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Auto Loan

Drive home your new vehicle

Finance your new or pre-owned car or two-wheeler with flexible tenures and competitive rates.

Check Eligibility Calculate EMI Talk to an Expert

What is Auto Loan?

An auto loan helps you finance a new or used vehicle, which typically serves as security. Approval considers your income, credit profile and the vehicle's value. New cars get lower rates than used ones, and many lenders finance up to 85–100% of the on-road price.

Who it may suit

  • Salaried and self-employed individuals buying a vehicle
  • New or pre-owned car and two-wheeler buyers
  • Those preferring EMIs over a large upfront payment

Documents you'll typically need

  • KYC — PAN & Aadhaar / address proof
  • Income proof (salary slips / ITR)
  • Bank statements
  • Vehicle quotation / proforma invoice

Common reasons for delay or rejection

  • Low credit score or high existing EMIs
  • Incomplete income or vehicle documents
  • Vehicle valuation issues (for used vehicles)
Current Market Rates

Indicative interest rates

Approximate current market ranges as of June 2026. Your actual rate depends on your profile and is decided by the respective bank or NBFC.

Starting from
7.45%
per annum*
Typical market range
7.45% – 11% p.a. (new cars)

For new cars, public sector banks (Canara, Union Bank, Bank of India) currently start lowest, around 7.45%–8.25%. Private banks such as ICICI (~8.40%) and HDFC (~9.40%) are slightly higher. Used-car loans are higher, typically 11%–16%, as resale and repossession risk is greater.

*Indicative current market rates as of June 2026, compiled from publicly available sources. Shah Communication is a financial consultancy — the final interest rate, eligibility and terms are decided solely by the respective bank or NBFC based on your profile.
Good to Know

Charges & eligibility

Actual rates, processing fees and charges vary by lender and are confirmed at the time of application.

📉

Interest Rate

Depends on your credit profile, income and the lender. We help you compare suitable options.

🧾

Processing Fee

A one-time fee charged by the lender to process your application.

✅

Eligibility

Based on income, existing EMIs (FOIR), credit score, age and employment type.

Loan Products

Types of Auto Loans

Choose the financing that fits the vehicle you have in mind.

🚗
New Car Loan

Financing for purchasing brand-new vehicles with lower interest rates.

🚙
Used Car Loan

Loan for pre-owned vehicles, usually at slightly higher interest rates.

🔋
Electric Vehicle Loan

Special loans with attractive rates to promote eco-friendly vehicles.

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Loan Against Car

Borrow money by pledging your existing car as collateral.

Why Auto Loan

Benefits of taking an Auto Loan

  • Affordable EMIs with flexible repayment tenure.
  • Lower interest rates due to secured nature.
  • Quick approval and fast disbursal.
  • Finance up to 90%* of the vehicle's on-road price.
  • Special offers for salaried, self-employed and EV buyers.
Compare Lenders

Auto Loan interest rates in India

Rates vary based on lender, credit score, vehicle type and tenure. Final terms are decided by each bank based on your profile.

Bank / LenderInterest Rate (p.a.)Loan TenureProcessing Fee
SBI
8.85%* – 9.80%*Up to 7 yearsUp to 1%*
HDFC Bank
9.50%* – 10.75%*Up to 7 yearsUp to 1%*
ICICI Bank
9.25%* – 10.50%*Up to 7 yearsUp to 1%*
Axis Bank
9.30%* – 11.00%*Up to 7 years₹3,500 – ₹5,000
Kotak Mahindra Bank
9.50%* – 11.50%*Up to 7 yearsUp to 2%*
Punjab National Bank
8.95%* – 9.90%*Up to 7 yearsUp to 1%*
Bank of Baroda
8.90%* – 9.85%*Up to 7 yearsNil – 1%*
*Rates, tenures and fees are indicative and vary by lender and applicant profile. Logos are trademarks of their respective owners, shown for identification only.
Am I Eligible

Eligibility criteria for Auto Loan

  • Indian resident aged between 21 and 65 years.
  • Salaried or self-employed individuals are eligible.
  • Minimum monthly income as per lender norms.
  • Stable employment or business continuity.
  • Good credit score (preferably 700+).
Keep Ready

Documents required for Auto Loan

🪪 Identity & Address Proof
  • Loan application form with photographs
  • Identity proof — Aadhaar, PAN, Passport or Driving Licence
  • Address proof — Utility bill, Aadhaar or Rent Agreement
🧾 Income & Vehicle Documents
  • Income proof — Salary slips, Form 16 or ITR
  • Bank statements for the last 6 months
  • Quotation or invoice of the vehicle
What Matters

Factors affecting Auto Loan interest rate

  • 📊
    Credit score: Higher scores attract lower interest rates.
  • ⏳
    Loan tenure: Longer tenure may increase interest cost.
  • 🚗
    Vehicle type: New cars get better rates than used cars.
  • 💰
    Down payment: Higher down payment reduces interest burden.
  • 🏦
    Lender policies: Rates vary across banks and NBFCs.
Step by Step

How to apply for an Auto Loan?

  1. Compare car loan interest rates across banks.
  2. Check eligibility and EMI affordability.
  3. Submit the online or offline application.
  4. Upload documents and complete verification.
  5. Get loan approval and disbursal.
Online platforms make auto loan applications quick, transparent and hassle-free.
FAQ

Auto Loan questions

Can I finance a used vehicle?
Yes — many lenders finance pre-owned vehicles, but rates are higher (around 11–16%) and LTV lower.
How much of the cost is financed?
Lenders fund a portion of the on-road price (often 85–100% for new cars); the rest is your down payment.
Does a bigger down payment help?
Yes — a 20%+ down payment lowers the LTV and can fetch a better rate.
Does Shah Communication approve it?
No — the lender decides approval, rate and terms.
Ready When You Are

Let's find the right option for you

Check your indicative eligibility, compare suitable options and get expert guidance at every step.

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