What it is
A car loan is secured by the car itself, so rates sit between a home loan and a personal loan. New cars are funded up to a high share of the on-road price; used cars are funded on their valuation. Dealer tie-ups mean the lender matters as much as the car.
Who it suits
- Salaried and self-employed buyers of new cars
- Buyers of used cars with a verified valuation
- Anyone who wants to keep savings intact rather than pay in full
Which lenders fit
Typical appetite by lender type for a well-documented profile. Your own answers can change this — run a Match Check.
Strong fit
Private banks price well for strong scores and documented income, and move quickly.
Possible
Public sector banks often have the lowest rates, with stricter paperwork and slower turnaround.
Possible
NBFCs accept a wider range of profiles, including the self-employed, usually at a higher rate.
Possible
Small finance banks lend to thinner files and smaller towns, usually at a higher rate.
Typical eligibility
Salaried
- Age 21 to 60
- Net monthly income typically ₹20,000 or more
Self-employed
- Business running for at least 2 years with ITR support
Each lender sets its own criteria. These are common starting points, not guarantees.
Documents to keep ready
- PAN and Aadhaar
- Income proof: salary slips or ITR
- Last 3–6 months' bank statements
- Proforma invoice from the dealer, or valuation report for a used car
You share documents only with your advisor or the lender, never on this website.
Indicative rates
| Lender type | Rate range | Processing fee | Max tenure | As of |
|---|---|---|---|---|
| Public sector banks sample | 8.70 – 10.50 % | Flat fee | 7 yrs | 19 Sep 2026 |
| Private banks sample | 8.75 – 11.50 % | Flat fee | 7 yrs | 19 Sep 2026 |
| Small finance banks sample | 11.00 – 16.00 % | 1.00–2.00 % | 5 yrs | 19 Sep 2026 |
Questions
Can I get 100 % funding?
Some lenders fund close to the full on-road price for select profiles. Most expect a down payment of 10–20 %.
Is a used-car loan more expensive?
Usually yes, because the car's value is harder to judge and it depreciates faster.