Perfect for buying a brand-new car directly from the showroom, new car loans are offered by banks at interest rates of 9-14% p.a. with loan tenures ranging from 1 to 7 years. These loans cover most car makes and models.

For purchasing pre-owned vehicles, banks and NBFCs provide used car loans covering up to 80-85% of the car’s price. Interest rates range from 12-18% p.a., and loan tenures are between 1 to 5 years. Eligible cars are typically under 5 years old or up to 10 years old at loan maturity.

If you need funds urgently, you can use your old car as collateral for a loan. Banks offer loans against cars up to Rs.10 lakh or 100% of the car’s value at interest rates of 14-15% p.a., with tenures of 1 to 3 years. This option is useful if you have a poor credit score and need financial support.

• Identity Proof – Aadhaar card, PAN card, Voter ID or Passport.
• Age Proof – Birth certificate or PAN card
• Address Proof – Utility bills, Aadhaar card or passport.
• Income Proof – Salary slips or Form 16.
• Passport sized coloured photograph

• Be an Indian citizen.
• Possess a valid Aadhaar card and PAN card.
• Be between 18 and 65 years old.
• Be either a salaried employee or self-employed.
• Have a stable income.
• Maintain a good credit score, with a minimum of 650, to qualify for low-interest rates.