Car Loan @ 8.50%*

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Buy your dream Car

Rates as low as 8.50%*
Up to 100% Funding
Doorstep Service
Hassle-free Disbursal
Unbiased Experts Advice

Top Car Loan Providers

Bank Rate of Interest Processing Fee
HDFC Bank 8.85% onwards 0.4% of the loan amount
Axis Bank Car Loan 9.05% p.a. onwards Minimum of Rs.3,500 and maximum of Rs.5,500
Indian Bank Car Loan 8.45% p.a. onwards 0.230% of the loan amount (Maximum of Rs.10,236)
ICICI Car Loan 8.70% p.a. onwards Min Rs. 2,500 and Max Rs. 5,000
Canara Bank Car Loan 7.70% p.a. onwards 0.25% of the loan amount, subject to a minimum of Rs.1,000 and a maximum of Rs.5,000
Union Bank of India Car Loan 7.80% p.a. onwards 0.25% to 0.50% of the loan amount
Federal Bank Car Loan 8.90% p.a. onwards 0-3%

Car Loan Benefits

In India, aside from the issue that paying such a tremendous total of money may upset one’s financial plan, enormous buys with fluid money could put you on the Income Tax office’s radar too. However, when you get a car loan to pay for your car, you figure out how to hold your investment funds for other current and future costs.

One of the best car loan benefits in India is that the loan secured against the car itself, along these lines, you don’t need to mortgage your property or different resources for getting a car loan. You additionally get the opportunity to utilize your car while you are overhauling the car loan term, so a couple of years down the line you have added to your unique reserve funds and have the chance to possess the car once you have paid the loan.

This allows you to boost your credit history as a consumer by obtaining a car loan and carefully adhering to the reimbursement cycle. A decent credit score (above 700) as a consumer including convenient instalments and cleared obligations assist you with getting further loans later on. Car loans, consequently, are an exceptionally protected and certain method of buying your car.

Features of a Car Loan

Y’all can enjoy interest rates as low as 8.50% per annum and repayment tenure of up to 7 years. You will be able to get your dream car with Dialabank. You’ll be able to get funding from 80 per cent to 100 per cent of the on-road price of the car.

  1. Interest Rate will be 8.50% p.a. onwards.
  2. Processing Fee starts from 0.25% of the loan amount.
  3. Loan Tenure from 1 year up to 7 years.
  4. Pre-closure Charges varies from bank to bank.
  5. Guarantor requirement varies from bank to bank.

Eligibility Criteria and Documents Required 

Car loan eligibility criteria are different for different banks. The standard criteria are as follows:

  • Age of the applicant needs to be between 18 years and 65 years.
  • The minimum monthly earning of the applicant should be Rs. 20,000.
  • At least one year of employment with the same employer.
  • Applicant should be salaried (working for a government institution or a private company) or Self-Employed for at least three years.

The following documents are required to be eligible for the car loan:

Identity Proof  Residence Proof  Income Proofs
Driving License Copy of Electricity Bill/Water Bill/Telephone Bill Salary Slips for the last three months
PAN/ Aadhaar Copy of valid Passport/Aadhar Card/Driving License Copy of Form 16 or Income Tax Returns for the last two years
Voter ID   Bank account statements of the last 6 months
Valid Passport   If self-employed, submit P&L account, Balance sheet

Things to Remember While Availing a Car Loan

Step by Step Process Action Required Conclusion
Applying for Car Loan Make comparisons between the choices available Finding deals that are best suited to your requirements
Submitting the Proof of Income

 Salary Slip of the past 3 months

Account Statement of past 6 months IT- Returns (last 2 years)

Ensuring your repaying capacity 
Submitting Proof Of Identity and Address KYC Documents ( Aadhaar Card, Voter Card, Ration Card, PAN Card etc.) Ensuring your Indian Citizenship
Credit Record PAN Card The bank checks credit history to make sure you’re not a ‘risky borrower’
Vehicle details Sales Receipt of the car purchased from the showroom Confirming the price of the car
Car Insurance Proof and DL Attach a copy of car insurance and Driving License Establishing the legal requirements are fulfilled or not

How to Calculate your Car Loan EMI?

The Equated Monthly Installments (EMI) that you will pay depends on some key factors. These are:

  • The amount of the loan
  • The rate of interest that applies to the loan
  • The period of the loan
  • The processing fees (if any)

The higher the amount of your loan, the higher will be the amount of your EMI. EMI amount is also inversely proportional to the loan tenure. To find the best offers between an affordable and low-interest EMI and duration you should check out our car loan EMI calculator. 

Car Loan Features and Interest Rate

In India, the following benefits are there when you take a Car Loan. 

*The following is a general viewpoint on the advantages offered by car loans*

Each Bank may have highly specialised and customised offers for their customers.

