What is a Vehicle Loan?
A Vehicle Loan is a secured loan provided by banks and NBFCs to help individuals and businesses purchase vehicles. Whether you’re buying a car for personal use or a commercial vehicle for business operations, vehicle loans come with affordable EMIs, competitive interest rates, and flexible tenure options.
Types of Vehicle Loans
1. Car Loan (For Personal Use)
A car loan helps individuals purchase a new or used car with structured repayment plans. This loan is secured against the vehicle itself, meaning the lender retains ownership until full repayment is made.
Features & Benefits: ✅ Loan Amount: Up to 100% of the car’s on-road price
✅ Interest Rate: Starting from 8.50% p.a.
✅ Tenure: 12 to 84 months
✅ Collateral: The car serves as collateral
✅ Flexible EMI Options
✅ Quick Processing & Disbursal
2. Commercial Vehicle Loan (For Business Use)
This loan helps businesses purchase trucks, buses, tempos, and other commercial vehicles for logistics, transport, and business operations.
Features & Benefits: ✅ Loan Amount: Up to 90% of vehicle cost
✅ Interest Rate: Starting from 10% p.a.
✅ Tenure: 12 to 60 months
✅ Collateral: The commercial vehicle itself serves as security
✅ Available for First-Time Buyers & Fleet Operators
✅ Special Schemes for Small Businesses & MSMEs
Eligibility Criteria
| Criteria | Car Loan | Commercial Vehicle Loan |
| Age | 21 – 65 years | 21 – 65 years |
| Income Requirement | ₹20,000/month+ | ₹25,000/month+ (or valid business proof) |
| CIBIL Score | 700+ preferred | 650+ preferred |
| Employment Type | Salaried/Self-Employed | Self-Employed, Fleet Owners, Transporters |
| Business Stability | Not required | Minimum 2 years of business experience (for commercial loans) |
Documents Required
📌 For Salaried Applicants (Car Loan)
- Identity Proof: Aadhaar Card, PAN Card
- Address Proof: Utility Bill, Passport
- Income Proof: Salary Slips (Last 3 Months), Bank Statements
- Car Quotation from Dealer
📌 For Self-Employed & Business Owners (Commercial Vehicle Loan)
- Identity & Address Proof
- Business Proof: GST Certificate, Business Registration
- Income Proof: ITR (Last 2 Years), Bank Statements
- Vehicle Proforma Invoice
Vehicle Loan Interest Rates (2024)
| Lender | Car Loan Interest Rate (p.a.) | Commercial Vehicle Loan Interest Rate (p.a.) |
| HDFC Bank | 8.50% – 14% | 10% – 16% |
| ICICI Bank | 8.75% – 15% | 10.5% – 17% |
| SBI | 8.90% – 12.5% | 9.5% – 15% |
| Axis Bank | 9% – 14.5% | 11% – 18% |
| Bajaj Finserv | 9.5% – 16% | 12% – 20% |
Note: Interest rates may vary based on your profile and lender policies.
How to Apply for a Vehicle Loan?
Applying for a Car Loan or Commercial Vehicle Loan is easy with CashBazaar:
1️ Check Your Eligibility – Use our loan calculator to know how much you qualify for.
2️ Choose Your Loan Plan – Compare multiple lenders for the best interest rates.
3️ Submit Documents Online – Upload your KYC and income documents.
4️ Loan Approval & Disbursal – Get quick approval and drive away in your new vehicle!
Frequently Asked Questions (FAQs)
1. Can I get a car loan without a CIBIL score?
Yes, but you may need a guarantor or provide additional income proof.
2. What is the maximum loan amount for a car loan?
You can get up to 100% of the on-road price of the car, depending on your profile.
3. Do commercial vehicle loans cover second-hand vehicles?
Yes, many lenders offer loans for used commercial vehicles but at slightly higher interest rates.
4. What happens if I default on my vehicle loan?
Failure to repay may result in vehicle repossession by the lender.
5. Can I get a commercial vehicle loan if I’m a first-time buyer?
Yes, but you may need a co-applicant or provide business stability proof.
Apply for a Vehicle Loan Today!
Want to buy a car or commercial vehicle? Get the best loan deals with CashBazaar. Compare multiple lenders and apply for a car loan or commercial vehicle loan with ease. Get quick approval and drive your dream vehicle today!
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