Types of Car Loan
New Car Loan
This is for cars bought fresh from the showroom. You usually get higher loan amounts and better interest rates.
Used / Pre-Owned Car Loan
Perfect if you’re buying from a dealer or directly from an owner. The loan terms may vary depending on the car’s age and condition, but approval is absolutely possible.
Why Car Loans Are Practical for Most People
Not everyone has lakhs lying around. And honestly? You don’t need to. Here’s why car loans make sense:
- Buy Now, Pay Over Time: Instead of delaying your plans for months or years, a loan lets you get the car you need today and pay for it in manageable EMIs.
- Flexible Options: Loan amounts, down payments, and tenures are quite flexible. Most lenders offer 3–7 years of repayment options, so you can choose an EMI that suits your monthly budget.
- Works for Used Cars Too: Buying a pre-owned car? You can still get a loan. Lenders will simply check the car’s age, condition, and paperwork before approving.
- Keeps Your Savings Intact: Instead of emptying your bank account for a car, you can use your savings for emergencies, investments, or anything else important.
- Mobility Matters: For many people, a car isn’t a luxury — it’s a daily essential. A loan helps you become mobile quickly, whether it’s for office commutes or family travel.
Who Can Get a Car Loan?
Every bank has its own criteria, but these are the typical checks:
- Age Requirement: Most lenders prefer applicants between 21 and 60 years.
- Your Credit Score: A good CIBIL score (700+) improves your chances of approval and may even help you get a better interest rate — especially for used cars.
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Income Stability: Lenders want to be sure you can repay the EMI.,
- Salaried employees: salary slips, Form 16, bank statements
- Self-employed: ITRs, business documents, and bank statements
- Car Documents (mainly for used cars): Banks will check the RC, insurance, and previous loan history (if any).
How Spoctree Makes It Easier
Car loan shopping can feel confusing - comparing banks, checking documents, and understanding eligibility. Spoctree simplifies everything:
- Compare offers from multiple lenders without running around
- Know your eligibility based on your salary or business income
- Get guidance on required documents so your file doesn’t get rejected
- Smooth process from application to loan approval
Whether you’re buying a brand-new car or a reliable used one, Spoctree helps you find a loan that fits your budget and needs - without the stress.
Car Loan Documents Checklist
Personal & Income Documents:
- Aadhaar / PAN / Passport / Driving Licence
- Address proof
- Passport-size photos
- Bank statements (usually last 3–6 months)
For Salaried:
- Latest salary slips
- Form 16 or ITR
- Employment details
For Self-Employed:
- ITR for past 1–2 years
- Business proof
- GST details (if applicable)
- Audited financials (sometimes)
Vehicle Documents (Used Cars Only):
- Registration Certificate (RC)
- Insurance papers
- Seller agreement
- Valuation report (in some cases)
- NOC if the car had a previous loan
Useful Things to Know
- Loan amount: 85–100% of car’s on-road price
- Tenure: 3–7 years
- Used car loan: depends on car condition and age
- Repayment: Always in monthly EMIs