Whether you're buying a new hatchback, a family SUV, or a used vehicle — a car loan lets you drive away today and repay comfortably over time with structured EMIs.
A car loan is a secured retail financing product where the vehicle being purchased serves as the collateral for the loan. Because the asset is pledged, lenders typically offer more competitive interest rates compared to unsecured products like personal loans.
The loan amount is determined based on the on-road price of the vehicle, the applicant's income and repayment capacity, and the loan-to-value (LTV) ratio set by the lender. New cars generally attract higher LTV and better rates than used ones.
Once the loan is fully repaid, the hypothecation on the vehicle's RC book is removed and the car transfers completely to your name without any lender charge.
Choose the right variant based on the vehicle type and your financing goal.
Finance a brand-new vehicle straight from the showroom. Enjoy the best interest rates, highest LTV (up to 100% on-road), and longest available tenure.
Finance a certified pre-owned vehicle through a dealer or private sale. LTV is typically 70–85% of vehicle valuation with slightly higher rates.
Special financing for EV purchases with subsidised rate schemes under government incentive programmes. Includes battery and charging infrastructure in the loan amount.
With competitive rates and flexible structures, a car loan lets you preserve your savings while driving the vehicle you need today.
Instead of depleting your liquid savings on a large upfront purchase, a car loan lets you spread the cost over a comfortable tenure.
Since the vehicle is pledged as security, car loans carry lower interest rates than unsecured products — typically starting from 7.9% p.a.
Repayment periods of up to 84 months (7 years) keep monthly EMIs affordable even for higher-value vehicles.
Many lenders finance the complete on-road cost including insurance, registration fees, and accessories — reducing your upfront cash requirement.
Timely EMI repayments on a car loan improve your CIBIL score and establish a solid credit track record for future borrowing.
Pay off the loan early after the lock-in period and save on interest. The hypothecation is removed from your RC once the loan is closed.
Rates vary based on vehicle category, age, CIBIL score, and income profile.
| Vehicle Type | Rate Range (p.a.) | Max LTV |
|---|---|---|
| New Car (EV) | 7.5% – 9.0% | Up to 100% |
| New Car (Petrol/Diesel/CNG) | 7.9% – 10.5% | Up to 100% |
| Used Car (up to 5 yrs old) | 10.5% – 13.5% | Up to 85% |
| Used Car (5–10 yrs old) | 13.5% – 17% | Up to 70% |
| Commercial / Taxi Use | Case by case | As per lender norms |
See how a car loan compares with alternatives commonly used for vehicle purchase.
| Feature | Car Loan | Personal Loan | Dealer Finance |
|---|---|---|---|
| Interest Rate | ✓ 7.9%+ | 10.5%+ | 9%+ (varies) |
| Collateral | Vehicle hypothecation | ✓ None | Vehicle hypothecation |
| Max Tenure | ✓ 84 months | 60 months | 60 months |
| LTV | ✓ Up to 100% | Lump sum | 80–90% |
| Processing | 48 hrs | ✓ 24–48 hrs | Same day |
| Flexibility | Vehicle only | ✓ Any use | Vehicle only |
These are general indicators for most lenders. Final eligibility is confirmed after a full profile review.
How your credit score shapes the offer you receive
Choose the car you want — new from a dealership or pre-owned from a certified seller
Share your income, employment details, and CIBIL score for a quick eligibility assessment
KYC documents, income proof, and vehicle invoice or valuation report are collected
Loan is disbursed directly to the dealer; RC is issued with lender hypothecation noted
Requirements vary by lender and vehicle type. Confirm the exact list with our team before submitting.
Adjust the loan amount, interest rate, and tenure to see your likely monthly EMI and total interest outgo before you apply.
Rates are indicative and subject to change. Contact us for current offers based on your profile and vehicle choice.
| Lender | Interest Rate | Max Amount | Max Tenure | Processing Fee | Disbursal | Best For |
|---|---|---|---|---|---|---|
| South India Loans | From 7.9% | ₹1Cr | 84 months | 0.5%–1% | 48 hrs | Best Overall |
| HDFC Bank | 8.75%–13% | ₹3Cr | 84 months | Up to 0.5% | Same day | Fastest |
| SBI Car Loan | 8.65%–10.65% | No upper cap* | 84 months | ₹1,000–₹10,000 | 3–5 days | Lowest Rate |
| ICICI Bank | 8.85%–12.5% | ₹1Cr | 84 months | Up to 2% | 2–3 days | Salaried |
| Axis Bank | 8.75%–11.25% | ₹1Cr | 84 months | Up to 1.5% | 2–3 days | Used Cars |
| Kotak Mahindra Prime | 8.99%–14% | ₹75L | 60 months | Up to 2% | 3–4 days | Self-Employed |
ℹ️ Rates are indicative and sourced from publicly available information. Actual offers depend on vehicle type, CIBIL score, and individual profiles. South India Loans partners with multiple lenders to find you the best offer.
Share your requirement with our team and we'll match you with the best car loan offer based on your profile and vehicle choice.