Applicable fees and charges
Type of fee |
Applicable charges |
Rate of interest |
Up to 14% p.a. |
Processing fees |
Up to 2.95% of the loan amount (inclusive of applicable taxes). |
Documentation charges |
Up to Rs. 2,360 (inclusive of applicable taxes). |
Flexi facility charge |
Term Loan – Not applicable Flexi Loan variant (as applicable below) - will be deducted upfront from the loan amount
*Loan amount includes approved loan amount, insurance premium, VAS charges, and documentation charges. |
Prepayment charges |
Full prepayment (foreclosure)
Part-prepayment
|
Annual maintenance charges |
Term Loan - Not applicable Flexi Term Loan
Flexi Hybrid Loan
|
Bounce charges |
Rs. 1,500 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
Penal Charge |
Delay in payment of instalment(s) shall attract Penal Charge of Rs. 20 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
Stamp duty (as per respective state) |
Payable as per state laws and deducted upfront from the loan amount. |
Legal, and incidental charges |
Recovery of charges |
Repossession charges |
Recovery of charges maximum up to Rs. 50,000 (Inclusive of applicable taxes) |
Auction charges |
Recovery of charges |
Valuation charges |
Recovery of charges |
Stockyard charges |
Rs. 118 per day for 60 days (inclusive of applicable taxes) |
NOC for interstate transfer |
Rs. 1,180 (inclusive of applicable taxes). |
NOC to convert from private to commercial |
Rs. 3,540 (inclusive of applicable taxes). |
Other NOC |
Rs. 1,180 (inclusive of applicable taxes). |
Broken period interest/ pre-EMI interest |
“Broken period interest/ pre-EMI interest” shall mean the amount of interest on loan for the number of day(s), which is(are) charged in two scenarios: In this scenario, broken period interest is recovered by the following method: For Term Loan, Flexi Term Loan, and Flexi Hybrid Loan: Added to the first instalment amount |
| Loan cancellation charges |
Up to Rs. 2,360 (inclusive of applicable taxes). Note - In the event of loan cancellation, customer shall also bear the interest accrued on the loan till the date of cancellation and stamp duty charges levied on loan at the time of loan origination. |
What is a car loan interest rate
A car loan interest rate is the percentage charged by a lender on the amount borrowed to purchase a vehicle. It represents the cost of borrowing money and is typically expressed as an annual percentage rate (APR). This rate determines how much you will pay in addition to the principal (the amount you borrow) over the term of the loan. The car loan interest rate depends on factors such as your credit score, loan term, the vehicle's age, and the lender’s policies. A higher interest rate increases your monthly payment and the total cost of the loan over time. Bajaj Finance offers competitive new car loan interest rates of up to 14% p.a.
Factors affecting car loan interest rates
Several key factors directly influence car loan interest rates, affecting the cost of financing a vehicle:
- Credit score: One of the most significant factors determining car loan interest rates is the borrower's credit score. A higher credit score indicates a history of responsible credit management, leading to lower interest rates. Conversely, lower credit scores often result in higher interest rates to compensate for perceived higher risk.
- Loan amount and tenure: The amount of money borrowed, and the duration of the loan are crucial factors in determining car loan interest rates. Larger loan amounts or longer loan tenures typically come with higher interest rates, as they represent greater risk for lenders.
- Down payment: The size of the down payment made by the borrower plays a significant role in determining new car loan interest rates. A larger down payment reduces the loan amount, thereby lowering the lender's risk. This reduction in risk often translates into lower interest rates for the borrower.
- Income and employment history: Lenders assess the borrower's income stability and employment history to gauge their ability to repay the loan. Stable income sources and longer employment tenures generally lead to lower new car loan interest rates, as they indicate a lower risk of default.
- Debt-to-income ratio: Lenders also consider the borrower's debt-to-income ratio (DTI), which compares the borrower's monthly liabilities to their gross monthly income. A lower DTI suggests that the borrower has sufficient income to cover additional debt, potentially resulting in lower interest rates.
Understanding these factors is essential for borrowers seeking to secure the most favourable car loan interest rates. By focusing on improving their credit score, making a substantial down payment, maintaining a stable income, and managing debt responsibly, borrowers can enhance their eligibility and access competitive interest rates from lenders.
How to apply for new car finance
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Frequently asked questions
For a Bajaj Finance New Car Loan, the processing fee can go up to 2.95% of the loan amount. This is inclusive of applicable taxes.
On the part-payment amount paid, there is a fee of up to 4.72% (inclusive of applicable taxes). However, there are no part-prepayment fees if you apply for one of our Flexi Loan options.
When an EMI payment cannot be completed because of inadequate funds, a bounce charge is levied. We charge Rs. 1,500 per bounce.
“Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.
Please note that any delay in payment of instalment(s) shall attract penal charge of Rs. 20 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.
You can get a Bajaj Finserv New Car Loan at a reasonable interest rate of up to 14% p.a.
You can pay back your new car loan within 12 months to 96 months. You can therefore spread out your EMIs over a maximum of 8 years.
To secure a lower interest rate on a new car loan, focus on improving your credit score by paying bills on time and reducing outstanding debt. Make a larger down payment to decrease the car loan amount and reduce the lender's risk. Compare offers from multiple lenders and negotiate terms based on your creditworthiness and financial stability. Additionally, consider opting for a shorter loan term, as shorter terms often come with lower interest rates.
Your creditworthiness, income stability, and willingness to make a substantial down payment are some of the ways that can help you negotiate your car loan interest rates.
Your credit score significantly influences your car loan interest rate. Higher credit scores generally qualify for lower interest rates, saving you money over the loan term. Lower scores may result in higher rates or even difficulty securing a loan. Lenders use credit scores to assess risk; a strong score signals reliability in repayment, whereas lower scores suggest higher risk.
Your car loan interest rate is determined by several factors such as the loan term, credit score, loan amount you wish to borrow and more. You can use our online new car loan EMI calculator to evaluate your monthly instalments in advance. This calculator will also help you to find the overall interest amount you need to pay.
The type of car you choose generally doesn’t impact the interest rates for a new car loan. However, the loan amount can play a significant role. If you're considering a high-end model that requires a larger loan, this may influence the interest rates offered by lenders. So, while the car's type is less of a factor, the loan amount certainly matters. Apart from the loan amount, there are other factors that influence car loan interest rates. These include tenure, credit score, downpayment amount and more.
Bajaj Finance offers new car loans at competitive car loan interest rates of up to 14% p.a.
Car loan interest rates in India are determined by factors such as the borrower’s credit score, loan tenure, the loan amount, lender policies, and prevailing market interest rates.
The interest rate directly affects your car loan EMI (Equated Monthly Installment). A higher interest rate increases your EMI, making monthly payments more expensive, while a lower interest rate reduces your EMI, lowering your monthly financial burden. However, a higher interest rate also means you will pay more over the life of the loan, even if the EMI is lower. Balancing interest rates and loan tenure is crucial for managing overall costs.
