Drive Home Your Dream Car
Car loan rates starting at 7.50% p.a.* Up to 100% on-road funding. New cars, used cars, and two-wheelers — all covered. Tenure up to 10 years.
Vehicle Loan Eligibility
Get instant quotes from top lenders at 8.75% p.a.
What Is a Vehicle Loan?
A vehicle loan — also called a car loan or auto loan — is a secured loan where the vehicle itself serves as collateral. Banks finance up to 80–100% of the car's on-road price, and you repay through fixed monthly EMIs over 1 to 7 years. Interest rates for new cars are typically lower than used cars because the asset is brand new and carries less depreciation risk.
Up to 100% Funding
Many banks finance the full on-road price including insurance, registration, and accessories.
Quick Processing
Lenders can disburse pre-approved car loans within 24 hours. Walk into the showroom ready.
Flexible Tenure
Repay over 1 to 7 years. Choose a tenure that fits your monthly budget comfortably.
Lower Rates (Secured)
Since the car is collateral, interest rates are lower compared to personal or business loans.
Types of Vehicle Loans
Choose the right financing based on the type of vehicle and whether it's new or pre-owned.
Car Loan
- Covers hatchbacks, sedans, SUVs, and luxury cars
- Up to 100% on-road price financing
- Rates from 7.50% p.a. for new cars
- Tenure up to 7 years
Commercial Vehicle & Two-Wheeler Loan
- Two-wheelers, three-wheelers, and commercial vehicles
- Specialized lenders like Mahindra Finance and Shriram Finance
- Slightly higher rates for commercial use vehicles
- Flexible down payment options for fleet operators
Calculate Your Car Loan EMI
Adjust the loan amount, interest rate, and tenure to see how much your monthly EMI will be and plan your car purchase accordingly.
Car Loan EMI CalculatorInstant Estimate
Lowest Available Rate
7.50%*
Bajaj Finserv, Bank of Baroda, and Kotak Mahindra Bank currently offer new car loans starting between 7.50%–7.70% p.a. Your actual rate depends on the car make and model, loan amount, your credit score, and whether you hold a salary account with the bank. Used car loans start around 10.50% and vary based on the vehicle's age.
CIBIL Score
750+ gets you the lowest rates from most lenders
Car Make & Model
Popular brands and models get better rates
Down Payment
Higher down payment can reduce your interest rate
Salary Account
Existing customers get 0.25–0.50% discount
Compare Car Loan Interest Rates — March 2026
Side-by-side comparison of new car loan rates, maximum amounts, and tenures from top banks and NBFCs.
| Lender | Interest Rate (p.a.) | Max Amount | Max Tenure | Action |
|---|---|---|---|---|
State Bank of India Public Sector Bank | 8.70% - 15.60% | Up to 100% On-Road | 7 Years | Apply |
Bank of Baroda Public Sector Bank | 7.60% - 12.50% | Up to 90% On-Road | 7 Years | Apply |
HDFC Bank Private Bank | 8.20% - 14.00% | Up to ₹3 Cr | 7 Years | Apply |
ICICI Bank Private Bank | 8.50% - 13.50% | Up to 100% On-Road | 7 Years | Apply |
Axis Bank Private Bank | 8.75% - 11.80% | Up to 100% On-Road | 8 Years | Apply |
Kotak Mahindra Bank Private Bank | 7.70% - 25.00% | Up to 100% Ex-Showroom | 7 Years | Apply |
IDFC FIRST Bank Private Bank | 9.60% - 9.99% | Up to 100% On-Road | 10 Years | Apply |
Bajaj Finserv NBFC | 7.50% - 12.00% | Varies by Model | 7 Years | Apply |
Mahindra Finance NBFC | 8.75% - 16.00% | Up to 100% Ex-Showroom | 5 Years | Apply |
Tata Capital NBFC | 9.99% - 15.00% | Up to ₹50 Lakh | 7 Years | Apply |
Car Loan Eligibility Criteria
General requirements for car loan approval. Criteria may differ across lenders and vehicle types.
| Age | 21 to 65 years at loan maturity |
| Minimum Income (Salaried) | ₹15,000 to ₹25,000 net monthly salary |
| Minimum Income (Self-Employed) | ₹2 Lakh+ annual income with ITR for last 2 years |
| CIBIL Score | 700+ for approval | 750+ for the best rates |
| Employment Stability | 1+ year total experience; 6 months with current employer |
| LTV Ratio (New Car) | Up to 100% of on-road price (ex-showroom + insurance + RTO) |
| LTV Ratio (Used Car) | 70–85% of current market value; car age + tenure ≤ 8–10 years |
| Down Payment | 0–20% for new cars; 15–30% for used cars depending on lender |
Car Loan Fees & Charges
Additional costs to factor in when planning your vehicle purchase.
Processing Fee
0.5% to 2.5% of loan amount. Some banks waive this during festive offers.
Prepayment Charges
Nil on floating-rate loans (RBI rule). Fixed-rate: 2–5% of outstanding principal.
Insurance
Comprehensive car insurance mandatory. First year often bundled with the loan.
Late Payment
Penal interest of 1–2% p.a. on overdue EMIs. May affect your CIBIL score.
Documents Required for Car Loan
Keep these documents ready for a smooth and fast car loan approval.
Car Loans Available Across India
Apply from anywhere. We serve car buyers across all major cities through our 50+ lending partners.
Mumbai
Highest Car Sales
Delhi NCR
SUV Capital
Bangalore
Tech Hub
Hyderabad
Growing Market
Chennai
Auto Hub
Pune
Rising Demand
How to Apply for a Car Loan
A simple 5-step process from choosing your car to driving it home.
Choose Your Car
Pick your dream car and get the proforma invoice from the dealer.
Compare Offers
Use TatvaMoney to compare rates from 50+ banks and NBFCs instantly.
Submit Documents
Upload KYC, income proof, and car invoice through our digital platform.
Lender Approval
Bank verifies your profile and issues approval letter — often same day.
Drive Home
Lender disburses the loan to the dealer. Complete RTO formalities and drive away.
What Car Buyers Say
"Got my car loan approved at 8.65% through TatvaMoney. Compared 6 banks in 10 minutes. The entire process from application to disbursal took just 3 days."
"As a first-time car buyer, I had no idea about the paperwork. TatvaMoney's team walked me through everything. Got 100% on-road funding from HDFC Bank."
"Bought an EV and TatvaMoney helped me find an SBI Green Car Loan at a special rate. Saved about ₹40,000 in interest compared to my dealer's offer."
Ready to Buy Your Dream Car?
Compare car loan rates from 50+ lenders, check eligibility instantly, and drive home your new car with the best deal.