Compare Car Loans in India 2026
Here's a comparison of some of the best car loan schemes available in 2026, highlighting the starting interest rates and tenure:
Name of the Bank | Interest Rate (p.a.) | Tenure |
|---|---|---|
State Bank of India | Verfiy interest rate | Up to 7 years |
Indian Overseas Bank | Verfiy interest rate | Up to 7 years |
IDFC First Bank | Verfiy interest rate | Up to 10 years |
Canara Bank | Verfiy interest rate | Up to 7 years |
HDFC Bank | Verfiy interest rate | Up to 7 years |
IndusInd Bank | Verfiy interest rate | Up to 5 years |
ICICI Bank | Verfiy interest rate | Up to 7 years |
Union Bank of India | Verfiy interest rate | Up to 7 years |
Bank of Maharashtra | Verfiy interest rate | Up to 7 years |
Axis Bank | Verfiy interest rate | Up to 7 years |
Features & Benefits of Car Loans in India
Car loans in India are designed to make vehicle ownership simple, affordable, and accessible. Whether you are buying a new or used car, these loans come with flexible terms and customer-friendly benefits.
Key Features
Easy Car Ownership
Purchase your dream vehicle without paying the full amount upfront, making ownership financially manageable.
Up to 100% Financing
Some lenders may offers high finances, potentially covering a significant portion of the on-road price, subject to lender policy, vehicle type & applicant eligibity.
High Loan Amount Eligibility
Depending on your income and credit profile, you can avail high-value car loans, giving you the flexibility to choose from a wide range of vehicles.
Secured Loan Facility
Car loans are typically secured loans, where the vehicle itself acts as collateral, helping you get lower interest rates.
Quick & Hassle-Free Approval
With minimal documentation and fast processing, car loans are easier to obtain compared to many other loan types.
Why it Benefits You
Flexible Eligibility Criteria for various credit scores.
Fixed Interest Rate Options for stable EMIs.
Credit Score-Based Interest Rates for lower costs.
Finance for New & Used Cars available.
Types of Car Loans in India
Car loans in India are available in different types to suit various financial needs and customer profiles. Whether you are buying a new vehicle, a pre-owned car, or need urgent funds, there is a suitable car loan option available.
New Car Loan
A new car loan is designed for individuals looking to purchase a brand-new vehicle directly from the showroom. These loans come with competitive interest rates, flexible repayment tenures, and quick approvals.
Most lenders offer up to 100% financing of the car’s on-road price, reducing the need for a down payment and making it easier to own your dream car.
Used Car Loan
A used car loan helps you finance the purchase of a pre-owned vehicle at affordable terms. Lenders generally offer 80% to 85% of the car’s value as a loan, depending on the vehicle’s age and condition.
The repayment tenure usually goes up to 5 years, and many lenders prefer cars that are not older than 5 years. Interest rates may be slightly higher than new car loans but remain competitive.
Loan Against Car
A loan against car allows you to use your existing vehicle as collateral to secure funds for personal or business needs. This option is ideal when you need quick liquidity without selling your car.
Even individuals with a low credit score may qualify, as the loan is secured against the vehicle. The loan amount depends on the car’s current market value and condition.
Approved in 30 mins
Master Your Car Loan
and Save Big
Smart tips and strategies to get the best deal with lower EMIs.
Maintain a credit score of 750+
Compare multiple banks & NBFCs
Shorter tenure = Less interest
Secured loans have better rates
Key Components
EMI
Fixed monthly payment
Down Payment
Initial upfront amount
Tenure
Repayment period
Interest Rate
Cost of borrowing
Principal
Actual loan amount
Eligibility Criteria to available a Car Loan
The Car Loan Eligibility Criteria can be different for different banks. The common criteria are as follows:
Age
Usually 18+; lender-specific upper limit
Income
Stable and verifiable income
Employment
Salaried or self-employed
Credit Score
Higher score can improve eligibility
Work/Business Stability
Lender-specific
Existing EMIs
Considered while assessing repayment capacity
Vehicle
New/used vehicle subject to lender policy
Documents Required for Car Loan
Keep these documents handy to ensure a smooth and quick loan approval process based on your profile and vehicle choice.
Salaried Applicants
Standard requirements
- PAN
- Aadhaar / Identity Proof
- Address Proof
- Salary Slips
- Form 16
- Bank Statements
Self-Employed Applicants
Business & tax proof
- PAN / KYC
- ITR
- Bank Statements
- Business Proof
- Financial Statements (where required)
Vehicle Documents
Vehicle verification
- Proforma Invoice / Quotation
- Registration-Related Documents (for used car)
- Insurance Documents (where applicable)
Important Note
Additional documentation may be requested depending on the lender's internal credit policy and loan evaluation criteria.
How to Apply for a Car Loan Online
Follow these simple, step-by-step instructions to get your car loan approved and disbursed quickly.
Check Eligibility
Income, age, credit score etc. check karo.
Choose New or Used Car
Vehicle aur loan amount select karo.
Submit Application
Personal, employment and vehicle details submit karo.
Submit Documents
KYC, income and bank documents provide karo.
Verification & Approval
Lender application aur eligibility verify karega.
Loan Disbursal
Approval ke baad lender/dealer process ke according amount disburse hota hai.
Our Financial Partners
Why Choose
Money King.
![[object Object]](/_next/image?url=%2Fimages%2FChoose%2Fadv1.png&w=3840&q=75)
Personalized Personal Loan
One-day Approval and Disbursal
Secured Database
Minimal Documents
User-Friendly Experience
Lowest Interest Rate
Frequently Asked Questions About Gold Loans
Everything you need to know about Gold Loans at Money King.