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Drive Home Your Dream Car with a Car Loan

Flexible financing solutions to help you own the vehicle you’ve always wanted.
OVERVIEW FEATURES TYPES ELIGIBILITY DOCUMENTS EMI CALCULATOR FEES AND CHARGES REVIEWS FAQ'S

Car Loan Features

Loan of up to 100% Finance

4 Unique Variants

Tenure of up to 72 months

Minimal Documentation

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

Types of Car Loan

1

New Car Loan

A secured loan to finance the purchase of a brand-new vehicle, with the car itself used as collateral. It offers structured repayments and often features lower interest rates compared to unsecured loans.

2

Pre-Owned Car Loan

A loan tailored for buying a used or second-hand vehicle, secured by the car being purchased. It provides reasonable terms and competitive interest rates while helping buyers access older models within their budget.

3

Loan Against Car

A secured credit facility allowing you to borrow against your current vehicle’s value without selling it. It offers quick access to funds, often with simplified documentation and flexible repayment period.

4

Refinance of Car

Refinancing your car loan involves replacing an existing auto loan with a new one, usually to benefit from better interest rates or longer repayment terms. This can help lower monthly payments or release equity, depending on your vehicle's remaining value.

Car Loan Eligibility and Documents

Read on to know the criteria required to apply for our Car Loan.
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Car Loan Eligibility

Car loan eligibility is about whether you can get a loan to buy a car. It depends on things like how much you earn, your credit score, and if you have other debts. Lenders use these details to decide if you can repay the loan. If you meet their criteria, you’re eligible for the loan; if not, you might need to wait or improve your financial situation before getting a car loan.

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 700 or above, is important. Some banks might require you to be a salaried employee or self-employed, while others might need you to have a certain work experience or business background. 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

Documents Required to Apply for Car Loan

  • 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

EMI Calculator for Car Loan

An EMI calculator is a useful tool that can help you estimate the monthly installments you will have to pay towards your used Car Loan within a specific period. By using the Taurus EMI calculator, you can calculate your EMI beforehand, which can help you plan your finances better. Additionally, you can check your eligibility and compare different Loan options using Taurus used Car Loan calculator.

Using a Car Loan EMI (Equated Monthly Installment) calculator can help you estimate your monthly loan repayment amount. Follow these steps to use a Car Loan EMI calculator effectively:

  • Enter Loan amount, interest rate, tenure.
  • Click Calculate.
  • View EMI, total interest, repayment.
  • Adjust tenure if needed.
  • Consider extra costs.
  • Check budget compatibility.
  • Confirm with the lender before finalizing.

How is Car Loan EMI Calculated?

Car Loan EMI (Equated Monthly Installment) is calculated using the following formula:

EMI = [P * r * (1 + r)^n] / [(1 + r)^n – 1]

Where:

  • EMI = Equated Monthly Installment
  • P = Loan principal amount
  • r = Monthly interest rate (Annual interest rate divided by 12, expressed as a decimal)
  • n = Loan tenure in months

Fees and Charges for Car Loan

The fees and charges of car 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 car loans:
Particulars Charges
Loan Processing Fees 1.5% to 4% of loan amount
Loan Cancellation Usually around Rs 5,000
Stamp Duty Charges As per actuals
Legal Fees As per actual
Penal Charges Usually @ 2% per month; 24% p.a.
EMI / Cheque Bounce Charges Around Rs 400 per bounce
Other fees and charges that lenders may levy on your personal loan include documentation charges, verification charges, duplicate statement charges, NOC certificate charges, and swap.

Car Loan Reviews

When I needed funds quickly against my existing car, Taurus guided me to the right bank. The process was fast, documentation minimal, and I didn’t have to give up my vehicle.

Rohit Kulkarni

I wanted a higher loan amount to buy a premium car. Taurus compared multiple banks and helped me choose the best option with a flexible tenure. Managing the EMIs has been very easy.

Sandeep Patil

The standout feature for me was how little paperwork was needed. Taurus connected me with a reliable bank and made the entire car loan process transparent and hassle-free.

