Fix your car budget
Include registration, insurance, accessories, fuel, and maintenance in your budget.
Vehicle finance
Car Loan
Planning to buy a new or used car? Check loan eligibility, down payment, and documents first.
Before you start
Car Loan Eligibility and Document Guide
Your income, age, credit history, chosen vehicle, and down payment affect the available car loan.
Important before you apply
Key points to consider for Car Loan
Check these points carefully before choosing an option or starting your application.
Check down payment
A higher down payment can reduce the loan amount and total interest.
Read loan conditions
Check foreclosure, late fee, insurance, and hypothecation terms.
18 eligibility points
Eligibility Criteria
See the basic conditions normally checked before you can apply.
Eligibility Criteria - Indian Market Baseline
Salaried
- Minimum age commonly 21 years.
- Maximum age at loan maturity commonly around 60 years.
- Minimum annual income examples from large lenders are roughly Rs. 2.4 lakh to Rs. 3 lakh.
- Minimum continuous work experience commonly at least 1 year.
Self-employed
- Minimum age can start at 18 or 21 depending on lender.
- Maximum age at maturity commonly up to 65 years.
- Minimum annual income examples are roughly Rs. 1.8 lakh to Rs. 3 lakh depending on vehicle/lender.
- Business continuity commonly 1-3 years.
Credit
- Healthy bureau record required.
- 700+ is a useful pre-screen threshold; 750+ improves lender options/rates.
- Existing obligations and EMI affordability are assessed.
Vehicle
- Vehicle/model must be lender-approved.
- Dealer/proforma invoice / quotation required.
- Margin/down-payment and LTV vary by lender and borrower profile.
32 document points
Document Requirements
Check which clear and valid documents you should keep ready.
Document Requirements
Common
- Application form
- PAN
- KYC identity/address proof
- Age proof
- Photograph
- Signature proof, if required
- Proforma invoice / vehicle quotation
Salaried
- Latest 2-3 salary slips
- Latest Form 16 / ITR, where required
- Last 3-6 months bank statements
- Employment-continuity proof, if requested
Self-employed
- ITR, commonly last 2 years
- Audited Balance Sheet and P&L, commonly last 2 years
- Last 3-6 months bank statements; some lenders may ask longer
- Business registration / GST / MSME-Udyam / Shop Act etc.
- Partnership/company constitutional documents where applicable
Disbursement / Post-Sanction Vehicle Papers
Depending on lender/dealer process
- Final invoice
- Insurance
- Registration / RC details
- Hypothecation endorsement / RTO forms
- Down-payment receipt
If Used Car Is Included
Also collect
- RC copy
- Current insurance
- Vehicle valuation / inspection report
- Seller KYC/details where required
- Existing hypothecation/NOC if any
- Vehicle-age/model criteria as per lender
Simple steps
Finance your car in three steps
Follow these three simple steps.
Check your eligibility
Review the income, age, credit, and document points for a car loan.
Compare current options
Check the available lender options, total cost, EMI, and important terms.
Apply and track
Continue in your secure account and follow every application update.
Reference Basis
These public sources were checked for this guide. Rules can change, so open the source for the latest official information.