Monthly Payment (EMI):
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Total Interest Payable:
₹0
Total Payment:
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Check your Car Loan eligibility in just Few Steps
Basic Details
Income Details
Car Details
Offers From Top Lender
State Bank Of India
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 85% of on-road price for new car
Max Tenure : 7 years for new car
Best Rate : 9.20%-9.25% for new car
Processing Fee : 0.50% of loan amount
Max Tenure : 7 years for new car
Best Rate : 9.20%-9.25% for new car
Processing Fee : 0.50% of loan amount
Kotak Mahindra Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 90% of ex-showroom price of new car
Max Tenure : 7 years for new car
Best Rate : 11.50%-13.50% for new car
Processing Fee : As applicable by the bank
Max Tenure : 7 years for new car
Best Rate : 11.50%-13.50% for new car
Processing Fee : As applicable by the bank
HDFC Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 90%-100% of on-road price for new car
Max Tenure : 7 years for new car
Best Rate : 9.5%-13.75% for new car
Processing Fee : 2% of loan amount
Max Tenure : 7 years for new car
Best Rate : 9.5%-13.75% for new car
Processing Fee : 2% of loan amount
ICICI Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 100% of ex-showroom price of new car
Max Tenure : 7 years for new car
Best Rate : 10.75%-12.75% for new car
Processing Fee : 2% of loan amount
Max Tenure : 7 years for new car
Best Rate : 10.75%-12.75% for new car
Processing Fee : 2% of loan amount
Axis Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 85% of on-road price of new car
Max Tenure : 7 years for new car
Best Rate : 11.00%-12.00% for new car
Processing Fee : Rs. 3,500-5,500 for both new & old cars
Max Tenure : 7 years for new car
Best Rate : 11.00%-12.00% for new car
Processing Fee : Rs. 3,500-5,500 for both new & old cars
State Bank Of India
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 85% of on-road price for new car
Max Tenure : 7 years for new car
Best Rate : 9.20%-9.25% for new car
Processing Fee : 0.50% of loan amount
Kotak Mahindra Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 90% of ex-showroom price of new car
Max Tenure : 7 years for new car
Best Rate : 11.50%-13.50% for new car
Processing Fee : As applicable by the bank
HDFC Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 90%-100% of on-road price for new car
Max Tenure : 7 years for new car
Best Rate : 9.5%-13.75% for new car
Processing Fee : 2% of loan amount
ICICI Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 100% of ex-showroom price of new car
Max Tenure : 7 years for new car
Best Rate : 10.75%-12.75% for new car
Processing Fee : 2% of loan amount
Axis Bank
★ ★ ★ ★ ☆
Loan Amount : Upto Upto 85% of on-road price of new car
Max Tenure : 7 years for new car
Best Rate : 11.00%-12.00% for new car
Processing Fee : Rs. 3,500-5,500 for both new & old cars
Why Choose Us
Fast Disbursal
Get fast and hassle-free loan disbursal with MyFinFlow. Quick approvals and seamless processing to meet your financial needs promptly.
Safe & Secure
Experience safe and secure loan processing with MyFinFlow. Your data is protected with top-notch security measures for complete peace of mind.
Personalised
Enjoy personalized loan solutions tailored to your needs with MyFinFlow. Flexible options designed to fit your unique financial goals.
Tech based Easy Access to Credit
Our algorithm-based technology provides access to multiple credit offers, ease of comparison and unbiased advice
Innovation
We value innovation in order to provide cutting-edge financial solutions and improving.
Integrity
We respect the greatest standards of integrity, transparency, honesty, and ethical behavior.
User Focus
We put our clients first in all we do, and we work hard to understand their needs and deliver unique solutions with great service.
Growth
Through strategic initiatives and continual development, we are committed to fostering growth for both our clients and our company.
Benefits & Features Of Car Loans
Explore the benefits and features of car loans with MyFinFlow. Get easy financing, flexible terms, and low-interest rates to own your dream car today!
EMI Calculator
Types of Car Loans
- New Car Loan: Ideal for those looking to buy a brand-new vehicle straight from the showroom. Interest rates can vary by bank, but you can secure financing for up to 100% of the car’s on-road price.
- Used Car Loan: Perfect for buyers seeking a pre-owned vehicle, these loans typically cover 80-85% of the car's value. Enjoy competitive interest rates and flexible tenures of up to 5 years. Some lenders even offer financing for cars purchased within the last 5 years.
