Types of Car Loan

New Car Loan

The funds from this loan are used to purchase a brand new car. The interest rate on this type of car loan ranges from 10%-14% and the repayment tenure spans between 1-7 years.

Used Car Loan

This loan is meant for the purchase of a used car. Most lenders provide up to 85% of the price of the car. The tenure for used car vary between 1 - 5 years.

Loan Against Car

This is the third type of loan where the borrower pledges his car as collateral in exchange for much-needed funds. The interest rates for these types of loans vary for diifferent lenders.

Car Loan Against Property

While there is no specific car loan which can be availed against property, you can opt for LAP and use the funds for the purchase of the car.

Car Loan against Credit Card

You can purchase a car by taking a loan on your credit card. The amount you can avail depends on the credit limit on your card.

Car Loan against Fixed Deposit

You can apply for a loan using your Fixed Deposit as collateral. This is considered as an overdraft against your FD account.