Apply for Car Loan Online: Benefits, Eligibility and Interest Rates

Do you want to take a car loan? The car loan application has become a need! Various financial institutions offer instant car loans at a low-interest rate. You can easily apply for a car loan and get 100% financing on selected models. The interest rate starts from 7 per cent per annum with a repayment tenure of up to 8 years. This article will provide information on how to get a car loan, benefits, interest rates, and eligibility.

How to Apply for Car Loan Online?

Many financial institutions provide you with numerous car loan offers. Hence, you must read and compare the offers and select the one you need. Follow the below-mentioned steps to apply for a car loan:

You can visit the website and download the mobile app. Go to the car loan.
Check EMI and car loan eligibility and look for an EMI calculator.
After checking the loan amount and eligibility, click apply
Submit the required documents. Also, check documents as they may vary from lender to lender.
You can link your account so that the amount is credited from the bank account.
The lender checks your credit score and eligibility and verifies submitted documents.
The timeframe between approval of loan application and disbursal varies from bank to bank.
After online car loan approval, the loan amount gets credited to your account.
The interest and amount depend on the repayment capacity and credit history.

Compare Best Car Loan Interest Rates in India for 2025

The car loan interest rate in India offered by various banks are listed below. Here, we are discussing interest rates and processing fees offered by them.

| Bank Name | Car Loan Interest Rates | Processing Fee | | ------------------ | --------------------------- | ----------------------- | | Axis Bank Car loan | 8.55% p.a. onwards | From 3,500 to 7,000 INR | | Bank of Baroda | 8.70% p.a. onwards | 1,500 INR | | Canara Bank | 9.15% p.a. onwards | 1,000 to 5,000 INR | | SBI | 8.60% p.a. onwards | NA for a new car | | Federal Bank | 11.00% p.a. onwards | Contact bank |

Calculate Your Car Loan EMI

The car loan eligibility calculator helps you calculate eligibility for a car loan. After you have checked the credit score, you can calculate EMI according to the specimen.

| Loan Amount | 700,000 INR | | ---------------- | --------------- | | Rate of Interest | 9.9% | | Tenure | 36 | | Monthly EMI | 22,554 INR | | Total Interest | 1,11,951 INR | | Total Amount | 8,11,951 INR |

Factors to Consider While Availing of The Best Car Loan

Certain vital factors must be taken into account before taking a car loan

Credit Score- The credit score plays an important role in loan offers and eligibility. With a score above 750, ensure you get low interest on car loans. A poor score may lead to the rejection of a loan application and high interest. You can get the loan even if you score under 750 based on your profile.
Interest Rate- The car cost is the loan amount and interest paid in the given time. You can pick the best car loan rate from the flat and floating interest rate. You can check and compare rates provided by lenders and select the one as per your need.
Pick a Defined Timeline- Once the loan amount gets decided, now time duration needs to be decided. The car loan eligibility calculator can support evaluation eligibility and EMI for repaying the loan. A long duration means a high-interest rate, while a small duration means a low-interest rate. Hence, always pick low repayment time.
Prepayment Offers- You might be able to close the loan before the time. Hence you must know about prepayment offers. Pick the lender that doesn't charge the penalty for foreclosure.
Car Loan fees- You must know about stamp duty and processing fees. You can also check offers on charges to save the cost. You must compare and check the terms and conditions and then apply for a car loan.
Car Insurance- You must also compare the car insurance options and select the best one.
Pre Approved Car Loan- If you get a pre approved car loan, you can negotiate terms and conditions with the lender.

It would help if you considered the above factors for India's best car loan interest rate.

Documents Required for Car Loan

The documents required for a car loan are discussed below:

Age Proof- PAN card and birth certificate
Identity Proof- PAN card, Aadhaar card, passport or Voter ID
Address Proof- Aadhaar card, passport and utility bills
Passport size colour photograph
Income Proof- Form 16 or Salary slips

Eligibility for Applying for Car Loan

You can evaluate car loan eligibility as discussed below:

Must be an Indian citizen
You must have PAN and Aadhaar card
The minimum age is 18 years, and the maximum age is 65 years for a car loan
He must be self-employed or salaried.
Must have a stable income
The minimum monthly income must be around 20,000 INR.
The credit score is above 750.

Features and Benefits of Car Loans Online

Financial institutions provide various benefits through car loans. The lenders also offer personalised car loans as per your need. It would help if you considered the advantages of car loans online.

