Second-Hand Car Loan in Bangladesh || ব্যবহৃত গাড়ি কেনার জন্য ব্যাংক ঋণ

In Bangladesh, it is possible to get a second-hand car loan from various banks and financial institutions. However, the terms and conditions may vary depending on the lender.

Second-Hand Car Loan

Here are some things to keep in mind when looking for a second-hand car loan in Bangladesh:

Interest Rates: The interest rates for a second-hand car loan in Bangladesh can vary from lender to lender. It’s important to compare the interest rates and other charges before choosing a lender.

Loan Tenure: The loan tenure for a second-hand car loan in Bangladesh can vary from 1 to 7 years, depending on the lender.

Down Payment: Many lenders require a down payment of at least 20% of the car’s value for a second-hand car loan in Bangladesh.

Car Age: The age of the car can affect the loan amount and the interest rate. Some lenders may only provide loans for cars that are less than 5 years old.

Credit Score: A good credit score can help you get a better interest rate and loan terms. So, it’s essential to maintain a good credit score before applying for a second-hand car loan in Bangladesh.

It’s important to do thorough research and compare different lenders before choosing a second-hand car loan in Bangladesh. You can also consult with a financial advisor to help you make an informed decision.

Second-hand car loan benefits

Getting a second-hand car loan in Bangladesh can offer several benefits, such as:

Affordable Price: Second-hand cars are generally less expensive than new cars, which means that the loan amount required is also lower. This can make the monthly payments more affordable.

Quick Loan Approval: Since the loan amount for a second-hand car is usually lower than for a new car, the loan approval process is often faster.

Lower Interest Rates: The interest rates for a second-hand car loan are often lower than those for a new car loan, which means that you may pay less in interest charges over the loan term.

More Flexibility: Lenders may offer more flexible terms for a second-hand car loan, such as longer loan tenures, which can make it easier to manage your monthly payments.

Better Resale Value: Second-hand cars have already gone through their initial depreciation, which means that they may retain their value better than new cars. This can be an advantage if you plan to sell the car in the future.

These are just a few of the benefits of getting a second-hand car loan in Bangladesh. It’s important to do your research and compare different lenders to find the best loan terms for your specific needs and budget.

City Bank Second Hand in Bangladesh

City Bank Limited is a leading private commercial bank in Bangladesh, established in 1983. It provides a wide range of financial products and services to individuals, small and medium-sized enterprises, and corporate clients. The bank offers various services such as personal banking, business banking, digital banking, international trade, treasury, and investment banking. Some of the key features of City Bank in Bangladesh include:

Network: City Bank has a network of more than 132 branches and 420 ATMs, RATM, & CDM across Bangladesh, providing banking services to customers in both urban and rural areas.

Technology: City Bank has invested heavily in technology and offers digital banking services such as internet banking, mobile banking, and SMS banking.

Customer Service: The bank is committed to providing excellent customer service and has won several awards for its customer service initiatives.

Products and Services: City Bank offers a wide range of financial products and services, including deposit accounts, loans, credit cards, debit cards, remittance services, and insurance.

Corporate Social Responsibility: City Bank is committed to social responsibility and has undertaken several initiatives in the areas of education, healthcare, and environmental sustainability.

Overall, City Bank in Bangladesh is a well-established and reliable bank, offering a range of services to meet the financial needs of individuals and businesses.

What is a second-hand car Loan?

A second-hand car loan is a type of loan that is specifically designed for purchasing a used car. It allows individuals to finance the purchase of a second-hand car through a bank or financial institution. Second-hand car loans are generally more affordable than new car loans as the value of the car is lower. The loan amount, interest rate, and loan tenure for a second-hand car loan may vary depending on the lender’s terms and conditions. Generally, lenders require a down payment for the loan, and borrowers may need to provide documentation such as proof of income, address, and identity

Loan Features

  • Loan amount ranging from BDT 4 lac to BDT 40 lac
  • Financing up to 50% of used vehicle price
  • Up to 100% financing for loan against cash security
  • Loan tenure is 12 months to 72 months. Loan maturity must be 10 years from the date of manufacturing
  • No hidden charges
  • Competitive interest rate

Charges & Fees

  • Penal Interest: 2% per month on the overdue amount
  • Processing fee: 0.50% but not exceeding Tk. 15,000
  • Partial / Final prepayment: 0.50% on prepayment amount.

Loan Eligibility

Eligible Age: 22 to 65 years


  • Salaried Executive: Minimum 1-year experience including 6 months with current employer
  • Professionals such as doctors, engineers, freelancers, and others with a minimum 1-year of experience.
  • Businessman: Minimum 2-years involvement in the same business
  • Income Criteria: Minimum Income: Salaried Segment – BDT 40,000, All other Segments – BDT 60,000

Required Documents to apply for City Bank Second Hand Loan

Common Documents for all Segments

  • Car Valuation Request
  • 4 copies of lab print Passport size photograph of the Loan applicant
  • Photocopy of NID/Smart card of Loan applicant
  • Visiting Card/Business Card/Office ID copy of loan applicant
  • Latest E-TIN of customer
  • Latest Utility bill copy
  • Sanction letter and repayment statement of existing loans (if any)

Documents for Salaried Person

  • Last 6 month’s Bank Statement
  • Letter of Introduction (LOI)/Salary Certificate/Pay Slip
  • Documents for Self-Employed/Professionals like Doctors, Engineers, Accountants,
  • Architects etc.
  • Last 6 month’s Bank Statement
  • Self-income declaration on professional Pad, Letterhead
  • Latest Professional Qualification/ Membership Certificate

Documents for Businessman

  • Last 1-year Bank Statement
  • Updated Trade License
  • Registered Partnership Deed for Partnership concern
  • MOA & Certificate of Incorporation for limited company
  • Schedule – X, XII, and Board resolution for the limited company (if Applicable)
  • Company TIN, BIN, VAT certificate, and Business card of the company (if applicable)

Documents for Landlord/Landlady

  • Last 6 month’s Bank Statement with rental reflection
  • Ownership Document of Rented Property
  • Rental Deed
  • Mutation copy (if applicable)

Frequently Asked Questions (FAQs) for second-hand car Loan

What are the criteria for getting a second-hand car Loan?

To avail second-hand car Loan, one should fulfill the following criteria:

• Bangladeshi citizen

• Salaried Person

• Total service length Minimum 1 year after confirmation

What are the minimum and maximum loan limits of City Bank Second Hand Car Loan?

  • Minimum- 50 thousand and maximum – 20 Lac

What is the minimum and maximum loan tenure of a City Bank Second Hand Car Loan?

  • Minimum-12 Months and maximum – 72 months.

What is the Debt-Equity ratio for the loan?

  • 50:50

Is there any overdue interest rate?

  • Yes. @2% additional interest per month on overdue amount.

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