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Car Loan

CAR LOAN

Get Your Dream Car with a Car Loan

Looking for affordable car financing? Better Loanz offers loans for new and used cars, serving customers in cities, rural, and semi-urban areas. Our process is fast and easy, with personalized support from our team right at your doorstep. We've digitized everything to minimize paperwork and hassle.

A car loan is a type of personal loan used to purchase a vehicle. It's a secured loan, meaning the vehicle itself serves as collateral. Here, we’ll explore the basics, the application process, and tips for securing a favorable loan.

Eligibility Criteria for a Car Loan

When considering a Car loan, it's important to understand the eligibility criteria set by lenders. These criteria can vary from one lender to another, but generally include the following factors:

Aged between 21 and 60 years

Salaried or a working professional

Having a job and a minimum of 3 months experience

Having a minimum of Rs. 25,000 net income per month.

Documentation Required

Photo Identity Proof

  • Voter ID
  • Aadhaar Card
  • Passport
  • PAN
  • Driving Licence

Proof of Residence or Address Proof

  • Aadhaar Card
  • Driving Licence
  • Passport
  • Registered Rent agreement
  • Latest gas or electricity bill
  • Bank statement with current address

Income Proof

  • Income Tax Returns for the last 3 years
  • Balance Sheet audited by a certified CA and Profit and Loss account for the last 3 years
  • 6 month bank statements of current or savings accounts
  • A copy of Form 16 for 2 years
  • Last 3 months’ salary slip

Others

  • No Objection Certificate or NOC

Car Loan Balance Transfer

Car loan balance transfer refers to the process of transferring your existing car loan from one lender to another, typically to take advantage of better terms, lower interest rates, or improved repayment conditions offered by the new lender. This transfer allows you to potentially save money on interest payments or adjust your loan terms to better suit your financial situation. It involves paying off your current loan with funds from the new lender, who then becomes responsible for the remaining balance of your car loan

Documents required for a balance transfer

  • Identity proof – Passport, Aadhar Card, Driving License, etc.
  • Address proof – Aadhaar Card, Passport, Voter’s ID, etc.
  • Bank statements - Last 12 months’ statements for current and savings accounts
  • Income proof - Balance sheet and Profit/Loss Account audited by a registered CA for the last two years, last three years of ITRs - both company and individual
  • Property documents - Allotment Letter, Sale Deed, NOC, Allotment Letter from Society, Stamped Agreement of Sale, Possession Certificate, etc.

Eligibility

Different financial institutions use their own set of eligibility criteria. Check carloan eligibility online of your chosen lender before you make a decision. These are some common eligibility criteria laid out by banks and NBFCs that you must fulfill:

  • Be a salaried or a working professional or self-employed
  • Be a Resident Indian, Non-Resident Indian (NRI), or a Person of Indian Origin (PIO)
  • Aged between 21 and 65 years
  • Having a minimum work or business experience of 1 year
  • Having a minimum monthly income of Rs. 20,000

Conduct a home loan eligibility check online to understand if you can apply for a loan with the lender of your choice.

Benefits of a Car Loan

Affordable Interest Rates

Car loans generally offer lower interest rates compared to unsecured loans, making them more affordable over the long term.

Tax Benefits

You may be eligible for tax deductions on the interest paid and the principal repayment under various sections of the Income Tax Act.

Flexible Tenure

Car loans come with flexible repayment terms, allowing you to choose a tenure that suits your financial situation.

Application Process

Step-1

Connect with us and explain your needs. We curate a bunch of loan products most suitable for your profile

Step-2

Next, we help you compare several car loan products so you can choose the best one.

Step-3

Once you've picked a lender, we help you with the application process. You need to apply for the loan online and submit all necessary paperwork.

Step-4

Once you submit your application, the lender takes some time to process it and verify your documentation.

Step-5

Finally, you receive the loan amount in your account.

Feel free to use our Equipment Finance Calculator

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FREQUENTLY ASKED QUESTIONS

Find Answers to Common Questions

    • Loan Amount: Borrowers receive a lump sum to cover the purchase price of the vehicle.
    • Interest Rate: The lender charges interest on the loan amount, typically expressed as an annual percentage rate (APR).
    • Repayment Terms: Borrowers repay the loan through monthly installments over a set period, usually 2 to 7 years.
    • Collateral: The vehicle serves as collateral, meaning the lender can repossess it if the borrower defaults on payments.
    • Direct Financing: Obtained directly from a bank, credit union, or online lender.
    • Dealership Financing: Arranged through the dealership, often in partnership with financial institutions.
    • Used Car Loans: Specifically for purchasing pre-owned vehicles.
    • New Car Loans: Designed for buying brand-new vehicles.
    • Credit Score: A higher credit score can qualify you for lower interest rates.
    • Loan Amount: Determine the amount you need to borrow based on the vehicle’s price and your budget.
    • Interest Rates: Compare rates from different lenders to find the best deal.
    • Loan Term: Choose a repayment period that fits your budget and financial goals.
    • Down Payment: Save for a down payment to reduce the loan amount and overall cost.
    • Yes, some lenders offer car loans to individuals with less-than-perfect credit. However, these loans may come with higher interest rates and stricter terms. Improving your credit score or making a larger down payment can help secure better terms.
    • Research Lenders: Compare offers from banks, credit unions, and online lenders.
    • Check Eligibility: Review the lender’s requirements, including credit score and income.
    • Gather Documents: Prepare necessary documents such as ID, proof of income, and vehicle information.
    • Submit Application: Complete the application form and provide required documentation.
    • Loan Approval: The lender evaluates your application, checks your credit, and determines loan approval.
    • Signing the Loan Agreement: If approved, review and sign the loan agreement, agreeing to the terms and conditions.
    • Vehicle Purchase: Use the loan funds to purchase the vehicle and arrange for insurance.
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    • Late Fees: Lenders typically charge fees for missed or late payments.
    • Repossession: Failure to make payments can lead to repossession of the vehicle by the lender.
    • Credit Impact: Missed payments can negatively impact your credit score, making it harder to obtain credit in the future.
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