Overview of RBI Vehicle Loan Guidelines 2025

The Reserve Bank of India (RBI) has revised vehicle loan guidelines for 2025 to promote affordable financing and ensure financial stability. As of 01:21 AM IST, July 04, 2025, Loanpao aligns with these regulations to offer compliant and competitive vehicle loan options. This section introduces the key updates and their impact on borrowers.

Key RBI Vehicle Loan Guidelines

Significant updates for 2025 include:

  • Interest Rate Caps: Maximum 9.5% for new vehicles.
  • Loan-to-Value (LTV) Ratio: Up to 90% for cars and 80% for two-wheelers.
  • Tenure Limits: Maximum 7 years for car loans, 5 years for two-wheelers.
  • Credit Score Requirement: Minimum 620 for eligibility.
  • Repossession Rules: Stricter norms for default cases.

These guidelines aim to reduce loan defaults by 10% in 2025.

Loan Options with Loanpao

Loanpao offers tailored vehicle loans under RBI guidelines:

Vehicle Type Interest Rate Loan Amount Tenure
Car Loan 7.5% - 9% ₹2 lakh - ₹50 lakh 1-7 years
Two-Wheeler Loan 8% - 10% ₹50,000 - ₹5 lakh 1-5 years
Commercial Vehicle Loan 8.5% - 9.5% ₹5 lakh - ₹1 crore 3-7 years

Note: Rates and terms depend on credit profile and vehicle model. Contact Loanpao for details.

Eligibility Criteria

To qualify for vehicle loans with Loanpao under RBI guidelines:

  • Age: 21-65 years.
  • Income: Minimum monthly income of ₹25,000.
  • Documents: Aadhaar, PAN, and income proof.
  • Credit Score: Minimum 620 required.
  • Employment: Salaried or self-employed with stable income.

Pre-approval available within 48 hours with complete documentation.

Benefits of RBI-Compliant Vehicle Loans

Advantages for borrowers in 2025:

  • Affordable Rates: Competitive interest rates with subsidies.
  • High LTV: Up to 90% financing for new cars.
  • Flexible Tenure: Options up to 7 years.
  • Insurance Integration: Mandatory coverage included.
  • Fast Processing: Loans disbursed in 3-5 days.

Application Process

Steps to apply for a vehicle loan with Loanpao:

  1. Visit the Loanpao website or branch.
  2. Submit required documents (ID, income proof, vehicle quote).
  3. Undergo credit and document verification.
  4. Receive pre-approval within 48 hours.
  5. Finalize loan agreement and get funds disbursed.

Loanpao ensures a seamless process with RBI compliance.

Frequently Asked Questions

Guidelines include a 9.5% interest cap, 90% LTV for cars, and a 7-year tenure limit.

Individuals aged 21-65 with a minimum income of ₹25,000 and credit score of 620+.

Pre-approval in 48 hours, disbursement in 3-5 days.