Drive Home Your Dream Car with Loan Bazaar’s Car Loan

What is a Car Loan?

A car loan is a form of vehicle loan offered by banks and financial institutions to help individuals purchase a new or used car. Rather than paying the entire amount upfront, the buyer can borrow funds and repay them in fixed monthly instalments, known as EMIs (Equated Monthly Instalments). The purchased vehicle serves as collateral until the loan is fully repaid.

Car loans have become a popular financing option in India, offering a convenient way to own a personal vehicle while maintaining financial liquidity. Whether you’re buying your first car or upgrading to a new model, applying for a car loan in India can make the process affordable and straightforward.

Key Highlights:

• Finance up to 100% of the vehicle’s on-road price, depending on eligibility and lender terms.
• Flexible loan tenure options ranging from 12 to 84 months.
• Attractive and competitive new car loan interest rates tailored to your credit profile.
• Fast processing with minimal paperwork and easy car loan application process.
• Pre-approved offers for existing customers or those with a strong credit history.
• Interest on a car loan used for business purposes is tax-deductible under Section 36(1)(iii) of the Income Tax Act.
• The vehicle remains hypothecated to the lender until the loan is fully repaid.

What are the types of Car Loans?

To cater to different customer needs and vehicle purchase preferences, lenders in the car loan India market offer several types of vehicle loans:

Eligibility criteria for a Car loan:

To qualify for a car loan, most lenders in India typically require:

• Age: 21 to 60 years (up to 65 for self-employed).
• Income: Salaried – Minimum ₹20,000 per month.
  Self-Employed – ₹2 to 3 lakhs annual income.
• Work Experience: 1 year for salaried, 2 years for business owners.
• Credit Score: 700 or above preferred.
• Residency: Must be an Indian resident (NRIs need a co-applicant).

What is the process of securing a Car loan?

The process of getting a Car loan includes the following steps:

• 
  Step 1: Connect with Loan Bazaar
  Get in touch with our dedicated Loan Bazaar Relationship Manager to start your car loan journey. We’ll help assess your needs and match you with the right lender.
  

• 
  Step 2: Check Eligibility
  Our team will evaluate your age, income, credit score, employment status, and other key criteria to determine your eligibility across multiple banks and NBFCs.
  

• 
  Step 3: Compare Loan Offers
  We provide side-by-side comparisons of interest rates, processing fees, and EMI options from our partnered financial institutions to help you choose the best deal.
  

• 
  Step 4: Submit Your Documents
  Share basic documents like ID proof, income proof, and your car quotation—we handle the submission and coordination with the lender.
  

• 
  Step 5: Document Verification by Lender
  The bank/NBFC reviews your documents and credit profile. Loan Bazaar follows up and keeps you updated throughout this stage.
  

• 
  Step 6: Get Loan Approval
  Once approved, you’ll receive a loan sanction letter. Pre-approved profiles may receive faster approvals—sometimes on the same day!
  

• 
  Step 7: Loan Disbursal & Car Delivery
  The loan amount is disbursed directly to the car dealer, and you can take home your new vehicle with peace of mind.