Car Loan

OWith CredBuddha, owning your dream car is simpler and more affordable than ever. Our flexible car loans let you choose the car you desire while managing your finances comfortably.

• Flexible Payments: Start with a down payment and repay the balance through convenient monthly installments.
• Competitive Rates: We help you find car loan rates that fit your budget, so you don’t have to pay the full price upfront.
• Accessible Financing: CredBuddha makes car ownership within reach by offering loans that cater to your financial needs.
• Experience the joy of driving your own car without the financial strain. Apply for a car loan with CredBuddha today and get on the road to owning your perfect vehicle.

Best Car Loans from Banks

Car loan interest rates can vary based on different factors and different banks. We curated a set of competitive interest rates that are available for you. Go to the bank-wise interest rates now.

Features

• New Car: Interest rates 8.90% p.a. onwards
• Used Car: Interest rates 9.40% p.a. onwards
• Loan Amount: Up to 100% of the ex-showroom price for new cars, up to 80% of the car’s valuation for used cars
• Loan Processing Fees: Starting from 0.20% of the loan amount for new cars, up to 2% of the loan amount for used cars
• Loan Tenure: Up to 7 years for new cars, up to 5 years for used cars
• Prepayment/Foreclosure Charges: 0.5% - 5% on the outstanding principal or interest for the remaining term of the loan, whichever is lower

Car Loan EMI Calculator

• Monthly EMI ₹86
• Principal Amount ₹1,000
• Total Interest ₹32
• Total Amount ₹1,032

Eligibility Criteria

• Type of Car: Used Car loan / New car loan
• Residence: Urban / Rural / Semi-rural
• Age: 18 yrs - 75 yrs
• Employment type: Salaried / Self

Documents Required to Apply for Car Loan

• Identity Proof: Passport, driver's license, Aadhaar card, Voter ID
• Address Proof: Utility bill (electricity, water, or gas), bank statement
• Income Proof: Recent payslips, Income Tax Returns (IT returns)
• Photographs: Recent passport-sized photographs

Steps to Apply for a Loan

1. Click on "Apply For Loan" Start your application by clicking the "Apply For Loan" button
2. Fill Out Step 1: Enter your Name, Mobile Number, Employment Type, Salary, and Pincode. Click "Next".
3. Fill Out Step 2: Provide details about your Salary Type, Company Name, and Desired Loan Amount. Click "Next"
4. Fill Out Step 3: Enter your PAN Number, Date of Birth, Gender, and Email Address. Click "Next".
5. Fill Out Step 4: Enter your Address, Locality, City, and State. Click "Submit".

Car Loan Foreclosure

Car loan foreclosure lets you repay the remaining loan amount early, helping you save on interest costs and clear your debt sooner. However, it’s important to note the following:

• Foreclosure Fees: Lenders may charge a fee for early repayment. This fee is usually a percentage of the outstanding loan amount.
• Lock-in Period: Some loans have a minimum period before you can foreclose. You may be required to wait until this period ends.
• Requirements and Documentation: Each lender has specific requirements and documentation for the foreclosure process. It's best to contact your lender directly to understand the exact steps and any associated conditions.

Foreclosing your car loan can be a smart financial move, but make sure to review the terms and conditions with your lender to avoid any surprises.

Frequently Asked Questions

1. What is a car loan?

A car loan is a type of financing that allows you to purchase a vehicle by borrowing money from a bank or financial institution. You repay the loan amount, plus interest, over a specified period through monthly installments.

• 2. How can I apply for a car loan with CredBuddha?

  Applying for a car loan is easy with CredBuddha. Simply fill out our online application form with your details, and connect with the best loan offers from top lenders.

• 3. What are the eligibility criteria for a car loan?

  Eligibility typically depends on your age, income, employment status, credit score, and the type of vehicle you wish to purchase. Each lender may have slightly different criteria.

• 4. How much can I borrow with a car loan?

  The loan amount you can borrow usually depends on your income, creditworthiness, and the value of the car. Lenders often finance up to 80%-100% of the car’s on-road price.

• 5. What documents are required to apply for a car loan?

  Commonly required documents include proof of identity (Aadhar Card, PAN Card), proof of address, income proof (salary slips, bank statements, or tax returns), and vehicle-related documents. Some lenders may ask for additional documentation.

• 6. What is the interest rate for a car loan?

  Interest rates vary by lender and can be fixed or floating. Car loan interest rates typically start around 7.50% to 14% p.a. It’s beneficial to compare rates from different lenders to find the best deal.

• 7. What is the tenure for a car loan?

  Car loan tenures generally range from 1 to 7 years. Choosing a longer tenure can lower your monthly EMI but may increase the total interest paid over the loan period.

• 8. What is a down payment?

  A down payment is an initial upfront amount that you pay when purchasing a car. It reduces the loan amount you need to borrow. The higher the down payment, the lower your loan amount and monthly EMIs.

• 9. What is an EMI and how is it calculated?

  EMI (Equated Monthly Installment) is the fixed monthly payment you make towards repaying your loan. It includes both principal and interest. You can use an EMI calculator to estimate your monthly payments based on the loan amount, interest rate, and tenure.

• 10. Can I get a car loan with a low credit score?

  Yes, but it may be more challenging. Some lenders offer car loans to individuals with lower credit scores, often at higher interest rates. Improving your credit score can help you secure better terms.

• 11. What happens if I miss an EMI payment?

  Missing an EMI payment can result in late fees and negatively affect your credit score. It’s important to inform your lender immediately and explore possible solutions if you’re unable to make a payment.

• 12. Can I get a loan for a used car?

  Yes, many lenders offer loans for used or pre-owned cars. The loan amount and interest rates for used cars may differ from those for new cars.

• 13. Are there any tax benefits for car loans?

  Generally, car loans do not offer tax benefits for personal vehicles. However, if the car is used for business purposes, you may be able to claim certain deductions. It’s best to consult with a tax advisor for specific advice.