Loan against Car

If you need money, then you can take a loan on your car as well

If suddenly there is a need for money and you do not know any other way, then you can take a loan against your car. Both banks and non-banking financial companies (NBFCs) offer 'loans against cars'. Loan is available from 50% to 150% of the current cost of the car. For 1 to 7 years, this loan is available at 13 - 15% interest per annum. The processing fee is 1 - 3%.

Eligibility for Loan against Car:

  • The age of the applicant should be minimum 21 years and maximum 65 years.
  • The applicant should have a fixed income source like job or business.
  • Banks and NBFCs usually give loans on cars less than 10 years old.

Required Documents

  • Voter ID Card / Photo Ration Card / Passport
  • PAN Card, Aadhaar Card
  • Income tax returns of three years
  • Salary slip of three months
  • Salary Account Statement
  • RC of the car
  • Car insurance papers

Banks see the track record

Most of the banks look at the loan repayment track record of the applicant for at least 9 months before sanctioning the loan against car. Your loan will be available only if you pay all the EMIs of the existing loan (if any) on time.