A car loan is a type of personal loan that you use to buy a vehicle.
A car loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a car. Generally speaking a loan is an amount of money that is lent to an individual, a business, or another entity. The party that lends the money is known as the lender, while the party borrowing the money is called the borrower.
A car loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a car. Generally speaking a loan is an amount of money that is lent to an individual, a business, or another entity. The party that lends the money is known as the lender, while the party borrowing the money is called the borrower.
List of Documents required for Car Loan
| Documents | Requirements |
| Application Form | With signature and Photograph |
| Proof of identity | Passport/VoterID/Aadhar/Drivers License/PAN Card |
| Proof of address | Driving License/Valid Passport/Job Card/Voters ID |
| Proof of Age | Drivers License/Class 10th mark sheet/Birth certificate/ TC/School leaving certificate |
| Proof of Income | Income Tax Return/Salary slips/Bank statement/Form 16 |
FAQ
Yes, certain lenders offer 100% of the on-road price of the car as a loan.
Yes, you can prepay the entire car loan and save on vital interest payments in the future. However, Banks will allow the pre-payment option after you have chalked off 6 months on your loan tenure.
Unless otherwise specified, almost all small to medium sized cars, Commercial Vehicle Loan, Sports Utility Vehicles (SUV), and Multi Utility Vehicles (MUV) come under the purview of car loans available in India.
Most Banks in India will not insist upon any guarantors; however, if your annual income does not match up to the expected requirement, then you may be expected to sign-up as a co-applicant and/or guarantor
Repayment tenures usually range from 12 months to 84 months (1-7 years).
Just like with most loans, a high credit score above 750 is ideal. But you can still apply for a loan if your credit score is above 600.
Yes. some banks will offer lower interest rates to applicants with high credit scores.
When you apply for a car loan, Bank will look for a credit score of at least 750. Some banks may offer you a car loan despite your low credit score but they may charge a higher interest rate.