What is the difference between a new car loan and a used car loan?

New car loans typically offer lower interest rates (7.5-14% p.a.) and longer tenures (up to 7 years) since the car serves as collateral with higher resale value. Used car loans have slightly higher rates (10-17% p.a.) and shorter tenures (up to 5 years) due to depreciation. PaisaWay helps you compare both types.

What is the maximum car loan amount I can get?

For new cars, you can typically get up to 90-100% of the ex-showroom price, up to ₹1 Crore. For used cars, lenders usually finance 75-85% of the car's current market value, up to ₹40 Lakhs depending on the car's age and condition.

What documents are required for a car loan?

You'll need: PAN card, Aadhaar card, last 3-6 months bank statements, salary slips (for salaried), ITR (for self-employed), address proof, and vehicle details (proforma invoice for new cars, RC copy for used cars).

How old can a used car be to qualify for a loan?

Most lenders finance used cars that are up to 5-7 years old at the time of purchase. The total age of the car at the end of the loan tenure should generally not exceed 10-12 years. Newer used cars get better rates and higher loan amounts.

Can I prepay my car loan early?

Yes, most lenders allow prepayment after 6-12 months. Floating rate car loans have no prepayment charges as per RBI guidelines. Fixed rate loans may attract a foreclosure fee of 2-5% on the outstanding principal.

Car Loan in India - New & Used Car Loans from 7.5% | PaisaWay

Interest Rate

From 7.5%

Loan Amount

Up to ₹1 Cr

Tenure

Up to 7 years

Showing 8 car loan offers

Maruti Suzuki Finance

Most PopularNew Car

4.2(9,800 reviews)

Interest Rate

7.5% - 12%

Loan Amount

₹2L - ₹50L

Tenure

12 - 60 months

Processing Fee

Nil

Zero processing feeDealer integrationHassle-free processSpecial schemes

24 hours

State Bank of India

Best RateNew & Used

4.3(21,500 reviews)

Interest Rate

8.25% - 12.5%

Loan Amount

₹1L - ₹1.0Cr

Tenure

12 - 84 months

Processing Fee

0.5% + GST

Lowest ratesGovt. bank trustUp to 90% fundingLong tenure

3-5 days

HDFC Bank

4.5(18,200 reviews)

Interest Rate

8.5% - 14%

Loan Amount

₹1L - ₹1.0Cr

Tenure

12 - 84 months

Processing Fee

Up to 0.5%

Quick processingMinimal documentationFlexible EMI100% on-road funding

24-48 hours

ICICI Bank

Fastest Approval

4.4(14,600 reviews)

Interest Rate

8.7% - 13.5%

Loan Amount

₹1L - ₹80L

Tenure

12 - 84 months

Processing Fee

Up to 0.5%

Instant approvalDigital processPre-approved offersTop-up facility

4 hours

Tata Capital

New & Used

4.3(7,200 reviews)

Interest Rate

8.75% - 14%

Loan Amount

₹1L - ₹75L

Tenure

12 - 72 months

Processing Fee

Up to 1%

Trusted brandDigital KYCFlexible repaymentUsed car expertise

48-72 hours

Axis Bank

New & Used

4.2(8,900 reviews)

Interest Rate

8.9% - 14.5%

Loan Amount

₹1L - ₹75L

Tenure

12 - 84 months

Processing Fee

0.5%

Competitive ratesQuick processingOnline applicationDoorstep service

2-3 days

Why Choose PaisaWay for Car Loans?

Your trusted partner for car financing

Best Rates

Interest rates starting from 7.5% p.a. for new cars

Quick Approval

Get approval in as little as 4 hours

No CIBIL Impact

Eligibility check doesn't affect your score

1 Lakh+ Users

Trusted by car buyers across India

Frequently Asked Questions

Common questions about car loans

Find the Best Car Loan

Maruti Suzuki Finance

State Bank of India

HDFC Bank

ICICI Bank

Tata Capital

Axis Bank

Why Choose PaisaWay for Car Loans?

Best Rates

Quick Approval

No CIBIL Impact

1 Lakh+ Users

Frequently Asked Questions

Ready to Get Your Car Loan?

Find the Best Car Loan

Maruti Suzuki Finance

State Bank of India

HDFC Bank

ICICI Bank

Tata Capital

Axis Bank

Why Choose PaisaWay for Car Loans?

Best Rates

Quick Approval

No CIBIL Impact

1 Lakh+ Users

Frequently Asked Questions

Ready to Get Your Car Loan?