About Car Loan

Your desire of experiencing the ultimate dream on THOSE FOUR WHEELS has now become economical and easy. Car loans are the best way to acquire a new car as per your ambition. You can even buy a second-hand car by availing loans from banks or non-banking finance companies (NBFCs). However, there are some banks that charge a higher rate of interest on loans for second-hand cars. For getting the best deals on car loans, you can have a look at Afinoz.com. We've made it possible for you to apply for a quick approval of car loan where you only have to fill in our easy-to-follow two-minute application form online.

Features & Benefits

A car loan comes with a host of features and benefits.

Helps to buy a dream car:

A car loan helps you purchase a better car than the one available in your budget. While this might not be a rule, it holds true for a majority of car purchasers in India.

Save Income Tax:

When you buy a car with a car loan, not only you get the loan at attractive interest rates, but also save some income tax....more

Secure Environment:

When you can’t afford a car with your regular income, get a car loan. This approach is more reliable than borrowing money from pawnbrokers.

No collateral:

In a car loan, the car acts as a security against the money lent, so there is no need for collateral or any other assets to get a car loan.

Improve Credit Score:

If you make your payments timely then you could be in the process of rebuilding your credit score for a better life.

Car loan eligibility or car loan interest rates:

It can be easily assessed with Afinoz. If there is any query about car loan application,...more

Eligibility & Documents Required

Any salaried person or self-employed individual can qualify for a car loan in India. There are certain eligibility conditions which car loan borrowers must fulfil:

Salaried Individuals
Self-employed Individuals

Salaried Individuals

Documents for Salaried Individuals are as follows:-

  • Age: Anyone between 21 to 60 years old is eligible for a personal loan.
  • Credit Score: Applicant should have a good credit score.
  • Employment History: Minimum of 1-year employment with the current employer.
  • EMI: Bank expects you to pay 40% to 60 % of your salary towards EMI.

Document Required

To apply for a car loan, you will need to submit the following documents along with filled application form:

Income certificate:
KYC documents:


2 recent passport size photographs.

Interest Rate & Charges

While car loan interest rates are linked to the base rate dictated by RBI directives (like most debt instruments) the rate does differ slightly from bank to bank. Some additional aspects that may affect the interest rate on car loans include the loan amount, loan tenure, credit history and your reputation with the bank. Apply for a car loan with Afinoz and you can avail the best car loan interest rates.

Interest Rates*
Processing Charge
Axis Bank 9.05% to 11.50% Rs. 3500 to Rs.5500
Allahabad Bank 8.90% N.A
Bank of Baroda 8.90% TO 10.35% Rs. 1000 + GST
Canara Bank 8.95% to 9.50% 0.25% of the loan amount
Corporation Bank 9.55% to 10.05% 1% of the loan amount
HDFC Bank Ltd 9.65% to 17.93% 0.4% of the loan amount
IDBI Bank 9.30% N.A
Union Bank 9.20% 0.50%
Oriental Bank of Commerce 9.15% 0.50% of the loan amount
Punjab National Bank 8.90% to 9.15% Rs. Full waiver of upfront processing fees sanctioned till 31.03.2019 and disbursed up to 30.04.2019
State Bank of India 8.45% onwards 0.51% of the loan amount
UCO Bank 9.10% 1% of the loan amount
Bank of India 9.5% Rs.500 + GST
United Bank of India 9.05% onwards 0.59% of the loan amount
Syndicate Bank 9.10% 1.25%
Dena Bank 9.15% Rs. 575
Indian Overseas Bank 9.20% 0.50

Disclaimer:*Rates are subject to periodic changes. Car loan interest rates & other fees/charges are subject to regular review and can vary with each & every customer. These can differ depending on your creditworthiness & other factors. The final interest rate will be based on different criteria including the bank’s internal policies & applicable rates at the time of approval. Please note that the interest rates provided here are based on market research. To facilitate the comparison insight, a certain set of data has been reorganized/restructured/tabulated. It is advisable to recheck the same with the individual companies / organizations. This website does not take any responsibility for any sudden or uninformed changes in interest rates. Banks or Financial Institutions can contact us at info@afinoz.com for inclusions or updates.

For any further query, please visit us at afinoz.com, contact us at +91120 411 0376 or email us at info@afinoz.com


What is the maximum amount of a loan that I can avail?
If your income does not meet the credit criteria, then you may require a security/guarantor to stand surety for your loan.
Can I negotiate the loan interest rates?
Of course, you can and you definitely should. If you have a good credit score and have overcome all the eligibilities set out by the bank, then you may be entitled to lower interest rates.
What is the tenure of a car loan?
The tenure of the loan decides the amount of EMI (Equated monthly installment) that you need to pay back for your loan. Car loan is generally available for tenure of up to 7 years
Can I save money by paying off a car loan early?
Yes, you can save money as you are already halfway through with your loan and most of your payment is currently going towards the principal loan.
Are there penalties for paying off a car loan early?
You will be charged a small fee as a pre-payment penalty which will depend on the principal leftover amount.
What happens if I don't pay the EMI's on time?
Two or three missed EMI payments are allowed by most of the banks. But more than that can affect your credit score declaring you as a defaulter and the respective bank might seize your vehicle. This will definitely reduce your eligibility of getting any loans in the near future.
What is the maximum amount of a loan that I can avail?
  • Maximum amount mainly depends on two factors:
    • Price of the car
    • Your monthly in-hand salary.
  • Salaried individuals can get a car loan up to three-times their yearly salary, while self-employed professionals can borrow up to six-times their yearly income.
How can I estimate my monthly loan payments
You can find your estimated monthly loan payments by using this car loan calculator available at afinoz.com.
Should I go with the fixed rate of interest or the floating rate of interest?
Fixed interest rate means the EMI's are fixed for the car loan over the entire period of repayment of the loan. While in floating the rate of interest of the acquired loan varies with market status. Research thoroughly and do your inquiries before taking the loan as each one of them has their own benefits and drawbacks.
Can I utilize a car loan to purchase car accessories?
Most of the banks do not extend their loans to buy car accessories. But some banks, like SBI, can cover car accessories such as leather seat covers or rust painting in a loan.
How long does it take for getting the car loan sanctioned?
The loan processing begins immediately once you submit your documents on our website. Then it may take around 4 to 8 days for the loan getting sanctioned.
Can I sell my car even before the loan amount is fully paid off?
Unless and until you get a NOC (No Objection Certificate) from your bank, you cannot sell your car. You can have your NOC from the ba nk after you have paid off your entire loan.
How do I repay the loan?
If you have an account with the bank, then issue for direct monthly debit from your account. In case you don't have an account in the bank, you can draw Cheques and DD's and make payments.
Can an early car loan payment affect my credit score?
Doing so might influence positive points on your credit report. But in actuality, it has very little impact.
Can I still get a loan if I don't have an account with the bank?
You are not required to have an account with the bank to apply for a loan.
What are the lending rates for a Car Loan?
The lending rates vary on the basis of car model and loan tenure selected.
What happens when I pay off the last EMI?
After the loan is paid off entirely; the bank will then issue you a Form 35 along with a NOC certificate. Submit these to RTO to get the lender's name canceled from the RC book.

For any further query, please contact us at +91-120 411 0376, or email us at info@afinoz.com.