Download App
Scan or click to Download App on your mobile
We process all our loans through SATSAI Finlease Private Limited a RBI registered NBFC. (RBI License: - B-14.01646)
To meet the needs of various consumer sectors, Flocred offers car loan options from more than 30 banks and NBFCs. In order to apply for the best loan choice based on their credit histories, clients can examine the important loan characteristics provided by leading lenders. Furthermore, we have formed unique alliances with a number of banks and NBFCs to provide pre-approved/pre-qualified car loans with end-to-end digital processing and immediate disbursal.
Apply Now| Car Loan Details | |
| Interest Rate (Monthly reducing balance) | 8.40% onwards |
| Processing Fees | Depends on the bank |
| Loan Tenure | 1 year to 8 years |
| Pre-closure Charges | Varies with bank |
| Guarantor Requirement | Varies with bank |
Note: Different banks will have different interest rates. Because of this, it is essential to compare interest rates before deciding which loan to apply for.
When you apply for a car loan, it's critical that you keep a strong credit rating. The loan will be granted more quickly, and if your credit score is good, lenders will also offer low interest rates. When applying for a car loan, there is no need for security or collateral. The security is provided by the car.
| Key USP | Bank | Features |
| loans for Expensive Cars | HDFC |
|
| Designed for business people and farmers without an income proof | State Bank of India |
|
| Small Loans | Axis Bank |
|
| Free Personal Accident Insurance | Federal Bank |
|
| Low-Interest Rates on New and Used Cards and Automobiles | Canara Bank |
|
Varying banks may have different requirements for qualifying for auto loans. The following are the standard criteria:
You'll need to present specific documentation to demonstrate your eligibility. The following will be the typical documentation, even though this is also unique to various lenders:
| Particulars | Charges |
| Identity proof (any of the following) |
|
| Address proof (any of the following) |
|
| Proof of income |
|
Note: Make cautious to confirm the specific documentation the lender requires. The paperwork needed may vary based on your circumstances as well. The same paperwork as before are needed to apply for a used car loan.
| Steps | Requirement | Inference |
| Apply for a car loan | Compare all offers available | Find the loan that provides you with the largest loan amount and the lowest interest rate. |
| Submit Income Proof | Bank Statement (last 6 months) Pay-Slips (last 3 months) IT- Returns (last 2 years) | The lender wants to confirm your capacity to pay back the loan. |
| Submit Proof of Address and Identity | PAN Card, Voter's ID, Aadhaar Card, Passport, etc. | The lender needs proof of your citizenship, identity, and address at a fixed location. |
| Credit History | PAN Card | The lender wants to review your credit history to see if you have a history of making on-time payments. |
| Information About Vehicle | Sales receipts from the dealership where the car was bought | The lender must attest that the transaction was completed as intended. |
| Proof of Insurance and Driving License | Copies of the vehicle's Motor Insurance and your Driving License | Lender must prove that all regulations and procedures pertaining to the transaction are followed. |
Pros:
Cons:
However, it is essential that you evaluate various loan packages before selecting the one that best meets your needs.
Your Equated Monthly Instalments (EMIs) will vary depending on a few important variables.
The greater the loan amount, the more the EMI. Similar to this, the EMI increases with shorter loan terms. Visit our vehicle loan EMI calculator to get the ideal balance between an inexpensive EMI and term.
The following features and advantages are generally available with auto loans in India. Please take note that the following is a general overview of the benefits provided by auto loans. Lenders of auto loans may each offer highly specialised and tailored services to their clientele.
It is preferable to get a pre-approved loan when you need money to pay for the new or used car you have had your eye on for a while. You can take a few steps to apply for a loan like this to get the money you need right now.
When you take out a car loan, you can pay it off over time in equated monthly instalments (EMIs). However, you will be prepaying or foreclosure your loan if you choose to pay off the remaining balance before the term is out. Although certain lenders may let you foreclose on or prepay your auto loan without imposing any penalties, the majority of lenders offer the foreclosure/prepayment opportunity for a penalty fee.
If your income has increased and you want to discharge your obligation, you can foreclose on your auto loan. Additionally, it relieves you of the pressure of monthly EMI payments. When an automobile loan is paid off in full, the hypothecation on the vehicle is released.
As was already mentioned, some lenders may impose fees for loan foreclosure. Therefore, it is a good idea to carefully read the stipulations linked with a loan before deciding to foreclose on it.
You can obtain a top-up loan on your existing auto loan if you need urgent cash or additional funds after taking out a car loan for things like a wedding, house renovations, unexpected medical expenses, etc. As a top-up loan, you are eligible for up to 150% of the car's worth. The majority of lenders who offer top-ups on car loans will demand that you keep up a spotless payment history for at least nine months. It takes little time and paperwork to get a top-up loan for your current auto loan.
HDFC Bank, Axis Bank, and Kotak Mahindra Bank are a some of the institutions that provide top-up on their auto loans.
Car refinancing is the process of taking out a new loan to pay off the remaining debt on an existing auto loan. If you want to replace your current loan with a better one that has superior characteristics like low interest rates, longer payback terms, etc., or if you just want to modify the conditions of your present loan, you can refinance your auto loan. Saving money is the primary motivation for refinancing auto loans. You can obtain a new loan with reduced interest rates when you refinance a car loan, which will enable you to save money. Through car refinancing, you can also reduce the equivalent monthly instalments (EMIs) by selecting a longer repayment period with a new lender.
