Car Loan

Vehicle Loan

Drive your dream car today

Interest Rate8.5% - 14% p.a.
Loan AmountUp to 100% on-road price
Tenure1 - 7 years

About Car Loan

A car loan helps you finance the purchase of a new or used car. It's a secured loan where the vehicle serves as collateral. Car loans typically have lower interest rates than personal loans and offer flexible repayment tenures up to 7 years.

Key Features

Finance up to 100% of on-road price
Lower interest rates (secured loan)
Long tenure up to 7 years
New and used car financing
Quick approval process
Flexible EMI options
Balance transfer facility
Top-up loan available

Eligibility Criteria

Age21 - 65 years
Minimum Income₹20,000/month (salaried), ₹2.5 lakhs/year (self-employed)
EmploymentMinimum 1 year work experience
Credit Score700+ CIBIL score

Documents Required

PAN Card
Aadhaar Card
Last 3 months salary slips
Last 6 months bank statements
Address proof
Driving license
Proforma invoice from dealer

Fees & Charges

Processing Fee0.5% - 1% of loan amount
Prepayment ChargesUsually nil for individuals
Late Payment Fee1-2% of EMI amount
Foreclosure Charges2-3% of outstanding (if applicable)

Pros & Cons

Advantages
  • Lower interest rates than personal loans
  • 100% financing available
  • Long tenure reduces EMI burden
  • Quick approval for salaried individuals
  • Used car financing available
Disadvantages
  • Vehicle serves as collateral
  • Car depreciates while you pay
  • Insurance mandatory
  • Resale restrictions until loan clearance

Compare Car Loan from Banks

BankInterest Rate
HDFC Bank8.70% onwardsView Details
ICICI Bank8.75% onwardsView Details
SBI8.65% onwardsView Details
Axis Bank8.99% onwardsView Details

Frequently Asked Questions

Yes, many banks offer up to 100% financing of the on-road price for new cars. However, some banks may require 10-20% down payment for used cars or based on your credit profile.

A tenure of 3-5 years is ideal. Shorter tenure means higher EMI but less interest paid. Longer tenure (7 years) reduces EMI but you pay more interest overall.

Yes, balance transfer is available if you find lower interest rates. You'll need to pay processing fees and ensure at least 12 EMIs are paid. This can save significant interest.

Missing EMIs affects your credit score. After 3-6 months of default, the bank can repossess the vehicle. Always communicate with the bank if you face financial difficulties.
Car Loan
  • Interest Rate8.5% - 14% p.a.
  • Loan AmountUp to 100% on-road price
  • Tenure1 - 7 years
  • Processing Fee0.5% - 1%

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Disclaimer: Interest rates and terms are subject to change. Loan approval depends on your credit profile and lender's policies. Please verify details on the official lender website before applying.