Mohit Sharma

I was looking for a car loan with convenient repayment options. Taurus helped me evaluate different banks and guided me throughout, making the experience smooth and stress-free.

Sneha Deshmukh

Car Loan​​​​​​​ FAQs

A car loan is a type of loan specifically used to purchase a vehicle, such as a car, truck, or motorcycle. The borrower receives a lump sum from the lender, which is then repaid over time with interest. The vehicle being purchased serves as collateral for the loan, and if the borrower fails to repay the loan, the lender has the right to repossess the vehicle. Car loans typically have fixed monthly payments and a fixed term, ranging from a few years to several years, depending on the loan amount and terms.

A down payment is important in a car loan because it reduces the loan amount, resulting in lower monthly payments and less interest paid over the life of the loan. A higher down payment can also lead to lower interest rates, improve loan approval chances, and reduce the loan-to-value ratio, which is beneficial for securing better loan terms. Additionally, a down payment helps build equity in the vehicle faster, which can be advantageous if you plan to trade in or sell the vehicle before the loan is fully paid off.

A fixed interest rate remains constant for the entire loan term, providing predictable monthly payments. In contrast, a variable interest rate can change based on market conditions, leading to potential fluctuations in monthly payments. Fixed rates offer stability but may be higher initially, while variable rates can be lower at the start but carry the risk of increasing over time.

Yes, you can typically prepay or pay off your car loan early. Prepayment allows you to pay a lump sum towards the principal loan amount, reducing the outstanding balance. This can help you save on interest and pay off the loan sooner. However, some lenders may charge a prepayment penalty or fee for paying off the loan early, so it's advisable to check with your lender regarding their prepayment policies before making any early payments.

The main differences between a new car loan and a used car loan are the loan terms, interest rates, and loan amounts. New car loans typically have longer terms, lower interest rates, and higher loan amounts compared to used car loans. Additionally, new cars depreciate more rapidly than used cars, which can affect the loan-to-value ratio. It's important to consider your budget, the total cost of ownership, and how long you plan to keep the car when deciding between a new or used car loan.
If you can't make your car loan payments, you may face late fees, a negative impact on your credit score, and the risk of repossession by the lender. It's important to communicate with your lender if you're facing financial difficulties to explore possible options, such as refinancing or modifying your loan terms, to avoid defaulting on your loan.
To get your car loan approved faster, check your credit score, gather necessary documents, shop around for the best loan terms, make a down payment, consider a co-signer if needed, apply online, and respond promptly to any lender requests. These steps can help streamline the approval process and get you behind the wheel of your new car sooner.
The minimum credit score required to get a car loan can vary depending on the lender and the type of loan. However, a credit score of more than 650 to 700 is generally considered acceptable for a car loan. Keep in mind that a higher credit score can increase your chances of approval and help you qualify for better loan terms, such as a lower interest rate.
The maximum loan amount that can be availed for a new car depends on various factors, including your credit score, income, existing debts, and the lender's policies. However, lenders typically offer car loans that cover up to 80% to 100% of the car's on-road price. It's advisable to check with different lenders to compare loan offers and determine the maximum amount you can borrow for a new car based on your financial situation.
Car loan repayment tenures commonly range from 1 year to 7 years, depending on the lender and the borrower's preference. Shorter loan tenures result in higher monthly payments but lower overall interest costs, while longer tenures offer lower monthly payments but higher total interest payments. Borrowers can choose a repayment tenure based on their financial situation and the amount they can comfortably afford to repay each month.The minimum credit score required to get a car loan can vary depending on the lender and the type of loan. However, a credit score of more than 650 to 700 is generally considered acceptable for a car loan. Keep in mind that a higher credit score can increase your chances of approval and help you qualify for better loan terms, such as a lower interest rate.
To get a No Objection Certificate (NOC) from a bank for a car loan, repay the loan in full, contact the bank for an NOC, submit required documents, and once verified, the bank will issue the NOC. Submit the NOC to the regional transport office (RTO) to update vehicle records and complete the loan closure process.

EMI Calculator

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