Car Loan

B
Buddy Loan
6 min read

Owning your dream car is much easier with a car loan. Meet your comfort zone with the car of your choice with the help of the most flexible loan.

Car loans involve a down payment, followed by monthly instalments. With Buddy Loan, get car loan rates that are reasonable to you without having to pay the full price at one go. Making car ownership more accessible and affordable.

Personal Loan

Quick Approval in 24 Hours

Starting at 11.99% p.a.
No hidden fees
Up to ₹ 50 Lakhs
Instant approval
Apply Now →

💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes

Best Car Loans from Banks

Car loan interest rates can vary based on different factors and different banks. We curated a set of competitive interest rates that are available for you. G to the bank-wise interest rates, now.

BankInterest Rate (p.a.)
State Bank of India(SBI)8.60 p.a. onwards
HDFC Bank7.90% – 11.01% p.a.
ICICI Bank10.00% onwards (12-35 months)
Axis Bank8.95% – 13.80% p.a.
RBL Bank12% – 14% p.a.
Canara Bank9.15% p.a. onwards
Federal Bank11.00% p.a. onwards
Bank of Baroda8.85% p.a. onwards

The above mentioned rates are subject to change with the finance market and differ marginally with the respect to the individual banks

Personal Loan

Quick Approval in 24 Hours

Starting at 11.99% p.a.
No hidden fees
Up to ₹ 50 Lakhs
Instant approval
Apply Now →

💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes

Car Loan Interest Rates, Fees & Charges

Car loan fees and charges are important considerations to settle. They include processing fees, documentation charges, prepayment penalties, and late payment fees. They prove to be of great benefit as it is crucial for effective budgeting.

The rates below provided are a compilation of the various charges and rates that are applicable while applying for a car loan.

FeaturesNew CarUsed Car
Interest rates8.90% p.a. onwards9.40% p.a. onwards
Loan AmountUp to 100% of the ex-showroom priceUp to 80% of the car’s valuation
Loan Processing FeesStarting from 0.20% of the loan amountUp to 2% of the loan amount
Loan TenureUp to 7 yearsUp to 5 years

Other Charges

Prepayment/Foreclosure Charges

0.5% – 5% on the outstanding principal or interest for the remaining term of the loan, whichever is lower.

Car Loan EMI Calculator

A car loan EMI calculator helps you estimate monthly repayment & gain clarity on the financial hedges. Plan your car loan interest rate, and determine their eligibility and affordability for the loan.

Input the loan amount, interest rate, and loan tenure, the calculator provides an estimate of the Equated Monthly Instalment (EMI) that needs to be paid towards the car loan.

EMI Calculator

₹
10K1.5Cr
%
6%40%
1 Year40 Years
Loan Amount
Interest Payable
Monthly EMI
₹0
Principal Loan Amount
₹10,00,000
Total Interest Payable
₹0
Tenure
20 Years
Interest Rate
10.5% p.a.
Total Amount Payable
₹0

 

Car Loan Eligibility Criteria

It is important to check your Car loan eligibility factor to qualify before opting for a car loan. Check your eligibility here,

CriteriaRequirement
Type of carUsed Car loan/ New car loan
ResidenceUrban/Rural/Semi-rural
Age18 yrs – 75 yrs
Employment typeSalaried/Self
SalaryDepends on the bank

Documents Required to Apply for Car Loan

To apply for a car loan, provide some basic documents as proof of identity and income. Hence, here’s a list of car loan documents required:

  • Identity Proof: Passport, driver’s license, Aadhaar card, Voter ID
  • Address Proof: Utility bill (electricity, water, or gas), bank statement
  • Income Proof: Recent payslips, Income Tax Returns (IT returns)
  • Photographs: Recent passport-sized photographs

Personal Loan

Quick Approval in 24 Hours

Starting at 11.99% p.a.
No hidden fees
Up to ₹ 50 Lakhs
Instant approval
Apply Now →

💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes

Improve Chances of Getting Car Loan

Besides meeting basic eligibility getting a car loan requires specific guidelines for approval.

Do’sDon’ts
Maintain a good credit scoreDon’t miss or make late payments on existing debts.
Pay off existing debts and reduce outstanding balances.Don’t apply for multiple loans simultaneously.
Save for a down payment.Don’t exceed your budget for the car purchase.
Research and compare lenders and loan terms.Don’t provide false information on your loan application.
Keep a stable employment history.Don’t change jobs frequently before applying.
Gather necessary documents in advance.Don’t ignore your credit report and credit history.
Provide accurate and complete information.Don’t co-sign a loan for someone with a poor credit history.

