Applying for a car loan can seem complex, especially with so many lenders, interest rates, and eligibility criteria. But don’t worry — we’ve got you covered! In this blog, we will explain everything you need to know to apply for a car loan in india, from understanding interest rates to checking eligibility and gathering the right documents. Whether you’re buying a new vehicle or a used one, this complete guide by Jashvi Consultant will make the process easier for you.
Why Choose a Car Loan?
A car loan helps you own a vehicle without needing to pay the full amount upfront. Instead, you repay the amount in monthly installments, also known as EMIs (Equated Monthly Installments). This makes car ownership accessible and affordable.
Types of Car Loans
- New Car Loan
- For those purchasing a brand-new car.
- Usually offers lower interest rates compared to used car loans.
- Used Car Loan
- Designed for buying pre-owned vehicles.
- Slightly higher interest rates due to higher risk.
- Car Refinance Loan
- If you already have a car loan, you can refinance it for better terms.
- Loan Against Car
- Borrow money by using your existing car as collateral.
Car Loan Interest Rates in India
Car loan interest rates vary depending on your credit profile, bank policies, and type of vehicle. Here are some factors that influence your car loan interest rate:
- Credit Score: Higher score = lower interest rate.
- Loan Tenure: Shorter tenures often have better rates.
- Vehicle Type: New cars have lower rates than used cars.
- Employment Type: Salaried individuals may get better rates.
Average Interest Rates in 2025:
- New Car Loan: 7.00% to 9.50%
- Used Car Loan: 9.50% to 14.00%
Eligibility to Apply for Car Loan
To apply for car loan, you must meet some basic eligibility criteria. These may vary slightly between lenders but generally include:
For Salaried Individuals:
- Age: 21 to 60 years
- Minimum income: ₹20,000/month
- Job stability of at least 1 year
For Self-Employed Individuals:
- Age: 21 to 65 years
- Income: Minimum ₹25,000/month
- Business tenure: At least 2 years
Other Criteria:
- Good credit score (preferably 700+)
- Stable address and bank account
Documents Required for Car Loan
Here’s a list of car loan documents required by most banks and NBFCs:
1. Identity Proof:
- Aadhaar Card
- PAN Card
- Voter ID / Passport / Driving License
2. Address Proof:
- Utility bills (Electricity/Water/Gas)
- Rental agreement
- Passport
3. Income Proof:
- Salaried: Last 3 months’ salary slips, Form 16
- Self-employed: ITR for 2 years, business registration proof
4. Bank Statements:
- Last 6 months
5. Vehicle-Related Documents:
- Proforma Invoice of the car
- RC (for used cars)
How to Apply for Car Loan with Jashvi Consultant
At Jashvi Consultant, we simplify the loan process for you. Here’s how:
- Fill Online Form: Provide basic details about yourself and the car.
- Document Collection: Our experts will guide you on all required documents.
- Loan Matching: We compare offers from multiple banks to find the best car loans.
- Approval & Disbursal: Get fast approval and quick disbursal right into your account.
Benefits of Getting a Car Loan
- Own a car without paying the full price upfront
- Build your credit score by timely repayments
- Flexible EMI options to suit your budget
- Choose from multiple lenders for best deals
Tips to Get the Best Car Loan Interest Rate
- Maintain a high credit score
- Choose shorter tenure if possible
- Opt for a new car over a used one
- Make a higher down payment
- Compare multiple loan offers
Common Mistakes to Avoid
- Not checking credit score before applying
- Ignoring hidden charges
- Choosing longer tenure to lower EMI
- Not comparing multiple lenders
- Providing incomplete documents
Conclusion
Getting a car loan doesn’t have to be complicated. With the right guidance and preparation, you can easily secure a loan at the best car loan interest rate. At Jashvi Consultant, we help you compare, choose, and apply for the most suitable car loan offer based on your needs. So whether you’re buying your first car or upgrading to a better one, let us help you drive your dreams forward!
FAQs – Car Loan in India
1. Can I apply for a car loan with a low credit score?
Yes, but your interest rate may be higher. It’s better to improve your credit score before applying.
2. What is the maximum tenure for a car loan?
Most lenders offer car loan tenures from 1 to 7 years.
3. Is there any tax benefit on a car loan?
No tax benefits are available on personal car loans. However, business vehicles may offer deductions.
4. Can I prepay or foreclose my car loan early?
Yes, most banks allow prepayment with minimal or no charges after a certain period.
5. How long does it take to get car loan approval?
With complete documents, loan approval can take 24 to 48 hours.