Owning your dream car is much easier with a car loan. Meet your comfort zone with the car of your choice with the help of the most flexible loan.
Car loans involve a down payment, followed by monthly instalments. With Buddy Loan, get car loan rates that are reasonable to you without having to pay the full price at one go. Making car ownership more accessible and affordable.
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. G to the bank-wise interest rates, now.
| Bank | Interest Rate (p.a.) |
|---|---|
| State Bank of India(SBI) | 8.60 p.a. onwards |
| HDFC Bank | 7.90% - 11.01% p.a. |
| ICICI Bank | 10.00% onwards (12-35 months) |
| Axis Bank | 8.95% - 13.80% p.a. |
| Kotak Mahindra Bank | 7.70% - 25% p.a. |
| RBL Bank | 12% - 14% p.a. |
| Canara Bank | 9.15% p.a. onwards |
| Federal Bank | 11.00% p.a. onwards |
| Bank of Baroda | 8.85% p.a. onwards |
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The above mentioned rates are subject to change with the finance market and differ marginally with the respect to the individual banksCar loan fees and charges are important considerations to settle. They include processing fees, documentation charges, prepayment penalties, and late payment fees. They prove to be of great benefit as it is crucial for effective budgeting.
The rates below provided are a compilation of the various charges and rates that are applicable while applying for a car loan.
| Features | New Car | Used Car |
|---|---|---|
| Interest rates | 8.90% p.a. onwards | 9.40% p.a. onwards |
| Loan Amount | Up to 100% of the ex-showroom price | Up to 80% of the car’s valuation |
| Loan Processing Fees | Starting from 0.20% of the loan amount | Up to 2% of the loan amount |
| Loan Tenure | Up to 7 years | Up to 5 years |
Prepayment/Foreclosure Charges
0.5% - 5% on the outstanding principal or interest for the remaining term of the loan, whichever is lower.
A car loan EMI calculator helps you estimate monthly repayment & gain clarity on the financial hedges. Plan your car loan interest rate, and determine their eligibility and affordability for the loan.
Input the loan amount, interest rate, and loan tenure, the calculator provides an estimate of the Equated Monthly Instalment (EMI) that needs to be paid towards the car loan.
It is important to check your Car loan eligibility factor to qualify before opting for a car loan. Check your eligibility here,
| Criteria | Requirement |
|---|---|
| Type of car | Used Car loan/ New car loan |
| Residence | Urban/Rural/Semi-rural |
| Age | 18 yrs - 75 yrs |
| Employment type | Salaried/Self |
| Salary | Depends on the bank |
To apply for a car loan, provide some basic documents as proof of identity and income. Hence, here’s a list of car loan documents required:
Besides meeting basic eligibility getting a car loan requires specific guidelines for approval.
| Do's | Don'ts |
|---|---|
| Maintain a good credit score | Don't miss or make late payments on existing debts. |
| Pay off existing debts and reduce outstanding balances. | Don't apply for multiple loans simultaneously. |
| Save for a down payment. | Don't exceed your budget for the car purchase. |
| Research and compare lenders and loan terms. | Don't provide false information on your loan application. |
| Keep a stable employment history. | Don't change jobs frequently before applying. |
| Gather necessary documents in advance. | Don't ignore your credit report and credit history. |
| Provide accurate and complete information. | Don't co-sign a loan for someone with a poor credit history. |
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Personal loans for purchasing a car and car loans serve differently. It is subjective to your purpose of availing a loan. Since personal loans are unsecured loans it is possible to to buy a car, while on the other hand car loans specifically cater to purchasing a vehicle. But there are other criteria that make them different, here are some of them-
| Aspect | Personal Loans for Car Purchase | Car Loans |
|---|---|---|
| Purpose | Can be used for various personal expenses. | Specifically designed for purchasing a vehicle. |
| Collateral | Typically unsecured loans. | The car itself acts as collateral. |
| Loan Amount | Generally lower loan amounts. | Higher loan amounts depending on the vehicle's value. |
| Interest Rates | Interest rates may be higher. | Lower interest rates due to the collateral. |
| Loan Term | Loan terms can vary from a few months to years. | Loan terms are usually shorter, often up to 7 years. |
| Repayment | Fixed monthly instalments. | Fixed monthly instalments. |
| Flexibility | Funds can be used for various car re-purposes. | Funds are dedicated to car purchase only. |
| Eligibility | Based on credit history, income, and other factors. | Creditworthiness, income, and vehicle details are considered. |
| Ownership | No impact on ownership of assets. | Ownership of the car upon successful loan repayment. |
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Car loans offer flexible amounts and tenure options, competitive rates based on credit history, quick approval, and financing for various car models, with convenient repayment through EMIs.
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Here’s the step-by-step process that you can follow to apply for a car loan on Buddy Loan:
Car loan foreclosure allows early repayment of the outstanding amount, saving on interest and eliminating debt.
Car loan refinancing replaces an existing loan with a new one from a different lender, offering improved terms, lower rates, and potential savings on payments and interest. Evaluate options, compare lenders, and consider fees for a beneficial refinancing decision.
Here are some reasons to refinance car loan
Car loan is a type of financing that helps you purchase a vehicle by borrowing funds from a lender and repaying the loan over a specified period with interest.
Car loans can be used to finance a wide range of vehicles, including new cars, used cars, luxury cars, SUVs, and other passenger vehicles, subject to the eligibility criteria set by the lenders.
Secured car loan requires collateral, such as the vehicle itself, which can be seized by the lender in case of default, while an unsecured car loan does not require collateral but typically comes with higher interest rates.
To apply for a car loan, you can typically visit a bank or financial institution, submit the required documents, including proof of income, identification, and vehicle details, and complete the application process, which may involve a credit check and evaluation of your eligibility.
When applying for a car loan, you typically need to provide documents such as proof of identity, address, income, employment details, bank statements, vehicle-related documents, and in some cases, a copy of your driving licence.
The minimum credit score required to get a car loan varies among lenders, but generally, a credit score of 650 or higher is considered favourable for obtaining competitive interest rates and loan terms.
The maximum loan amount for a car loan depends on various factors such as the lender's policies, your creditworthiness, income, and the value of the vehicle, but it is typically capped at a certain percentage of the car's on-road price or its appraised value.
The time it takes to get approved for a car loan can vary depending on factors such as the lender's processes, documentation requirements, and your creditworthiness, but it typically ranges from a few hours to a few days.
The typical interest rate for a car loan in India ranges from around 7% to 15%, but it can vary depending on factors such as the lender, loan amount, loan term, your creditworthiness, and prevailing market conditions.
The repayment period for a car loan usually ranges from 3 years to 7 years, depending on the lender's terms and conditions and the borrower's preferences.
Yes, it is generally possible to pay off your car loan early, but it is advisable to check with your lender regarding any prepayment penalties or charges that may apply.
If you default on your car loan, the lender may take legal action, repossess the vehicle, and sell it to recover the outstanding loan amount, potentially impacting your credit score and making it more difficult to secure loans in the future.
Yes, you can refinance your car loan by obtaining a new loan with better terms, such as lower interest rates or extended loan repayment period, to replace your existing car loan.
Dealer loan is provided by the car dealership directly, while a bank loan is obtained from a financial institution, with the key difference being the source of financing.
You can use a car loan emi calculator to calculate your monthly payment for a car loan.
The highest amount of a new car loan that you can avail depends on various factors such as the lender's policies, your creditworthiness, income, and the value of the car.
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