Are you looking forward to purchasing that dream car? Well, no need to fret. You need to be salaried or self employed and have around 10/15% of the car cost needed for a down payment. If you are capable of repaying the balance amount through monthly EMI's a number of banks like ICICI, Kotak, Hdfc among others can step ahead to provide you a loan for the same. If you are neither salaried nor self employed, no sweat again. You need to get a guarantor/ co applicant who meets the income criterias and you could still drive home your dream car. Depending on your budget you have a choice of purchasing a new car or a second sale car.
Indicative rate of interest for a 5 year loan would be:


All that you wanted to know about car loans but could not find out :
The first step would obviously be deciding which car & model to buy. This would depend on your personal choice, need and most importantly your budget. You could also decide on a quality checked 2nd sale car.
Once you have decided rest back and let the experienced team at take over the entire burden of applying, booking and getting the loan sanctioned registration, insurance etc.


Car loan application process:

  • Enquiry with a lender: Firstly you need to get in touch lenders and get them to make loan offers to you. Check if there are any special offers too. Then all you need to do is select the best bank (lender) by comparing the information you have collected to choose the best deal for you.
  • Documents Collection: After your lender selection, their direct selling agent will visit you
  •  to collect documents supporting proof of income, residence proof, and identity. You may be have to give copies of IT returns, salary slips, bank statements, passport, driving license, and other relevant documents as well. (Please note that these requirements vary across lenders.)
  • Field Investigation Agency Representative Visit: After submitting the documents, a field investigator visits your home to double check the facts provided in the documents, such as your place of residence, tenure at work place, and so on. It is important that you are present during this visit to clarify any question that the investigator might have. Otherwise, the investigator might not get all the facts clearly and could report that the facts you provided do not actually add up - thus forcing the lender to reject your loan application.
  • Loan approved: After the lender is satisfied with the authenticity of your documents, the loan is approved. The lender then disburses the amount through cheques or demand drafts (DD).

Above mentioned steps are a gist of the entire process but it should be borne in mind that these can vary from individual to individual and lender to lender.




That’s really nice. I got my dream car because of Loan Factory.

- Amit Sharma