Buying a car is like navigating a new route. The numerous options make the journey exciting, but without a handy guide, it can be easy to lose your way.
From brand new cars to second-hand vehicles, there are choices aplenty and with various loans and financing plans available, getting one is simple and convenient.
But before you go about applying for a car loan, it is important to understand the diverse types available. Read about the features of these loans, the simple car loan eligibility criteria, and the charges you are likely to incur with this handy guide.
Types of car loans in India today
New Car Loan
As the name suggests, this is a type of loan offered to customers looking to buy a brand new car. These loans come with very simple eligibility criteria and require just a few basic documents. Applications are a breeze and you can get financing of up to 100% of on-road price of your new car.
Bajaj Finance offers new car loans of up to Rs. 10 crore with flexible repayment tenures.
Know more about our New Car Loans
Used Car Loans
The used car or second-hand car market can be a source of great value. Apart from regular hatchbacks and mini-SUVs, you are also likely to find sedans, premium SUVs, and more without breaking the bank. To help you finance your second-hand car purchase, we offer used car loans of up to Rs. 1.02 crore.
With flexible repayment tenures from 12 months to 84 months, you can repay the loan at your convenience.
Read about Used Car Loans from Bajaj Finance
Now that you know about the two primary types of car loans available, let’s take a look at a few key factors that you need to take stock of before you avail of one.
Features and benefits of car loans
Here are the main benefits of getting a car loan from Bajaj Finance:
Sizeable loan amounts
Like we said earlier, we offer new car loans of up to Rs. 10 crore and used car loans of up to Rs. 1.02 crore. Money need not hold you back when it comes to your dream car.
- Convenient repayment tenures
We also offer flexible repayment plans to help you pay back the loan comfortably. For instance, new car loans come with tenures of 12 months to 96 months while used car financing has tenures of 12 months to 84 months.
- Lightning quick approvals
Gone are the days of queueing up at the bank and dealing with tiresome verification processes. We offer loans with instant approvals and minimal documentation. So that you can get your car without any delay.
Flexi Loan facility
Benefit from flexible monthly instalments with our Flexi Loans option.
Pay interest-only EMIs during the initial tenure of your loan and manage your repayment with our Flexi Hybrid Loan.
- 100% on-road funding
Whether you choose a new car loan or a used car loan, you can get funds up to 100% of the car value.
- Exclusive pre-approved offers
Our existing customers as well as new applicants may be eligible for exciting pre-approved offers on car loans.
Eligibility criteria for car loans
You only need to meet a few basic parameters to be eligible for a car loan.
- Nationality
You should be an Indian citizen to be eligible for a car loan from Bajaj Finance. - Age
To get a new car loan, you need to be between 18 years and 80 years*. For a used car loan, you must be between 18 years and 80 years* of age. - CIBIL Score
While an excellent credit score is ideal, customers with a CIBIL Score of 700 or higher can qualify for a car loan from Bajaj Finance. - Employment
For a new car loan, salaried individuals should have a minimum monthly income of Rs. 25,000. Self-employed individuals are asked to submit ITR proofs of the past 2 years.
For used car loans, salaried individuals should have at least 1 year of work experience and a minimum monthly income of Rs. 20,000. Self-employed individuals must submit ITR proof of the past 2 years.
*Higher age limit is applicable at the time of loan maturity.
Documents required for a car loan
Getting a car loan from Bajaj Finance is quite easy. You will be asked to share your KYC documents (any one of your Aadhaar/ passport/ voter ID/ driving license/ letter from NPR/ NREGA job card should do).
Aside from this, you will need to submit your PAN card, your employee ID card, your salary slips, and bank statements.
In the case of a used car loan, you will also be asked to submit your vehicle registration certificate and a copy of the car insurance. This is to ensure that the pre-owned car you are buying is in order.
Please note, some customers may be asked to submit a few additional documents during the loan application process.
Interest rates applicable on car loans
The interest rate applicable varies on the type of car loan you have opted for. For new car finance, you are likely to be charged interest of 0% to 14% p.a.
If you are applying for a used car loan, you are likely to bear interest rate of 10% to 19% p.a.
Loans against cars are offered with interest rates starting 10.50%.
By now you have a clearer picture of the types of loans available to buy the car of your choice.
Conversely, if you already own a car, you may check out our loans against car and a car loan balance transfer.
With our loan against car, you can borrow funds against your car while a balance transfer lets you switch your existing car loan to us at better terms.
When you choose Bajaj Finserv Loan Against Car, you can get up to Rs. 77 lakh while our car loan balance transfer comes with a high-value top-up loan and competitive interest rates.