  • It helps you in buying the car even if you do not have entire funds as of now. Most car loans will be provided on the on-road price of the car.
  • Some loans will be provided up to 100% of the on-road price, implying there are no down payments. With some banks offering loan amount in crores, you are not limited in your choice of cars
  • Car loans offered in India have secured loans. The vehicle that you buy is the security against the loan. Getting an automobile loan is usually straightforward when compared with other loan products. Individuals with slightly low CIBIL scores can also hope to take one. However, it depends majorly on the service provider. 
  • Car loans in India often offer a fixed rate of interest option. This means that you only have to pay a fixed amount for the loan every month. Rate of Interest offered is based on the borrower’s credit score. The starting Car Loan Interest Rate is 8.50% p.a.

Top Car Prices in India 2020

Maruti Suzuki

Car Model Ex-Showroom Price
Alto Rs.2,88,689 to Rs.4,09,190
Alto K10 Rs.3,60,843 to Rs.4,39,777
Celerio Rs.4,26,289 to Rs.5,38,000
Celerio X Rs.4,75,198 to Rs.5,52,350
DZire Rs.5,82,613 to Rs.9,52,622
Eeco Rs.3,80,800 to Rs.6,84,000
Ertiga Rs.7,54,689 to Rs.11,20,689
S-Presso Rs.3,69,000 to Rs.4,91,000
Swift Rs.5,14,000 to Rs.8,84,000
Vitara Brezza Rs.7,62,742 to Rs.10,37,742
Wagon R Rs.4,42,000 to Rs.5,91,000

Mahindra

Car Model Ex-Showroom Price (Delhi)
XUV300 Rs.8.10 lakh to Rs.12.69 lakh
Marazzo Rs.10 lakh to Rs.14.77 lakh
XUV500 Rs.12.31 lakh to Rs.18.63 lakh
Scorpio Rs.10 lakh to Rs.16.63 lakh
Alturas G4 Rs.30.70 lakh
Bolero Power+ Rs.7.86 lakh to Rs.8.86 lakh
TUV300 Rs.8.54 lakh to Rs.10.55 lakh
KUV100 NXT Rs.5.32 lakh to Rs.7.95 lakh

Honda

Car Model Ex-Showroom Price (Delhi)
Brio Rs.4,73,245
Amaze Rs.5,93,000
Jazz Rs.7,45,000
WR-V Rs.8,15,000
City Rs.9,91,000
BR-V Rs.9,52,900
All-New Civic Rs.17,93,900
All-New CR-V Rs.28,27,00
Accord Hybrid Rs.43,21,237

Loan Approval – Steps you should follow to Get the Loan Approved Faster

When you want to receive money to purchase a new or used car that you have decided to buy, it is better that you choose a pre-approved loan. To avail such a car loan, you can simply follow a few steps to receive the required amount quickly.

  • Check Your Credit Report: You can always check your CIBIL report to verify your position in terms of credit score. A credit score of 750 or more can get you low-interest rate. The interest rate for a credit score of 650 to 750 will be slightly higher. If you have defaulted in your CIBIL report, or have a poor credit score, your loan application may be rejected by the lenders.
  • Pay Your Bills on Time: Availing a car loan to buy your dream car, you should have a fixed minimum monthly pre-tax income and a manageable DTI (debt-to-income ratio). While it is not possible to change one’s income in most cases, you can improve your DTI by clearing off all your due credit card bills or outstanding dues. To create a good credit profile, you should always pay your outstanding bills on time.
  • Look out for Car Loan Options: There are multiple options available in the market through which you can get a car loan to purchase your new or used car. You should check the best car loan interest rates of different car financing firms and banks to find the one that compliments your needs.
  • Borrow Minimum Funds: By paying a more significant amount upfront as the down payment for the car, you can reduce the amount that you will need to borrow to match the price of the vehicle you have selected. If you borrow less amount of funds, you will be in a position to repay your loan quickly or as early as possible since a smaller loan amount means lower EMIs.
  • Make Sure to Select a Plan That Fits Your Pocket: The repayment capabilities of an applicant significantly affects the approval of a loan that the applicant has applied for. As you decide to get a car loan to buy the car that you want, you should make sure that you choose the best Plan/ Scheme that you can afford.
  • Pay Attention to the Terms and Conditions of the Loan: A loan that has low monthly Instalments but consists of a longer tenure might not be feasible for you. Before you finalise your Loan scheme, you should always try to opt for the best programme that has the lowest interest rate and the shortest tenure for the loan as possible.
  • Get an Insurance with Complete Coverage: When offering a car loan, the main point of concern of NBFCs and banks is not to incur any losses or default. Therefore, having full-cover insurance is a requirement for many organisations before sanctioning a loan because it helps recover the balance debt in case of an accident wherein the borrower is at fault or not able to payback.

Prepaying Your Car Loan

You can repay your Car Loan amount in Equated Monthly Instalments (EMIs) till the end of the loan tenure. But, if you decide to pay off the outstanding loan amount before your car loan tenure ends, you will have to foreclose or prepay your loan. Most Banks offers the foreclosure/prepayment option for a penalty fee though some Banks may allow you to foreclose/prepay your loan without charging you any extra cost.

