Car Loan

A car loan is money borrowed from a bank or financial institution to buy a new or used car. You repay the amount in monthly instalments (EMIs) over a fixed period.

Salaried employees, self-employed individuals, and business owners can apply. Eligibility depends on income, age, credit score, and repayment capacity.

Most lenders finance up to 80%–100% of the car’s on-road price, depending on your credit profile and the lender’s policy.

Yes, most lenders allow prepayment or foreclosure. However, some may charge a prepayment penalty, so it’s important to check the terms before closing the loan early.

The common documents required for car loan application include identity proof (Aadhaar, PAN), address proof, income proof (salary slips or ITR) or bank statements (depending on the employment).