Main service · Chandigarh & Tricity
Car Loan
For a new or used car, arranged alongside your dealer booking.
In plain words
What a car loan actually is
A car loan covers most of the price of a vehicle so you can pay for it in monthly instalments rather than all at once. The car is usually hypothecated to the lender until the loan is repaid, which is noted on the registration certificate and removed once you close the loan.
Is this you?
Who this is usually for
If one of these sounds like your situation, we can help.
- You have chosen a new car and want the finance sorted before you take delivery.
- You are buying a used car from a dealer or a private seller.
- You would rather keep your savings intact and spread the cost over a few years.
- You want the paperwork handled while you deal with the showroom.
What it covers
What a car loan can be used for
A new car from an authorised dealer
A used car, subject to its age and condition
Refinancing a car you already own outright, where the lender permits it
Work it out
What might the monthly payment look like?
Move the sliders to see how the amount, the rate and the number of years change the monthly instalment. These are your own figures, not an offer.
Monthly instalment
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- Amount borrowed
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- Total interest
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- Total you repay
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Illustrative calculation only. Actual terms may vary by lender and applicant.
Check what you could getWhat affects your case
What lenders generally look at
These are the factors that usually matter. The exact requirements differ from lender to lender, so treat this as a guide rather than a checklist.
- Your income and how regular it is.
- Your credit history and how you have handled repayments before.
- The car itself. For used cars, age and valuation both matter and usually limit how much can be borrowed.
- How much you can put down yourself. A larger down payment usually improves the terms available to you.
Paperwork
Documents usually asked for
An indicative list. We will tell you exactly what is needed for your case before you start collecting anything.
Identity proof and address proof
Recent salary slips, or business and income proof if self-employed
Bank statements covering recent months
Driving licence
Vehicle quotation or proforma invoice from the dealer
Photographs and the completed lender application form
Before you commit
Things worth thinking about
The questions we would want answered if it were our own loan.
- 1Dealer-arranged finance is convenient, but it is worth comparing it against what else is available to you.
- 2Ask whether the quoted rate is flat or reducing. The two are not comparable, and a flat rate costs more than it appears to.
- 3Check the foreclosure terms before signing, in case you want to close the loan early.
- 4Budget for insurance, registration and accessories separately. These are usually not part of the loan.
- 5Once the loan is closed, get the hypothecation removed from the registration certificate.
Questions
Car Loan questions we are asked
Can I get a loan for a used car?
Generally yes, though the age and condition of the car matter. Lenders limit how old a vehicle can be and will lend against its assessed value rather than the asking price. Terms for used cars are usually less favourable than for new ones.
How much down payment will I need?
Lenders finance a portion of the vehicle cost, so you should expect to put down the rest. The exact proportion varies by lender, by the car, and by your profile. A larger down payment usually improves the terms you are offered.
Is the showroom finance the best option?
It is convenient, and sometimes it is genuinely competitive. But it is worth knowing what else is available before you commit, particularly on the rate type and the foreclosure terms. That comparison is a large part of what we help with.
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Related services
Thinking about a car loan?
Tell us what you need and we will explain your options in plain language. There is no charge for that conversation.