Overview: Car / Vehicle Loan
A car or vehicle loan helps you purchase a new or pre-owned vehicle. The vehicle typically serves as collateral for the loan.
A Car / Vehicle Loan through PSBLOAN connects eligible Indian borrowers with participating institutional banks and NBFCs. Approvals depend on regular income, credit history (target 750+ CIBIL), and allowable debt-to-income obligations (FOIR). Borrowers can check pre-qualification online or request assisted doorstep documentation guidance across serviceable pincodes.
Who Can Apply
- Salaried or self-employed individuals
- Minimum age: 21 years
- Stable income source
- Acceptable credit history
Key Benefits
- Up to 100% on-road price financing
- Competitive interest rates
- Quick approval process
- Flexible tenure options
Required Documents
- Identity proof (Aadhaar, PAN)
- Address proof
- Income proof (salary slips / ITR)
- Bank statements (last 3–6 months)
- Quotation/proforma invoice from dealer
- Photograph
Application Process
- Check your eligibility online
- Get matched with suitable lenders
- Submit required documents
- Application reviewed by lender
- Receive sanction letter from lender
- Complete agreement formalities
- Disbursement by lender
Indicative Lender Benchmarks & Terms
Indicative rate ranges across participating institutional lender categories in India:
| Lender Category | Indicative APR Bracket* | Processing Fee | Max Tenure |
|---|---|---|---|
| Public Sector Banks | Competitive benchmark rates | 0.5% – 1.0% | Up to max tenure |
| Private Sector Banks | Risk-adjusted pricing | 1.0% – 2.5% | Flexible options |
| Leading NBFCs / HFCs | Flexible underwriting | 1.5% – 3.0% | Customized repayment |
*Source: Industry standard lending policies as of September 2026. Rates and fees vary based on applicant credit score, income stability, employer category, and lender underwriting policies. Subject to lender terms.
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In-depth editorial articles from our certified credit underwriters on car / vehicle loan policies, eligibility formulas, and documentation:
Frequently Asked Questions
Yes, many lenders offer financing for pre-owned vehicles subject to the vehicle's age, condition, and valuation.
Down payment requirements vary by lender and may range from 0% to 20% or more of the vehicle's on-road price.
The vehicle's Registration Certificate (RC) will reflect the lender's hypothecation until the loan is fully repaid.
Prepayment terms vary by lender. Please check the specific loan agreement for prepayment conditions and charges.