- Loan Against Car: If you’re in need of quick funds, you can use your old car as collateral. This type of loan allows you to unlock cash for a new purchase while leveraging your existing asset. It’s a helpful option, especially if your credit score isn’t great, giving you access to funds without selling your car.
How to Get a Car Loan Quickly
If you're eager to secure funds for that new or used car you've been eyeing, opting for a pre-approved loan can speed up the process. Here are some steps to help you get the required funds quickly:
- Check Your Credit Report: Start by reviewing your credit report to assess your credit standing. A score of 750 or above usually qualifies you for lower interest rates. Scores between 650 and 750 may face slightly higher rates, while low scores or defaults can lead to rejection.
- Pay Your Bills on Time: Maintaining a good payment history is crucial. A steady monthly income and a manageable debt-to-income (DTI) ratio will enhance your profile. If possible, clear any outstanding credit card debts. Aim to pay your bills on time, especially in the six months leading up to your loan application. Timely payments signal to lenders that you’re reliable with repayments.
- Explore Car Loan Options: Research various lenders to find car loan options that suit your needs. Compare interest rates from different banks and financing firms to ensure you get the best deal.
- Borrow as Little as Possible: Consider making a larger down payment to reduce the amount you need to borrow. A smaller loan means lower EMIs and potentially a shorter loan tenure, making repayment easier and less costly.
- Choose a Budget-Friendly Plan: It’s vital to select a loan scheme that fits your budget. Ensure that you can comfortably manage the EMI alongside any existing loans.
- Review Loan Terms Carefully: A loan with low monthly payments may come with a longer tenure, which could lead to higher overall costs. Aim for a plan with the lowest interest rate and the shortest tenure that you can manage, avoiding any traps of expensive repayment structures.
- Get Comprehensive Car Insurance: Many lenders require full-coverage insurance before approving a loan. This protects both you and the lender, ensuring that any outstanding debt can be recovered in the event of an accident.
By following these steps, you can streamline the process and increase your chances of securing a car loan quickly.
Key Components of a Car Loan
When considering a car loan, it’s essential to understand the main components involved:
- Monthly Instalments (EMI): This is the amount you pay each month, which includes both the interest and the principal repayment.
- Down Payment: This is the initial sum you pay upfront when purchasing the car. It reduces the total loan amount.
- Loan Term: This refers to the duration of the loan, indicating how long you’ll be making payments. Your EMIs will be structured based on this timeframe.
- Rate of Interest: The percentage charged by the lender on the loan amount. This is a critical factor in determining your overall repayment.
- Principal Amount: The actual amount borrowed to finance the car purchase. This figure does not include any additional fees or interest.
Understanding these components will help you make informed decisions when taking out a car loan.
Eligibility Criteria for a Car Loan
Eligibility criteria for car loans can vary from bank to bank, but here are some common requirements:
- Age: Applicants must be between 18 and 75 years old.
- Minimum Income: A minimum net monthly income of ₹20,000 is typically required.
- Employment History: Applicants should have at least one year of employment with their current employer.
- Employment Status: You must be either salaried or self-employed, working for a government organization or a private company.
Meeting these criteria is essential for securing a car loan, so be sure to check the specific requirements of your chosen lender!
Documents Required for a Car Loan
To establish your eligibility for a car loan, you'll need to submit certain documents. While requirements can vary by lender, here are the common documents typically required:
-
1. Identity Proof
- Aadhaar Card
- Passport
- Driving License
- Voter ID Card
- PAN Card
-
2. Address Proof
- Aadhaar Card
- Passport
- Driving License
- Ration Card
- Utility Bills
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3. Proof of Income
- Form 16
- Salary Slips (if salaried)
- Latest Income Tax Returns
- Bank Statements (for the last 6 months)
Car Loan vs Personal Loan
When financing a significant purchase like a car, many people consider loans as their primary option. Two of the most common choices are car loans and personal loans. Here’s a breakdown of the differences and some pros and cons for each.
- Car Loan: Specifically designed for purchasing vehicles, car loans often come with lower interest rates compared to personal loans.
- Personal Loan: This type of loan can be used for various purposes, giving you more flexibility, but typically at higher interest rates.
Pros and Cons of Car Loans
- Pros
- Lower Interest Rates: Generally more affordable than personal loans.