You can prepay your loan if your income has increased and you wish to clear off your car loan liability. It also takes away your responsibility to make monthly payments. Foreclosing a car loan will release the car as collateral and give you full ownership and documents.

Bank
Processing Fee
Prepayment Charges
HDFC Bank Car Loan
(1999 - 4999) + Tax
2%, Nil foreclosure charges after 24 months
Axis Bank Car Loan
1 % to 2.50%
Nil
ICICI Bank Car Loan
0.25% to 1.50%
2%, Nil foreclosure charges after 36 months
SBI Car Loan
500/- to 0.50%
Nil
Kotak Car Loan
1% to 2%
2.25% of fore closure amount if closed 1 month ahead of the tenure.
IIFL Car Loan
Nil
Nil
Muthoot Car Loan
Nil
Nil
Manappauram Car Loan
Nil
Nil
PNB Car Loan
0.70% to 1%
Nil
Canara Bank Car Loan
1%
Nil
Andhra Bank Car Loan
Nil
Nil

 

To check Personal Loan Interest Rate for all major banks you can visit: Car Loan Interest Rates

Fees and Charges on Car Loan

Category
Details
Processing Charges
1999 - 4999 + Tax
Prepayment 
No prepayment is allowed until 12 EMIs are paid
Preclosure
No foreclosure is allowed until 12 EMIs are paid
Prepayment Charges
13-24 months: 2% of loan principal outstanding
>36 months: Nil Charges
Stamp Duty
As per state laws
Cheque Bounce Chgs
₹ 550/chq +  GST
Floating Rate of Interest
Not Applicable
Overdue EMI Interest
2% p.m.(on overdue amount)
Amortisation Schedule Chgs
Rs 200 + GST

Top-Up on Your Car Loan

After taking a car loan, if you need additional funds for purposes such as a home renovation, wedding, etc., you are eligible to get a top-up loan on your ongoing car loan. You can avail a maximum of 150% of the car’s value as a top-up loan. Most banks that offer a top-up on their car loans require you to maintain a clear payment record for at least 9 months with minimal documentation.

Some of the banks that offer top-up loans on their car loans are HDFC Bank, Axis Bank, ICICI Bank, and Kotak Mahindra Bank.

Car Refinancing

When you take a new top-up loan to pay off the pending balance on your existing loan, it is called car refinancing. You can refinance your car loan if you want to replace your current car loan with better features such as low-interest rates, etc., or simply to change the terms and conditions of your existing car loan. The most common reason why people choose to refinance their loans is to save money.

When refinancing a loan, you can avail of a new loan that offers low-interest rates than the ongoing loan which saves you money. You can also reduce your EMIs (equated monthly instalments) by choosing a longer repayment tenure with a new Bank through car refinancing.

However, refinancing your car loan does not make sense if you have already made a significant repayment of your original loan amount if the value of your car has depreciated, the prepayment penalties on loan are high, and if you have plans to apply for a new loan in the future as refinancing can affect your CIBIL score negatively.

FAQs About Car Loan

✅ What sum would I get as the car loan?

Ans. The funding sum contrasts from one bank to the next and relies upon different conditions including the qualities of your car and loan necessities. Be that as it may, the base loan sum will be equivalent to Rs.1, 00,000 much of the time.

✅ What happens if I wish to pre-pay the whole loan sum?

Ans. Banks offer an alternative of prepaying the whole car loan sum and save money on imperative premium instalments later on. Nonetheless, most banks permit pre-instalment simply after the finish of a half year of the loan residency. Likewise, a little expense as pre-instalment penalty fee will be chargeable by the bank.

✅ Is the car loan interest rate negotiable?

Ans. Much of the time, the car loan interest rate is negotiable depending on your FICO rating, record and past relationship with the money lenders.

✅ What car loan reimbursement tenures are usually there?

Ans. Ordinarily, all banks offer reimbursement tenures going from a year to 7 years relying on the loan sum and client’s reimbursement capacities.

✅ Is a guarantor obligatory for another car loan?

Ans. No, for the most part, a guarantor is required just on the off chance that you can’t meet at least one of the qualification measures indicated by the lender.

✅ Do I need a guarantor while applying for a car loan?

Ans. Most banks don’t request a guarantor if there should be an occurrence of both new and trade-in vehicle loans yet if your salary doesn’t meet the set qualification models, the bank may expect you to include your parent or life partner as a co-candidate.

✅ Which cars are financed via car loan establishments in India?

Ans. All little to medium-sized cars, Sports Utility Vehicles (SUV) and Multi Utility Vehicles (MUV) go under the car loans funds accessible in India. In any case, there might be special cases, enquire about the equivalent at the hour of the car loan application or allude to the loan manual.

✅ Would I be able to acquire an extra loan on my second-hand car loan?

Ans. Various banks offer renegotiating choice or getting an extra loan over a second-hand car loan. The estimation of the car can be recovered into money to meet your prompt fiscal prerequisites. In a perfect world, 80%-85% of the car’s valuation sum be availed.

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