Why Financing Your Dream Car Matters
Owning your dream car in India in 2025 is achievable with the right car loan. Loanpao helps you navigate car loan options, eligibility, and financial planning to make your dream a reality without straining your finances.
Steps to Finance Your Dream Car
Follow these steps to secure a car loan:
- Determine Your Budget: Calculate affordable EMIs (ideally 15–20% of monthly income).
- Check Your Credit Score: Aim for a score above 700 for better loan terms.
- Choose the Car: Select a car within your budget, considering new or used options.
- Compare Loan Offers: Evaluate interest rates (8–12% p.a.), tenures, and fees.
- Prepare Documents: Gather ID, income proof, and car details for a smooth application.
Car Loan Eligibility Criteria
Typical requirements for car loans in 2025:
| Criteria | Details |
|---|---|
| Age | 21–60 years |
| Income | Minimum ₹20,000/month (salaried), ₹2.5 lakh/year (self-employed) |
| Credit Score | 700+ preferred |
| Loan Amount | Up to 90–100% of car value |
| Tenure | 1–7 years |
Documents Required for a Car Loan
Common documents include:
- Identity Proof: Aadhaar, PAN, or driving license.
- Address Proof: Utility bill, Aadhaar, or passport.
- Income Proof: Salary slips, bank statements, or ITR (last 6 months).
- Car Documents: Proforma invoice, car quotation, or dealer agreement.
- Others: Application form, passport-size photographs.
New vs Used Car Loans
Compare your options:
| Aspect | New Car Loan | Used Car Loan |
|---|---|---|
| Interest Rates | 8–10% p.a. | 10–14% p.a. |
| Loan Amount | Up to 100% of car value | Up to 80–90% of car value |
| Tenure | Up to 7 years | Up to 5 years |
| Eligibility | Easier approval | Stricter due to car valuation |
How Loanpao Helps You Finance Your Car
Loanpao offers:
- Comparison of car loan offers from top lenders in India.
- EMI calculators to plan affordable repayments.
- Eligibility assessment tools for quick checks.
- Document verification and application support.
- Expert advice on new vs used car loans.
Frequently Asked Questions
A score above 700 improves your chances of better rates and approval.
Yes, used car loans are available, but rates may be higher (10–14% p.a.).
Typically 0–20% of the car’s value, depending on the loan type.
Usually 1–3 days with complete documentation.
Yes, but check for prepayment penalties (1–2% of outstanding amount).
Loanpao provides loan comparisons, EMI calculators, and application support.
How to Get Started with Loanpao
Drive your dream car with Loanpao:
- Visit Loanpao’s application page to explore car loan options.
- Use the EMI calculator to assess repayment affordability.
- Compare new and used car loan offers.
- Apply for a car loan with fast processing.