Feel the joy of a longer drive

Take the next drive in your own car with a car loan.

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	8.75% p.a. onwards	Up to 7 years
Indian Overseas Bank	7.55% p.a. onwards	Up to 7 years
IDFC First Bank	9.99% p.a. onwards	Up to 10 years
Canara Bank	7.45% p.a. onwards	Up to 7 years
HDFC Bank	9.00% p.a. onwards (Rack Interest)	Up to 7 years
IndusInd Bank	8.00% p.a. onwards	Up to 5 years
ICICI Bank	8.50% p.a. onwards	Up to 7 years
Union Bank of India	7.40% p.a. onwards	Up to 7 years
Bank of Maharashtra	7.45% p.a. onwards	Up to 7 years
Axis Bank	8.85% p.a. onwards	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

Many lenders offer up to 100% financing on the on-road price, reducing or even eliminating the need for a down payment.

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 Avail a Car Loan

The Car Loan Eligibility Criteria can be different for different banks. The common criteria are as follows:

Age Limit

Individual must be between 18 to 75 years.

Monthly Income

Minimum net monthly income of ₹20,000.

Work Experience

Minimum 1 year with the current employer.

Employment Type

Salaried or Self-Employed in Govt. or Private sector.

Documents Required to Avail a Car Loan

To prove your eligibility, you'll need to provide certain documents. Though this is specific to different lenders, the common documents will be:

Identity Proof

Any one of the following

[Aadhaar Redacted]
Passport
Driving License
Voters ID Card
PAN Card

Address Proof

Any one of the following

[Aadhaar Redacted]
Passport
Driving License
Ration Card
Utility Bills

Proof of Income

Based on your profile

Form 16 / Salary Slips (Salaried)
Latest Income Tax Returns
Bank Statements (Last 6 Months)

Used Car Loans

The documents required for a used car loan are the same as above. No extra hassle.

Important Note

Always confirm with your specific lender as requirements can change based on your situation.

Frequently Asked Questions

Everything you need to know about Car Loans at Money King.

A car loan is a financing option that allows you to purchase a vehicle by paying in easy EMIs over a fixed tenure instead of paying the full amount upfront.