Less documentation- Minimal documents like PAN card, Income proof and Aadhaar card is required.
Fast Approval- Online car loan approval is easy and fast. The application gets fast approval, and funds are credited to the bank.
Low-Interest Rate- You must be thinking about how to get a car loan. Then you may get the car loan at low interest if your CIBIL score exceeds 750.
Flexible Repayment- You can personalise your repayment plan at your convenience. Select EMI and repayment tenure.
EMI Calculator- An online EMI calculator can evaluate the car loan.
Secure Loans- The bank provides a secure loan and the car acts as collateral or security against the loan.
Simple- The car loan is more than other loan products as banks offer car loans at a fixed interest rate and must be paid monthly.
Credit Score- The high score helps to get the loan at a lower rate.

Dos and Don'ts When Applying For a Car Loan

You can apply for a car loan but also take care of Dos and Don'ts mentioned below:

Dos

Select the option offering the best car loan rate.
Go through the insurance premium
Compare offers for applying for the loan.
You must be aware of hidden charges linked with a car loan.
Also, look for car loan offers before applying for the loan.
Check the insurance premium for your car.

Don'ts

Don't apply the loan amount above eligibility as it might enhance loan disapproval.
Please don't go for high maintenance costs as it enhances financial burden.
Please don't rely on dealers, as they might not offer the best interest rates.
Please only apply for a car loan with one bank, which can harm your credit rating.
If your application is approved, then apply with a different bank.
Only select a car with high service expenses; you must already pay EMI and insurance premiums.

Tips to Quickly Get a Car Loan Application Approved

You must follow certain tips for getting quick online car loan approval.

Pay off debts- You must repay the loan as the late payment may affect your credit history and CIBIL score.
Credit Score- You must score above 750 for the best car loan rates.
Complete formalities- If you want instant approval on a car loan, you must make a down payment and other car loan documents. The completion of formalities increases the chances of getting a loan.
Car Loan Options- There are various loan options for used or new cars. You can compare car loan interest rates online and select the one you need.
Borrow less amount- The large amount paid as a down payment may decrease the amount to be borrowed. This way, you can repay the loan at a small EMI in a short time.
Select a plan per your budget- The repayment capacity affects loan approval. Hence, you should select the plan that comes into your budget.
Terms and Conditions- You must analyse the car loan offer and terms. Opt for the loan for a short duration and low-interest rate.
Car insurance with coverage- The main concern of financial institutions is not to incur losses. Hence, you must seek full coverage on the insurance of your car.

Income Tax Benefits on Car Loans Taken to Purchase Electric Vehicles

If you have applied for a car loan to buy an electric vehicle, get a tax rebate of 1.5 lakhs on the interest paid. It was announced in the Union Budget and is part of a government initiative to adopt an environment-friendly solution. You must collect the documents required for a car loan and will get a 2.5 lakh INR benefit on the loan term. The tax rate has also been reduced to 5 per cent.

Conclusion

You can apply for a car loan through various banks or financial institutions. The process is fast, simple, and doesn't require many car loan documents. You can also check eligibility and evaluate EMI, interest rate and duration. We hope this article will help you get low interest on a car loan as needed.

FAQS on Apply for Car Loan Online

What is a Car Loan?

The car loan is given by NBFC or a bank that enables you to buy a car. It has become an essential commodity and necessity. Financial institutions offer the best car loan rate if you have a good credit history.

What is the Car Loan Application Process?

You must submit age, income, address, and identity proof as documents required for a car loan. The banks often take a few seconds to approve the loan, and then funds get disbursed into your account.

What are the documents required for a Car Loan?

The documents required for a car loan for salaried people are a passport, driving license, voter ID card, Aadhaar card, latest salary slip, form 16, and bank statement for the past six months. The car loan documents for the self-employed person are identity or address proof like voter id, licence, passport, latest income proof and bank statement.

What is the minimum credit score I need to get a car loan?

The credit score must exceed 750 to get the best car loan rates. A score under 650 is less to apply for a loan.

What is the lowest EMI I need to pay for a car loan?

You can get a car loan online at 8.55 per cent annually for eight years. The higher the loan amount, the higher will be the EMI.

What is the maximum loan amount I can avail of for a new car loan?

The lenders can offer you the maximum loan of 90 per cent of the vehicle price on the road and a 100 percent loan on the vehicle ex-showroom.

What is the tenure for which I can get a new car loan?

You can get around 7-8 years to repay the car loan.