I have a car loan running can I still hope to get loan against my car?


I have a car loan running can I still hope to get loan against my car?


Yes if you have an ongoing car loan even then you can avail the facility of opting for a loan against your car. Various banks have their own way to offer loan against car for existing car loan borrowers. For example some banks offer a higher top up loan amount if you are paying a higher EMI on your car loan. Some other banks deduct the outstanding amount on your car loan and then disburse the new loan.


What is the maximum age of a car to be eligible for a loan against car?


Banks offer loan against cars for both new cars as well as old cars. You can even avail a loan against car even if you purchased a second hand car. Banks usually do not offer a loan against cars older than 6 years although the final decision lies with your respective bank.


You can also go to your existing lender and ask for top-up loan against your existing Car loan.


Hi Nisa,

Most banks may not provide top-ups on car loan where you get more funds on your existing loan. However, some banks offer a top-up loan against your car. In this case, your existing car loan will be closed and a new loan will be issued at a fresh interest rate and terms. The interest rate might be higher than Car Loan rates but lower than Personal Loan rates. So, check with your bank if they are offering a loan of this kind and don’t forget to check the terms and conditions as well.

BB Expert


I have to first say that this issue is arising due to our own negligence.This is not only for Nisa but even I went through this problem when I bought my first car.First of all I should say that taking two loans for a single car is not a brilliant idea.You will realize this when you will have to repay them along with interest rates.I advice everyone who are opting to take personal loans to pre-plan before you go for a bank or a credit union for a loan.Go for an affordable vehicle first and then you may change it according to your preferences.But do not highly invest on a vehicle and waste your money on interests.There are banks who give 2-3 extra loans but they will check for the previous records of your payments.


Banks usually don’t give loans against cars that are more than 6 years old. If you need a Loan against Car, the bank will provide a pre-fixed value for your car and your car will be used as collateral security.
When you get a Loan against Car, you will need to hypothecate your car to the bank. This means you cannot sell the car before you pay off the loan availed against the car. There are many benefits to getting a Loan against Car.
 Lower Interest Rates. The interest rates offered by banks on a Loan against Car are lower than the rates for Personal Loans, as a Loan against Car is a secured loan.
 A Good Credit Score = Higher Loan. If you have a good financial track record and a good credit score, banks will offer you between 70-85% of the current price of your car.

The final loan amount offered by the bank depends on these factors
 The age of the car
 The vehicle model
 The overall usage
 The popularity of the model

Already Have an Ongoing Car Loan? Don’t worry. You can avail a Loan against Car even if you have an ongoing Car Loan. Various bank have different ways of offering a Loan against Car to existing Car Loan borrowers. An advantage for an existing Car Loan borrower is that your top-up loan is disbursed faster, usually in 2-4 days. However, the loan tenure for a top-up loan is limited to 3 years. Banks offer a maximum loan tenure of 60 months for all Loans against Cars. The loan tenure depends on

 Your loan amount
 Your vehicle model
 Whether you have an ongoing Car Loan or not

Looking for a Car Loan? Click here.

BB Expert


Hi Nisa,

Banks do provide loans for financing runningNew Car Loan you need to stick to their terms and condition policy for finance. You can also check the EMI, lending loan amount and your eligibility on the banks website in Car Loan column.