Personal Loans For Car Vs. Car Loans

Personal loans for purchasing a car and car loans serve differently. It is subjective to your purpose of availing a loan. Since personal loans are unsecured loans it is possible to to buy a car, while on the other hand car loans specifically cater to purchasing a vehicle. But there are other criteria that make them different, here are some of them-

AspectPersonal Loans for Car PurchaseCar Loans
PurposeCan be used for various personal expenses.Specifically designed for purchasing a vehicle.
CollateralTypically unsecured loans.The car itself acts as collateral.
Loan AmountGenerally lower loan amounts.Higher loan amounts depending on the vehicle’s value.
Interest RatesInterest rates may be higher.Lower interest rates due to the collateral.
Loan TermLoan terms can vary from a few months to years.Loan terms are usually shorter, often up to 7 years.
RepaymentFixed monthly instalments.Fixed monthly instalments.
FlexibilityFunds can be used for various car re-purposes.Funds are dedicated to car purchase only.
EligibilityBased on credit history, income, and other factors.Creditworthiness, income, and vehicle details are considered.
OwnershipNo impact on ownership of assets.Ownership of the car upon successful loan repayment.

Car Loan Features & Benefits

Car loans offer flexible amounts and tenure options, competitive rates based on credit history, quick approval, and financing for various car models, with convenient repayment through EMIs.

[features]

Steps to Apply for Car Loan

Here’s the step-by-step process that you can follow to apply for a car loan on Buddy Loan:

  • Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
  • Step 2: Open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.
  • Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
  • Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
  • Step 5: Enter your work details (Including company name, years of service and Designation)
  • Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
  • Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.

Car Loan Foreclosure

Car loan foreclosure allows early repayment of the outstanding amount, saving on interest and eliminating debt.

  • Lenders may charge foreclosure fees, and a minimum lock-in period could apply.
  • Contact the lender for specific requirements and documentation.
  • Foreclosure can be done through a lump sum or increased monthly EMI.
  • After foreclosure, the vehicle’s hypothecation is released, establishing full ownership.
  • Car loan foreclosure charges may be different depending on the bank.

Car Loan Refinancing

Car loan refinancing replaces an existing loan with a new one from a different lender, offering improved terms, lower rates, and potential savings on payments and interest. Evaluate options, compare lenders, and consider fees for a beneficial refinancing decision.

Here are some reasons to refinance car loan

  • Lower Interest Rates
  • Monthly Payment Reduction
  • Flexible Loan Terms
  • Cash-out Option
  • Multiple Lenders

Personal Loan

Quick Approval in 24 Hours

Starting at 11.99% p.a.
No hidden fees
Up to ₹ 50 Lakhs
Instant approval
Apply Now →

💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes

Frequently Asked Questions

Find answers to common questions about this topic

Car loan is a type of financing that helps you purchase a vehicle by borrowing funds from a lender and repaying the loan over a specified period with interest.
Car loans can be used to finance a wide range of vehicles, including new cars, used cars, luxury cars, SUVs, and other passenger vehicles, subject to the eligibility criteria set by the lenders.
Secured car loan requires collateral, such as the vehicle itself, which can be seized by the lender in case of default, while an unsecured car loan does not require collateral but typically comes with higher interest rates.
To apply for a car loan, you can typically visit a bank or financial institution, submit the required documents, including proof of income, identification, and vehicle details, and complete the application process, which may involve a credit check and evaluation of your eligibility.
When applying for a car loan, you typically need to provide documents such as proof of identity, address, income, employment details, bank statements, vehicle-related documents, and in some cases, a copy of your driving licence.
The minimum credit score required to get a car loan varies among lenders, but generally, a credit score of 650 or higher is considered favourable for obtaining competitive interest rates and loan terms.
The maximum loan amount for a car loan depends on various factors such as the lender's policies, your creditworthiness, income, and the value of the vehicle, but it is typically capped at a certain percentage of the car's on-road price or its appraised value.
The time it takes to get approved for a car loan can vary depending on factors such as the lender's processes, documentation requirements, and your creditworthiness, but it typically ranges from a few hours to a few days.
The typical interest rate for a car loan in India ranges from around 7% to 15%, but it can vary depending on factors such as the lender, loan amount, loan term, your creditworthiness, and prevailing market conditions.
The repayment period for a car loan usually ranges from 3 years to 7 years, depending on the lender's terms and conditions and the borrower's preferences.
Yes, it is generally possible to pay off your car loan early, but it is advisable to check with your lender regarding any prepayment penalties or charges that may apply.
If you default on your car loan, the lender may take legal action, repossess the vehicle, and sell it to recover the outstanding loan amount, potentially impacting your credit score and making it more difficult to secure loans in the future.
Yes, you can refinance your car loan by obtaining a new loan with better terms, such as lower interest rates or extended loan repayment period, to replace your existing car loan.
Dealer loan is provided by the car dealership directly, while a bank loan is obtained from a financial institution, with the key difference being the source of financing.
You can use a car loan emi calculator to calculate your monthly payment for a car loan.
The highest amount of a new car loan that you can avail depends on various factors such as the lender's policies, your creditworthiness, income, and the value of the car.
Display of trademarks, tradenames, logos, and other subject matters of Intellectual Property displayed on this website belongs to their respective intellectual property owners & is not owned by Bvalue Services Pvt. Ltd. Display of such Intellectual Property and related product information does not imply, Bvalue Services Pvt. Ltd company’s partnership with the owner of the Intellectual Property or proprietor of such products. Please read the Terms & Conditions carefully as deemed & proceed at your discretion.