Loan Against Car

Loan Against Car is a secured loan where your vehicle, i.e., your car is used as collateral to access quick funds without selling it. Lenders can finance up to 200% of the car’s value, depending on factors such as the features of the car, applicant’s credit profile, etc. Proceeds of the loan can be used for any purpose, except for speculative activities. With no end use restriction, quick processing and minimal documentation, Loan Against Car can be a hassle-free credit solution for funding urgent financial needs --- all while you continue to use your car.

Features & Benefits of Loan Against Car

The key features and benefits offered on Loan Against Car are listed as below:

• Loan amount of up to 200% of the car’s value; varies across lenders
• Repayment tenure of up to 5 years
• No end use restriction except for speculative activities
• Pre-approved offers for select existing customers
• Top up loan facility for meeting additional fund requirements
• Minimal documentation for pre-approved customers
• Instant or same-day disbursals for existing customers

Loan Against Car Interest Rates

The interest rates on Loan Against Car may vary from one lender to another. The final interest rates offered would depend on various factors including the applicant’s credit profile, lender’s internal risk policies and features of the pledged car such as its age, make, condition, etc.

Loan Against Car EMI Calculator

A Loan Against Car EMI Calculator helps you estimate the monthly instalments you’ll need to pay when you take a loan against your existing car. By entering basic details like loan amount, interest rate and tenure, you will be able to get a clear idea of your EMI and plan your finances better. It’s a quick and handy tool to ensure the loan fits your budget before you apply. Individuals can use various combinations of interest rates, loan amounts and tenures to ascertain the optimum tenure and EMI after considering their loan repayment capacity.

Eligibility Criteria for Availing Loan Against Car

The eligibility criteria for availing Loan Against Car varies across lenders. However, a common set of eligibility criteria is given below:

Which Cars/Vehicles Are Eligible?

It varies from lender to lender. While some offer loans only against passenger vehicles, others may also accept commercial vehicles. However, here are some general eligibility norms:

• Privately registered, owned vehicles
• Popular brands/models still in production
• Well maintained vehicles, not too old (usually it shouldn’t be over 10 years)
• Clear ownership (valid RC & insurance)

Who Should Consider Availing Loan Against Car?

• Car owners who need funds urgently – Whether it’s for a medical emergency, unexpected expense or planned purchase, you can unlock the value of your car without having to sell it.
• Those seeking an alternative to personal loans – Since this is a secured loan, it often comes with lower interest rates compared to unsecured options.

Loan Against Car Processing Fees and Other Charges

Loan Against Car processing fees may vary widely based on lenders and credit profiles of loan applicants. To give a fair idea of the key fees and charges, read the table below: