Compare new car loan offers from bank experts
A car loan is secured against the car itself, so rates are lower than for personal loans. Dealers often arrange finance for you, but the rate they offer may not be the best one available. Compare bank offers before you sign the dealer’s paperwork.
- Amount
- 5 Lacs to 1 Cr
- Tenure
- Up to 7 years
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Personal Loan at a glance
| Loan amount | 5 Lacs to 1 Cr |
|---|---|
| Tenure | Up to 7 years |
| Interest rate | Roughly 8.5% to 11% a year |
| Security | Yes, the car is pledged to the bank until you repay |
| Best for | Buyers of a new car |
Rates and terms are indicative and change often. Each bank decides the final offer based on your profile.
Who can apply
- Age usually between 21 and 65.
- Salaried or self-employed with a steady income.
- A good credit score.
- Some stability in your job or business, often 1 to 2 years.
- An income that comfortably covers the EMI.
Documents you may need
- Identity and address proof.
- Salary slips or ITR as income proof.
- Last 3 to 6 months of bank statements.
- The car quotation or proforma invoice from the dealer.
How to get a better deal
- Check what share of the price the bank finances and what your down payment must cover.
- Ask whether insurance and registration costs can be included in the loan.
- Compare processing fees and prepayment charges.
- Choose a tenure that keeps the total interest reasonable, not only the lowest EMI.
Personal Loan questions
How much will the bank finance?
Banks often finance a large share of the car’s price. You pay the rest as a down payment. Whether on-road costs are included varies by bank.
Is dealer finance cheaper?
Not always. Compare the dealer’s offer with bank offers, including processing fees and the total cost over the tenure.
Can I prepay a car loan?
Usually yes, but some banks charge a fee. Ask for the prepayment terms before you sign.
Does the loan cover insurance and registration?
Some banks include these costs and some do not. Ask each bank for the exact amount they will finance.