What a car loan looks like
Funding
80–100% of ex-showroom price; registration and insurance are extra
Tenure
Up to 7–8 years, though 5 is wiser against depreciation
Used cars
Financed at 12–16%, capped by the vehicle's age at maturity
Hypothecation
The RC carries the lender's lien until the loan is closed
Eligibility
- Salaried applicants aged 21–60 with a net income above ₹20,000 a month
- Self-employed with 2 years of business continuity and filed ITRs
- Credit score of 700 or above
- Valid driving licence and KYC documents
Documents required
- PAN, Aadhaar and address proof
- Last 3 months salary slips or 2 years ITR
- Last 6 months bank statements
- Proforma invoice from the dealer
Frequently asked questions
Rarely. Dealers earn commission on the loans they arrange. Get a sanction from your own bank first and use it as leverage on the dealer's quote.
Five years or less. Longer tenures lower the EMI but leave you owing more than the car is worth for most of the loan, which makes selling or upgrading awkward.
Car Loan calculators
Run the numbers before you speak to a lender — it is the difference between negotiating and accepting.
Know your number before you apply
Check eligibility and EMI here first. A formal application leaves a hard enquiry on your credit file — these calculators do not.