Hello friends! As you all know, today everyone dreams of having their own car. So that they can travel comfortably with their family, whether it’s rain or shine, the journey feels easy, and you get to enjoy the company of your loved ones. But often the biggest question is where will the money come from? Because buying a car requires a large amount of money.
In such a situation, a car loan can be the best solution. Through a car loan, the process of buying a car becomes much easier. Instead of paying the full amount at once, you can pay a certain percentage as a down payment and take the car, then gradually repay the rest in easy EMIs.
Nowadays, most banks and finance companies offer loans for both new and used cars. The interest rate ranges between 7.05% to 11.5%, depending on your credit score and the bank. The loan tenure can range from 1 year to 7 years, so that the EMI can be set according to your budget. So if you also want to take advantage of a car loan, stay with us till the end of this post.
In this post, we will learn what a car loan is, how to get a car loan, the interest rates, and the essential documents required for a car loan. Plus, we’ll cover lots of other important information!
What is a Car Loan Offers ?
In simple words, a car loan means borrowing money from a bank or finance company to buy a car. Just like when we don’t have money for something, we borrow from someone and gradually repay it, the same applies here. If you don’t have the full amount, don’t worry—you can pay a small down payment and take the rest as a loan. Then, every month you pay a fixed installment (EMI), which includes both the principal and the interest. Interest rates range from 7.05% to 11.05%. With a car loan, you can buy your dream car in simple and easy steps.
Essential Documents for a Car Loan
- Aadhaar Card
- PAN Card
- Salary: 3–6 months salary slips, bank statement
- Self-employed: 2 years ITR returns, bank statement
- Vehicle Documents: Booking/Bill, insurance details
- Photo: Passport-size photograph
Government Bank Car Loan Interest Rates & Charges
| Bank Name | Interest Rate (Annual) | Down Payment | Processing Fee | Processing Time |
| SBI (State Bank of India) | 8.85% – 9.80% | 10% – 15% | ₹2,000 – ₹10,000 | 7–10 working days |
| Bank of Baroda | 8.50% – 9.00% | 10% – 15% | ₹2,500 – ₹10,000 | 7–10 working days |
| HDFC Bank | 7.9% – 9.50% | 0% – 10% | ₹3,500 – ₹12,000 | 30 minutes (digital process) |
| ICICI Bank | 9.15% – 11.25% | 10% – 15% | ₹2,500 – ₹10,000 | 2–3 working days |
| Axis Bank | 9.30% – 9.75% | 10% – 15% | ₹3,500 – ₹12,000 | 7–10 working days |
| PNB (Punjab National Bank) | 8.50% – 9.60% | 10% – 15% | ₹1,000 – ₹5,000 | 7–10 working days |
| Bank of India | 7.85% – 10.50% | 10% – 15% | ₹1,000 – ₹5,000 | 7–10 working days |
| Canara Bank | 8.05% – 8.50% | 10% – 15% | ₹1,000 – ₹5,000 | 7–10 working days |
| Union Bank of India | 8.50% – 9.00% | 10% – 15% | ₹2,500 – ₹10,000 | 7–10 working days |
| Bank of Maharashtra | 8.50% – 9.00% | 10% – 15% | ₹2,500 – ₹10,000 | 7–10 working days |
RBI Approved Car Loan Apps (Updated with Approval Time)
| App Name | Maximum Loan Amount | Interest Rate (Annual) | Features | Loan Approval Time |
| MoneyTap | Up to ₹5 lakh | 13% – 24% | 100% digital process, EMI options | 30 minutes – 1 day |
| CASHe | Up to ₹3 lakh | 12% – 30% | Designed for salaried individuals | 1–2 days |
| PaySense | Up to ₹5 lakh | 16% – 36% | EMI calculator, easy top-up loans | 1–2 days |
| Dhani | Up to ₹15 lakh | Starting at 13.99% | Instant credit, discounts on Dhani app | 1–2 days |
| Buddy Loan | Up to ₹15 lakh | Starting at 11.99% | Multiple loan options, flexible terms | 1–2 days |
| KreditBee | Up to ₹4 lakh | 15% – 29.95% | Quick approval, short-term loans | 1 day |
| Fibe | Up to ₹5 lakh | 12% – 30% | Designed for salaried individuals, quick approval | 1–2 days |
| LoanTap | Up to ₹10 lakh | Starting at 1.5% per month | Personal loans, business loans, electric two-wheeler loans | 1–2 days |
| Navi | Up to ₹20 lakh | Starting at 9.9% | 100% paperless, quick disbursal | 1 day |
| Bajaj Finserv | Up to ₹40 lakh | 10% – 32% | Trusted NBFC, high-value loans | 1–2 days |
In short, a car loan is the easiest and safest way to buy your dream car without paying the full amount upfront. With a small down payment and easy EMIs, you can own a car and enjoy hassle-free travel with your family. Just check your eligibility, compare interest rates, and choose the loan that fits your budget.
Car Loan Offers FAQs
Which bank is best for vehicle loans?
Most banks offer good car loans, but SBI, HDFC, ICICI, and Axis Bank are popular for easy approval and flexible EMIs.
Can I get 0% interest rate for a car loan?
0% interest is rare. Sometimes banks offer special schemes on new cars, but usually, there’s a small interest rate.
Which bank gives 100% funding for a car loan?
Few banks provide 100% funding, usually based on your credit score and income. Most banks require a small down payment.
What is the SBI loyalty car loan scheme?
SBI Loyalty Car Loan gives special benefits like lower interest rates to existing SBI customers with good banking history.
Which car loan is best, HDFC or SBI?
Both HDFC and SBI are reliable. HDFC is faster for approval, SBI offers lower interest rates in some schemes.
What is the CIBIL score for a car loan?
A good CIBIL score of 750+ improves your chances of approval and gets you better interest rates.
