A car loan is a financing solution offered by banks and NBFCs to make buying a car more convenient and affordable. Whether you are planning to purchase a brand-new car or a used one, lenders provide flexible loan amounts, competitive interest rates, and convenient repayment tenures to suit your needs. With minimal documentation and quick processing, car loans ensure that your dream vehicle is within easy reach. Wishmyloan.com helps applicants explore and compare multiple car loan offers from top lenders, making it simple to choose and apply online for the option that best matches their budget and eligibility.
Car loan interest rates vary across lenders and depend on multiple factors such as the applicant’s credit score, income, loan amount, repayment tenure, and whether the vehicle is new or pre-owned. The rates may also be influenced by the applicant’s relationship with the lender and the type of loan scheme selected. The interest rates offered by leading car loan providers are outlined below.
Comparison Table of Car Loan Interest Rates offered by wishmyloan.com partners
| Bank/NBFC | Interest Rate |
|---|---|
| HDFC Bank | 8.75% – 13.25% p.a. |
| ICICI Bank | 8.90% – 12.75% p.a. |
| Axis Bank | 9.00% – 14.50% p.a. |
| State Bank of India (SBI) | 8.80% – 9.80% p.a. |
| Punjab National Bank (PNB) | 8.75% – 9.70% p.a. |
| Bank of Baroda | 8.85% – 10.25% p.a. |
| Kotak Mahindra Bank | 9.10% – 14.50% p.a. |
| IDFC FIRST Bank | 9.00% – 13.75% p.a. |
| Tata Capital | 9.25% – 15.00% p.a. |
| Mahindra Finance | 10.00% – 15.50% p.a. |
| Hero FinCorp | 10.25% – 16.00% p.a. |
Note:
Car Loan Interest Rates are updated as of February 2024 and may vary based on credit profile, vehicle type, and lender policies.
Age:
Minimum 21 years at the time of loan application and up to 65 years at loan maturity (may vary across lenders)
Employment Type:
Salaried individuals, self-employed professionals, and business owners
Minimum Income:
Rs 10,000 – Rs 25,000 per month (depending on the lender and city of residence)
Work Experience:
Salaried: Minimum 1 year of total work experience with at least 6 months in the current job
Self-employed: Minimum 2 years of business continuity
Credit Score:
700 or above (some lenders may offer car loans to applicants with lower credit scores at higher interest rates)
Eligible Applicants:
Salaried employees, self-employed professionals, self-employed non-professionals, partnership firms, companies, and existing bank customers
New Car Loan:
Lenders provide loans for the purchase of brand-new cars directly from authorized dealerships. These loans usually cover up to 90–100% of the on-road price of the vehicle.
Used Car Loan:
Also known as pre-owned car loans, these are offered for purchasing second-hand or used vehicles. Loan amount and tenure depend on the age and condition of the car.
Loan Against Car:
Borrowers can avail funds by pledging their existing car as collateral. The loan amount depends on the current market value of the car.
Car Loan Balance Transfer:
This facility allows borrowers to transfer their existing car loan from one lender to another offering lower interest rates or better terms, reducing overall repayment burden.
Top-up Car Loan:
Existing car loan borrowers can apply for an additional loan amount over and above their current car loan to meet extra financial needs.
New Car Loan:
New Car Loans are designed for individuals who want to purchase brand-new vehicles. Lenders generally finance up to 90–100% of the on-road price of the car, with flexible repayment tenure and competitive interest rates.
Used Car Loan:
Used Car Loans, also known as pre-owned car loans, help applicants purchase second-hand vehicles. The loan amount depends on the current valuation, model, and age of the car, usually covering 70–90% of its value.
Loan Against Car:
This facility allows borrowers to pledge their existing car as collateral to raise funds. The loan value depends on the present market worth of the vehicle, and the car continues to remain in the borrower’s possession during repayment.
New Car Loan:
Lenders provide financing for the purchase of brand-new cars from authorized dealerships. These loans generally cover up to 90–100% of the car’s on-road price with flexible repayment tenures.
Used Car Loan:
Also known as pre-owned car loans, these are offered for purchasing second-hand cars. Loan amount depends on the age, model, and valuation of the vehicle, usually covering 70–90% of its value.
Car Loan Balance Transfer:
This facility allows borrowers to transfer their existing car loan to another lender offering lower interest rates, reduced EMIs, or better repayment terms.
Top-up Car Loan:
Existing car loan borrowers can avail additional funds over and above their current loan. The top-up amount can be used for personal or financial needs, and repayment is combined with the ongoing car loan EMI.
A credit score of 700 or above is generally preferred by lenders. However, some banks and NBFCs may approve applications with lower scores, usually at higher interest rates.
Car loan tenures usually range from 1 year to 7 years. Choosing the right tenure depends on your repayment capacity and the EMI you are comfortable paying.
Yes, some banks and NBFCs offer up to 100% on-road price financing for new cars. However, for used cars, the loan amount is usually 70–90% of the car’s value.
Yes, most lenders allow prepayment or foreclosure of car loans. Charges vary between lenders, usually ranging from nil to 5% of the outstanding loan amount.
Yes, you can opt for a car loan balance transfer to shift your loan to another lender offering better interest rates and repayment terms.
Yes, many banks and NBFCs offer pre-approved car loans to their existing customers with good credit history, ensuring instant disbursal and minimal documentation.
Applicants need to submit identity proof, address proof, age proof, income proof (salary slips/ITR), passport size photographs, and a proforma invoice of the car from the dealer.
