Processing fee by lender
Processing fees are quoted as a percentage of the loan or a flat amount, usually plus GST. These are the figures lenders publish.
| Lender | Processing fee | Published rate | Source |
|---|---|---|---|
| Axis BankPrivate bank | Not published | Not published | axis.bank.in |
| Bajaj FinanceNBFC | Up to 2.95% of loan amount (incl. taxes) | 10% - 18.25% p.a. | bajajfinserv.in bajajfinserv.in |
| Bank of BarodaPublic sector bank | 0.50% of loan + GST (min Rs 2,500, max Rs 10,000) | Floating 10.20% - 12.95%; fixed 11.90% - 14.65% | bankofbaroda.bank.in |
| Canara BankPublic sector bank | 0.25% (min ₹1,000, max ₹5,000) + GST | Not published | canarabank.bank.in |
| CholaNBFC | 0.5% - 3.25% + sourcing fee Rs 1,000 - 2,500 | 15% - 28% p.a. | cholamandalam.com files.cholamandalam.com |
| Federal BankPrivate bank | 1% of loan (min ₹5,000, max ₹2,50,000) | 10.15% - 14.00% | federal.bank.in federal.bank.in |
| HDFC BankPrivate bank | Up to 1% of loan (min Rs 3,500, max Rs 9,000) | 9.50% - 17.00% | hdfc.bank.in |
| Hero FinCorpNBFC | Up to 4% | 11.5% - 26% p.a. | herofincorp.com herofincorp.com |
| ICICI BankPrivate bank | 2% of loan, max Rs 20,000 + GST | From 9.75%; Q1 FY27 disbursed range 9.75% - 16.90% | icici.bank.in icici.bank.in |
| IDFC FIRST BankPrivate bank | Up to 5% of loan amount (incl. GST) | From 11.99% | idfcfirst.bank.in idfcfirst.bank.in |
| IndusInd BankPrivate bank | Not published | Not published | indusind.bank.in |
| Mahindra FinanceNBFC | Up to 2% of sanction amount | 8% - 25% p.a. | mahindrafinance.com media.mahindrafinance.com |
| Punjab National BankPublic sector bank | Not published | From 9.45% floating / 10.45% fixed | pnb.bank.in pnb.bank.in |
| SBIPublic sector bank | 1.50% of loan + GST (min Rs 3,000, max Rs 10,000 + GST) | 10.45% - 15.60% | sbi.bank.in sbi.bank.in |
| Tata CapitalNBFC | Up to 2.95% of loan amount | From 10.49% p.a. | tatacapital.com tatacapital.com |
| TVS CreditNBFC | Up to 5.9% (schedule of charges) | Up to 30% p.a. | tvscredit.com tvscredit.com |
| Union Bank of IndiaPublic sector bank | Flat ₹1,000 | 11.60% - 11.70% | unionbankofindia.bank.in unionbankofindia.bank.in |
| Yes BankPrivate bank | Not published | Not published | yes.bank.in |
Checked 4 October 2026 on each lender's own website. "Not published" means the lender does not show that figure on the page we checked. We never estimate one. A starting rate is the best case, not the rate you will necessarily be offered.
Other costs to ask about
- Valuation or inspection charge: some lenders charge for the car's valuation, others include it.
- Documentation and stamp duty: loan agreement stamp duty differs by state.
- RC transfer and hypothecation endorsement: fees paid to the transport office, which vary by state, and any agent charge on top. See RC transfer and hypothecation.
- Insurance: comprehensive cover is normally required. You can usually buy it separately instead of through the lender.
- Late payment and bounce charges: check the amount and the grace period.
- Prepayment or foreclosure charge: may apply to a fixed-rate loan. See prepayment and foreclosure.
GST: where it applies
GST is charged on the lender's processing fee, as with most financial services. On the car itself, a sale between two individuals does not attract GST. A registered dealer pays GST on its margin on the sale of a used car, and that is built into the price you pay rather than shown as a separate tax line. If a dealer shows a large GST line on a used car invoice, ask how it was calculated.
How to compare the real cost
Ask each lender for a Key Fact Statement for your exact loan. It lists the interest rate, every fee, the APR and the total amount you will repay. A loan with a 1 per cent lower rate but a higher processing fee and valuation charge can cost more over a short tenure. Put the numbers side by side before you choose, and use the EMI calculator, which includes the processing fee, to see the effect.
Frequently asked questions
What is the processing fee on a used car loan?
It varies by lender and is usually a percentage of the loan or a flat amount, plus GST. See the table above for what each lender publishes.
Can I negotiate the processing fee?
Often yes. Fees are usually more flexible than the interest rate, especially if you bring a competing offer.
Is insurance compulsory for a used car loan?
Lenders normally require a valid comprehensive policy while the loan runs. You can usually buy it separately from an insurer of your choice.
Do I pay GST on a used car?
Not on a sale between two individuals. A registered dealer pays GST on its margin, which is included in the price.
KhatuLoans is not a lender and is not paid by the lenders named here to rank them. Rates, fees and eligibility change; always confirm with the lender. Read our editorial policy and how we make money.