When interest rates have decreased since you took out the initial vehicle loan, your financial situation has improved, you are unable to pay high EMIs, and you believe you did not receive a decent deal on your auto loan the first time around, refinancing is an excellent idea. Refinancing a car loan, however, is not a good idea if you have already paid off a sizable portion of your original loan, your car's value has decreased, the prepayment penalties are high, and you intend to apply for additional loans in the future because refinancing could harm your credit score.
Purchasing used automobiles is quite common in India. If you want to purchase a used car, there are several financing alternatives available as well. Most banks and Non-Banking Financial Companies (NBFCs) provide loans for used cars. Before financing the purchase of a used car, though, a number of factors must be taken into account. Before choosing one, it is crucial to evaluate the interest rates provided by different banks and NBFCs. A good choice must be made regarding the loan tenure. Longer loan terms will result in lower EMI payments, but interest rates will rise. Used auto loans include interest rates that range from 8.8% to 17%. It is crucial that you look at the processing charges assessed as well. Few banks and NBFCs impose significant fees.
You can now get a tax credit of Rs. 1.5 lakh on the interest paid if you took out a car loan to buy an electric vehicle (EV). This was stated by Finance Minister Nirmala Sitharaman in the most recent Union Budget (2019–20), and it is a part of the government's initiatives to encourage the adoption of environmentally friendly mobility options. A bonus of roughly Rs. 2.5 lakh will be available to you for the duration of the loan if you bought an electric vehicle. Additionally, the government reduced the tax rate on electric vehicles from 12% to 5%.
People can purchase a new car using two different methods: financing and leasing. The car owner or lessee would be required to make monthly payments in both scenarios. The bank or leasing company would also own a portion of the car.
When comparing automobile leasing with loan-financed car purchases, there are a number of distinctions. Here are a few of the distinctions:
The terms and conditions are subject to change at any time, without prior notice, by Flocred.
Depending on the lender, you may be able to borrow up to a certain amount of money to purchase a car. The majority of banks offer financing for up to 90% of the car's on-road cost, although other institutions, such HDFC Bank, etc., offer financing for up to 100% of the car's on-road cost.
Yes, you can prepay the entire car loan to avoid future interest costs that are essential. However, once your loan tenure has accumulated six months, the majority of banks would let you exercise the pre-payment option. Additionally, you will be required to pay a modest fee as a pre-payment penalty, the amount of which will depend on the remaining loan balance.
Almost all small to medium sized cars, commercial vehicle loans, sports utility vehicles (SUV), and multi utility vehicles (MUV) are covered under car loans offered in India, unless otherwise stated. As previously said, there are several exceptions to this rule, so consult the loan brochure.
The majority of car loan options in India are secured loans, with the purchased vehicle typically serving as the security. The majority of Indian lenders do not demand guarantors, however if your annual income falls short of the required amount, you can be asked to name a co-applicant or guarantor.
Typically, repayment terms range from 12 to 84 months (1-7 years).
A good credit score above 750 is excellent, just like it is for the majority of loans. If your credit score is higher than 600, though, you can still apply for a loan. Just keep in mind that a poor score could result in your application being declined.
Yes. Some banks will give applicants with excellent credit scores cheaper interest rates. The interest rates for borrowers with bad credit will also be higher.
Lenders will aim for a credit score of at least 750 when you apply for a car loan. Lenders may be hesitant to lend to you if your score is below this one because it shows you have a weak repayment capacity. Despite your poor credit, some banks might still provide you a car loan, but they might charge you a higher interest rate.
Make careful to look into all your possibilities before applying for any type of auto loan. You will learn about the advantages provided by various lenders on their auto loans once you do some research. Compare the advantages provided and choose a lender that meets your needs. Choose the location that gives the best interest rates, whether it is a bank or a vehicle dealership.
Yes. Top lenders like SBI, HDFC Bank, and others provide loans for used automobile purchases. If the vehicle isn't more than five years old, these lenders will lend up to 85% of its worth. Loans for used cars have a seven-year maximum repayment period.
Your credit score is one of the most significant variables that lenders take into account before extending you a vehicle loan. As was already said, having a credit score above 750 entitles you to reduced interest rates and other advantages. Your employment status, the stability of your home and employment, your income, your debt-to-income ratio, etc. are additional considerations for lenders when you apply for a car loan.
The interest rate, loan size, and payback period you select will all affect the EMI (equivalent monthly instalments) you must make on your auto loan. Utilizing the EMI Calculator function on the BankBazaar website, you may determine the EMI. For illustration, imagine you take out a car loan for Rs. 1 lakh with a 12% interest rate and a 5 year term. We estimated the EMI using the programme and discovered that it was Rs. 2,224.
Making a larger down payment can allow you to purchase a car with a smaller loan. There is a chance that banks or lenders will issue you a car loan at a reduced interest rate if you request a smaller loan amount. Simply put, a smaller loan amount means a speedier repayment schedule. A greater down payment will ensure that your debt liability is lower even if there is no hard and fast rule for how much you should put down.
You can bargain with the banks to provide you a car loan at a reduced interest rate if your credit score is greater than 750. Since your excellent credit score is a sign of your strong repayment capacity, many lenders will allow you negotiate the interest rates. If your credit is good, some lenders might even forgo the processing charge for you.