Don’t wait to buy your favorite car

Car Loan

Car Loan

You deserve your dream car
that makes you a star

Nowadays, owning a car has become a basic necessity for middle-class families in India. However, most of the people can’t afford a car with their regular monthly income. In such a situation, a car loan plays an important role to bridge the gap between the cost of the car and the down payment they can afford to pay. The loan amount needs to be repaid monthly in the form of EMIs. Most of the lenders offer car loans for both new as well as pre-owned cars.

Car Loan India

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. 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 carSave Income TaxSecure EnvironmentNo collateralImprove Credit ScoreCar loan eligibility or car loan interest rates

Eligibility & Document 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 car 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.


Car Loan Interest Rates*

Processing Fees

Axis Bank9.05% to 11.50%Rs. 3500 to Rs.5500
Allahabad Bank8.90%N.A
Bank of Baroda8.90% TO 10.35%Rs. 1000 + GST
Canara Bank8.95% to 9.50%0.25% of the loan amount
Corporation Bank9.55% to 10.05%1% of the loan amount
HDFC Bank Ltd9.65% to 17.93%0.4% of the loan amount
IDBI Bank 9.30%N.A
Union Bank9.20%0.50%
IDBI Bank 9.30%N.A
Oriental Bank of Commerce9.15%0.50% of the loan amount
Punjab National Bank8.90% 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 India8.45% onwards0.51% of the loan amount
UCO Bank9.10%1% of the loan amount
Bank of India9.5%Rs.500 + GST
United Bank of India9.05% onwards0.59% of the loan amount
Syndicate Bank9.10%1.25%
Dena Bank9.15%Rs. 575
Indian Overseas Bank9.20%0.50


Q. What is the maximum amount of a loan that I can avail?
Q. Can I negotiate the loan interest rates?
Q. What is the tenure of a car loan?
Q. Can I save money by paying off a car loan early?
Q. Are there penalties for paying off a car loan early?
Q. What happens if I don't pay the EMI's on time?
Q. What is the maximum amount of a loan that I can avail?
Q. How can I estimate my monthly loan payments
Q. Should I go with the fixed rate of interest or the floating rate of interest?
Q. Can I utilize a car loan to purchase car accessories?
Q. How long does it take for getting the car loan sanctioned?
Q. Can I sell my car even before the loan amount is fully paid off?
Q. How do I repay the loan?
Q. Can an early car loan payment affect my credit score?
Q. Can I still get a loan if I don't have an account with the bank?
Q. What are the lending rates for a Car Loan?
Q. What happens when I pay off the last EMI?