.
- Loan Quantum & Tenure: Larger loan amounts or specific tenures might also influence the final rate offered.
Use the calculator above to model this: toggle the interest rate slider by just 0.5% to see the immediate and substantial impact on your total interest payable over a 5-year or 7-year term.
High-Value Financing and Flexible Tenure Options
Axis Bank stands out with its financing structure, designed to minimize your upfront cash outflow.
- Loan Amount: You can secure financing from ₹1,00,000 up to ₹75,00,000.
- Loan-to-Value (LTV): This is a key benefit. For select pre-approved or premium customers, Axis Bank offers up to 100% of the car’s on-road price. This means for a car valued at ₹8 Lakhs, an eligible applicant would require zero down payment. For most other customers, the bank offers a highly competitive LTV of 85-90% of the vehicle’s valuation.
- Tenure Flexibility: The standard loan tenure extends up to 5 years (60 months). However, for certain profiles and newer used cars, the bank offers an extended tenure of up to 7 years (84 months). A longer tenure reduces your monthly EMI but increases the total interest paid. For example, on a ₹6 lakh loan at 14%, a 5-year EMI is roughly ₹13,965, while a 7-year EMI drops to approximately ₹11,000, freeing up monthly cash flow.
Clear-Cut Eligibility and Minimal Documentation
The eligibility criteria are well-defined for both salaried and self-employed individuals aged 21 to 65.
- Salaried: Minimum net annual salary of ₹2,40,000 (i.e., ₹20,000/month) and at least 2 years of total work experience.
- Self-Employed: Proof of business vintage for a minimum of 3 years and a net annual business income that meets the bank’s requirements (verified via ITRs).
The documentation process is streamlined to be as hassle-free as possible, typically requiring:
- KYC Documents: PAN Card and Address Proof (Aadhaar, Passport, etc.).
- Income Proof: Latest 3 months’ salary slips and 6 months’ bank statements (for salaried) or last 2 years’ ITRs with financials (for self-employed).
- Vehicle Documents: A copy of the Registration Certificate (RC) and vehicle insurance.
Transparent Fees and Charges
Axis Bank maintains a clear fee structure, avoiding hidden costs.
- Processing Fee: This is a flat fee ranging from ₹5,500 to ₹12,000, not a percentage of the loan amount. This makes the upfront cost definite and easy to plan for.
- Foreclosure Charges: If you close the loan before its scheduled tenure, a charge of 5% is levied on the outstanding principal. For an outstanding balance of ₹4,00,000, this fee would be ₹20,000. Part-payment facilities are generally restricted during the first 12 months.
- Other Charges: Standard charges like stamp duty (as per the respective state’s law) and late payment penalties (e.g., 2% per month on the overdue amount) are applicable.
FAQ
The information you need to use this EMI calculator is the loan amount, the annual interest rate, and the loan tenure in months or years; optionally add a monthly prepayment to estimate interest saved and earlier payoff using standard amortization mathematics accurately.
Changing the loan tenure (length) affects your EMI and total interest by making shorter terms raise EMI but cut lifetime interest, while longer terms lower EMI yet increase total interest; use the tenure slider to see modeled changes immediately before deciding prudently.
The used‑car APR range is not published here. For planning, test scenarios between 10%–16% APR in the calculator, then rely on the sanctioned APR in your offer letter and MITC for final numbers, repayment schedule, and fee disclosures respectively.
Axis Bank’s part‑prepayment and foreclosure policy is contract‑specific. From 1 Jan 2026, floating‑rate individual loans should have no prepayment charges per regulation; confirm fixed versus floating in the sanction, then model savings via the prepayment input confidently.
Axis Bank offers up to 100% on-road financing for its pre-owned car loans. However, this is typically available for pre-approved customers with a strong existing relationship and excellent credit history with the bank. The LTV you can expect is usually valuation‑ and profile‑dependent. Many market cases align near 80%–85% of valuation.
The vehicle age limits that usually apply ensure the loan ends before the car reaches roughly ten years of age. Specific model‑year policies vary; confirm permissible age and residual life during valuation and sanction to prevent eligibility concerns later.
Yes, self-employed professionals and business owners are eligible. They need to provide proof of business stability, typically for a minimum of 3 years, along with their income tax returns and bank statements.
The documents you need typically include KYC (ID/address), income proof, recent bank statements, vehicle RC, insurance, and seller/valuation papers. The final checklist may differ by profile and scheme; obtain the latest list before submission to reduce rework.
The typical disbursal turnaround time often ranges 24–72 hours post‑sanction and documentation in market practice. Timelines vary by branch workflow, valuation, and compliance steps. Keep documents ready, respond quickly, and track status to minimize delays.
Changing the EMI due date after disbursal is a policy‑driven service. Submit a formal request with updated mandate details if allowed. Charges or limits may apply; confirm with your servicing branch before adjustments to avoid administrative friction.
Processing fees are generally non‑refundable because they cover evaluation and administrative work. Any exception depends on policy and the processing stage. Review fee disclosures in the application and sanction, and clarify refundability with support before payment.
Yes, Axis Bank offers a ‘Top-up on Existing Auto Loan’ facility. If you have a good repayment track record, you may be eligible to avail a top-up loan on your current used car loan for other personal needs.
To compare tenures and APRs, move the tenure and rate sliders to model EMI and total interest. Shorten tenure if affordable, maintain cash‑flow buffer, and download the amortization PDF to assess repayment trajectory against monthly budgets methodically.
You can validate assumptions using a trusted used car loan EMI calculator. Enter identical loan amount, APR, and tenure to reconcile outputs, then rely on your offer letter and MITC for final sanctioned figures.