- Ease of Use: Designed specifically for vehicle purchases, making the process straightforward.
- Secured Loan: The car itself acts as collateral, which can make it accessible even for those with average credit scores.
- Cons
- Down Payment Required: You’ll need to pay a portion upfront.
- Hypothecation: The bank holds the car as security, meaning full ownership is granted only after the loan is repaid.
Know Your Credit Score for FREE
- Understanding your credit score is crucial when applying for loans, as it can significantly impact your interest rates and eligibility.
How to Calculate Car Loan EMI
Your Equated Monthly Installments (EMIs) will be influenced by several factors:
- Loan Amount: A higher amount results in higher EMIs.
- Interest Rate: The rate applied to your loan.
- Loan Tenure: A shorter term generally leads to higher EMIs.
- Processing Fees: These can add to the overall cost.
To find a balance between affordability and loan duration, consider using a car loan EMI calculator.
Choosing the Right Car Loan
- Compare Options: Use platforms like BankBazaar.com to compare various vehicle loan options.
- Interest Rate: Look for the best interest rate that meets your financial needs.
- Keep It Simple: Select the car before applying for the loan to ensure it fits your budget.
- Check for Hidden Fees: Always read the fine print to uncover any additional charges.
- Look for Special Offers: Be on the lookout for promotional deals that could benefit you.
- Consider Insurance Costs: Factor in the insurance premium for your car, as this will be a recurring expense.
If You Have Bad Credit: Short-Term vs. Long-Term Loans
- Experts often recommend opting for a short-term loan if you have bad credit. Although monthly payments may be higher, the interest rates for long-term loans can be significantly more costly.
- With long-term loans, you risk accumulating negative equity—when the car’s value falls below the loan amount. Additionally, longer loan terms may lead to increased repair needs over time, adding to your overall costs.
- Making an informed choice between car loans and personal loans can save you money and help you manage your finances effectively.
Frequently Asked Questions
-
What car models are financed by standard car loans in India?
Most lenders finance a wide range of vehicles, including small to medium-sized cars, commercial vehicles, SUVs, and MUVs.
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Do I need a guarantor or security when applying for a car loan?
Generally, a guarantor isn’t required. However, if your annual income falls below the expected threshold, you may need a co-applicant or guarantor.
-
What are the typical repayment tenures for
car loans?
Repayment tenures usually range from 12 to 84 months (1 to 7 years).
-
Can I get 100% funding to buy a car?
Yes, some lenders offer financing for 100% of the on-road price of the car.
-
Can I pre-pay the entire loan amount? What
are the conditions?
Yes, you can prepay your car loan to save on future interest payments, but most banks allow prepayment only after six months of the loan tenure.
-
What credit score do I need to buy a car?
A score above 750 is ideal, but you can still apply if your score is above 600.
-
Will my credit score affect the interest
rate?
Yes, lenders often offer lower interest rates to applicants with higher credit scores.
-
What is the minimum credit score needed for a
car loan?
Lenders typically look for a credit score of at least 750, though some may approve loans for lower scores at higher interest rates.
-
Should I take a car loan from a dealership or
a bank?
It's wise to explore all options and compare benefits before choosing. Select the lender—whether a bank or a dealership—that offers the best interest rates and terms for your needs.
-
Do banks finance used cars?
Yes, many banks, including SBI and HDFC Bank, provide loans for used cars.
-
What do lenders look for when I apply for a
car loan?
Lenders primarily consider your credit score, employment status, residence stability, income, and debt-to-income ratio.
-
What is the lowest EMI I can expect for a
car loan?
Your EMI will depend on the interest rate, loan amount, and chosen repayment tenure. You can use an EMI calculator, like the one on BankBazaar, to find this information.
-
How much down payment do I need to make to
buy a car?
A higher down payment reduces the loan amount, which may result in lower interest rates from lenders.
-
Does HDFC Bank charge documentation fees for
a car loan?
Yes, HDFC Bank charges a documentation fee of ₹650 for car loans.
-
Can I pre-close the car loan from HDFC Bank?
Yes, you can pre-close your car loan with HDFC Bank.
-
If I’m eligible for a pre-approved car loan,
do I need to submit KYC documents?
No, if you qualify for a pre-approved car loan, you won’t need to submit any KYC documents.