AutoDrive | New Car Loan Comparison & EMI Calculator
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New Car Loan — Low Interest, Quick Approval, Flexible EMI
Get behind the wheel of your brand-new car with affordable financing. Compare interest rates from top banks, check your eligibility, and calculate EMIs instantly. Drive home your dream car with minimal down payment and hassle-free documentation.
Bank / NBFC
Interest Rate (p.a.)
Max Tenure
Loan Amount (up to)
Processing Fee
CIBIL Required
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SBI New Car Loan
8.70%*
7 Years (84 months)
90% of on-road price
Nil to 0.50%
700+
HDFC Car Loan
8.95%
7 Years (84 months)
100% ex-showroom
0.50% - 1%
720+
ICICI Car Loan
8.85%
7 Years (84 months)
100% ex-showroom
0.35% - 0.75%
710+
Axis Bank Car Loan
9.10%
7 Years (84 months)
90% of on-road price
0.50% - 1%
700+
*Interest rates are floating and vary based on loan amount, CIBIL score, and lender policies. Terms & conditions apply.
What is a New Car Loan?
A New Car Loan is a secured auto loan that helps you purchase a brand-new car. The car itself serves as collateral, allowing lenders to offer competitive interest rates and longer repayment tenures. You can finance up to 90-100% of the car's on-road price or ex-showroom price, with repayment through EMIs over 1 to 7 years.
How Does a Car Loan Work?
After selecting your car, you apply for a loan with a bank/NBFC. The lender checks your credit score, income, and employment stability. Upon approval, the loan amount is directly disbursed to the car dealer, and you repay in EMIs.
Choose car & negotiate price with dealer
Apply for loan with required documents
Credit assessment & loan sanction
Disbursement to dealer & delivery of car
Repayment via EMIs over chosen tenure
Key Features of Car Loan
High Financing: Up to 100% of ex-showroom price
Low Interest Rates: Starting from 8.70% p.a.
Long Tenure: Up to 7 years (84 months)
Quick Approval: Instant in-principle sanction
Minimal Documentation: Digital KYC & income proof
Part Payment & Foreclosure: Options available
Eligibility Criteria
Age: 21 – 65 years (at loan maturity)
Minimum income: ₹20,000+ per month (salaried)
CIBIL Score: 700+ preferred (650+ may be considered)
Employment: Salaried (1+ year) or Self-employed (3+ years)
Stable residence & work history
Required Documents
📄 For Salaried Applicants
KYC (Aadhar, PAN, Voter ID/Passport)
Last 3 months salary slips
Form 16 or ITR for last 2 years
Bank statements (last 6 months)
Employment proof & offer letter
🏢 For Self-Employed
ITR with computation for last 3 years
Audited Balance Sheet & P&L
Business proof (GST, MSME certificate)
Bank statements (last 12 months)
New Car Loan — FAQs
1. What is the maximum loan amount I can get for a new car?
Most lenders finance up to 90-100% of the car's ex-showroom price or on-road price. The exact amount depends on your income and credit profile.
2. Can I get a car loan with a CIBIL score of 650?
Yes, some NBFCs and banks offer car loans with a score of 650+, but interest rates may be higher. A score above 700 gets you the best rates.
3. What is the difference between ex-showroom and on-road price?
Ex-showroom price is the basic cost of the car excluding taxes & registration. On-road price includes RTO registration, insurance, and other charges. Some lenders finance on-road price fully.
4. Can I prepay my car loan?
Yes, most lenders allow part-prepayment or full foreclosure after a certain period (usually 6-12 months). Charges may apply on fixed-rate loans, while floating rates may have nil charges.
5. Is insurance mandatory for car loan?
Yes, comprehensive car insurance is mandatory for the entire loan tenure. Lenders require the policy to be assigned in their name as collateral protection.
