A Vehicle Loan is a type of secured loan that enables individuals to purchase a new or used vehicle—such as a car, bike, or commercial vehicle—by borrowing funds from a bank or financial institution. The loan is repaid in monthly installments (EMIs) over a fixed tenure, typically ranging from 1 to 7 years. The vehicle itself acts as collateral for the loan, and ownership is usually transferred to the borrower once the loan is fully repaid. Vehicle loans come with flexible repayment options, competitive interest rates, and minimal documentation, making it easier and faster to get on the road.

Features and Benefits of our Car Loan

• Access to Immediate Funds
• Flexible Loan Tenures
• Fixed Interest Rates
• Customized Loan Amounts
• Convenient Monthly Repayments
• Potential Tax Benefits
• Option for New and Used Cars
• Ownership from Day One
• No Need for Full Upfront Payment
• Improve Credit Score through Timely Payments

Income Tax Benefits on Car Loans Taken to Purchase Electric Vehicles:

One of the primary income tax benefits for EV buyers is the deduction on the interest paid on the car loan. This deduction can help reduce your taxable income, resulting in lower income tax liability. Additionally, businesses or individuals using EVs for business purposes might enjoy accelerated depreciation benefits. This means you can write off a larger portion of the EV's value over a shorter period, which can further decrease your taxable income.

Another notable advantage is the reduced Goods and Services Tax (GST) rates on EVs. Governments often subject electric vehicles to lower GST rates, making the overall purchase cost more affordable. This indirectly contributes to your tax savings.

But like every good thing, this too comes with conditions, such as the beneficiary has to be an individual taxpayer, this option is available only for a limited time i.e. 1st April 2019 to 31st March 2023 (Ev should be purchased within this period). Additionally, tax regulations can change over time, so it's essential to stay updated on the latest rules.

Car Loan Eligibility Criteria for Top Banks

Car loan eligibility criteria vary from one bank to another, but generally include factors such as your age (usually 21 to 65 years), minimum income (often around INR 20,000 per month), and stable employment. A good credit score, usually 650 or above, is important. Some banks might require you to be a salaried employee or self-employed, while others could need you to have a certain work experience or business vintage. Banks also consider your existing debts and liabilities to ensure you can manage the loan. Checking with each bank directly or using their online eligibility calculators can provide precise criteria tailored to their policies.

Car Loan Eligibility for Salaried Individuals/Self-Employed Individuals

For salaried individuals

1. Individuals who are at least 21 years old at the time of loan application and no older than 60 at the end of the loan tenure
2. Individuals who have worked for at least two years, with at least one year with the current employer
3. Individuals with a minimum earning of Rs. 3,00,000 per year, including the income of the spouse/co-applicant.

For Self Employed Individuals

1. Individuals who are at least 21 years old at the time of application and no older than 65 at the end of the loan tenure.
2. Those who have been in business for at least two years.
3. Should earn at least Rs. 3,000,000 per year

Factors affecting Car Loan Eligibility

• Credit Score
• Income
• Employment History
• Age
• Debt-to-Income Ratio
• Loan Amount
• Loan Tenure
• Work Experience (For Self-Employed)
• Credit History
• Location

Documentation for Vehical Loan

You will be asked to submit papers suggested by your lender to show your eligibility and competence for a Car Loan. To begin the loan procedure, keep the following documents on hand to obtain a loan as soon as possible.

List of Documents Required

• KYC documents (Valid Photo ID Proofs)

• PAN Card

• Last 2 years' ITR as proof of income

• Salary Slip (latest 3 months)

• Salary account statement(latest 6 months)

• Signature Verification Proof

Fees and Charges for Personal Loan

The fees and charges of personal loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to personal loans:

Personal Loan FAQs