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Car Loan

Decided to buy a car? We at LoanBazaarOnline help you to compare and choose the best interest rate to drive home the car of your dream.

Any financing provided to purchase a new car or an used car is termed as Car loan. Car loan is also known as Vehicle loan or Car Finance or an Auto loan. The interest rate for an auto loan varies highly based on various factors like credit score of the borrower, make, model and age of the car.

Loan for a used car or second hand car has a higher rate of interest as compared to new car loans. The car loan has a maximum tenure of 7 years for a new car and in case of used car, the tenure is reduced to the extent of the age of the car.

Apply now or Call us today to know more about Car loans and prevailing interest rates. Our expert consultants are always at your doorstep to offer the most lucrative and cost effective solutions in Car loans.


  • Age above 21 years
  • Salaried /Self employed / Professional with a regular source of income
  • Must be an Indian resident
  • Have a good CIBIL score
  • Spouse income can also be considered as Co-applicant to enhance the eligibility


  • Identity Proof
  • Residence Proof
  • Last 6 months bank statement
  • Passport Size photographs
  • Last 3 months pay slip and form 16 (for salaried) / IT return form (for self-employed)


  • Financing for New cars and Used cars.
  • Wide range of products to choose.
  • Compare interest rates and features of various banks or FIs
  • Help to calculate your EMI and Eligibility.
  • Expert consultants advice on your needs and suitability.
  • No extra charges, fees or commission.
  • Simple procedure with minimal documentation and quick processing.


1.How do I get an Auto Loan?

First, shop around for all the various finance schemes on Auto Loans available in the market • by applying on You can then decide from margin money schemes, advance EMI's schemes and deposit payment schemes.

2.How much loan can I get?

The amount of the loan depends upon:

  • The cost of the vehicle.
  • The type (standard/premium).
  • The percentage financing offered.

If you are buying a new car, you can get up to 90% financing but some banks have a limit beyond which they do not offer loans. Also different banks have different terms for different models (standard/premium, new/old) The percentage of finance the banks give on cars is also determined on the basis of second­hand market value of that particular car. This is for cases, if default by any chance, the banks can get a higher resale value for the car. This makes the banks comfy enough to give higher percentage finance.

3.How long does it take to process the loan?

If all the required documents are in order, your process moves fast. You need to submit requisite documents like salary slip, tax returns, proof of residence, bank statements etc. The processing will take between 2 to 7 days.

4.Is it necessary to have an account with the bank from which you take a loan?

There is no such compulsion for you to have an account with the bank. Normally banks have no problem in giving auto loans to people who do not have an account with them. However there may be certain privileges you may enjoy with having an account of the same bank you take a loan from.

5.Is it better to go to my current bank for loans?

Well if you have a good repayment record for an earlier transaction, YES! You are also most likely to get a lower lending rate and your process is sure to move faster. However, do check out some other offers from other banks as well, before taking a final decision.• And this is where can assist in getting you multiple quotes from various banks really fast.

6.Do I need to give collateral to get a loan?

No, you don't need to give collateral. But you will have to hypothecate the car in the banks name and an endorsement made in the Registration Certificate (RC) book of the vehicle.

7.Is credit profile important?

To banks, your credit profile is the most important factor they will consider before funding you. Your credit profile tells banks if one is able to and intend to pay back the loan.

8.What are the detailed components of my credit profile?

The components of credit profile are age, profession/occupation, income/financials, previous credit history etc.

9.What can I do if my credit profile does not match the banks requirements?

If your credit profile does not match the banks requirement you can reinforce it by bringing in a co- applicant/guarantor who would be able to match the requirement.

10.Can I get auto loan without the submission of income documents?

Yes you can, under the No Income Proof scheme offered by some banks.

11.Can I increase the amount of loan that I can take and how?

Yes, you can.You can increase the amount of loan sanctioned by clubbing your spouse's income. The spouse then becomes the co­applicant.

12.Is EMI a proper measure for comparing the deals of various players?

Not really. There are other charges like processing fees, advance EMI's, other up­front payments (stamp charges), registration charges, insurance which need to be factored in before comparing the various deals

13.How do I pay the Equated Monthly Installment (EMI)?

Normally, all banks ask for a Post Dated Cheque (PDC) for the entire repayment period or at least for the first two years. Sometimes, the installment is directly taken from your salary if there is an agreement between the bank and your employer

14.How long can I get loan tenure for?

Usually auto loan tenure is available from 1 to 5 years. However some banks with schemes, offer loans tenure for 7 years. The tenure also depends on the type of car you wish to purchase. If it is a super­premium car the tenure is restricted to 3 years only. Also know that, higher the tenure, lower is the EMI. But the total interest outflow is higher.

15.What is an Exchange Scheme?

Some dealers may offer you an exchange scheme whereby your existing car can be upgraded to a new one. The dealer will purchase your car at a price depending on the model, year and the condition of the car. The value of your old car is then adjusted against the purchase price of the new car. You could also get the balance amount financed

16.What happens if the car meets with an accident?

In the event of an accident, the first step is to inform the insurance company. The company then sends a surveyor to assess the extent of damages to the car. Your claim is then processed and paid directly to the banks, unless you have taken an NOC from the banks, in which case the payment will be made by the insurance company in your favor. The bank normally gives you an NOC if you are regular in your payments. In case of a complete loss, the bank would receive the payment directly from the insurance company.

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