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Car Loan

The dealership finance desk is not your only option.

Showroom finance is convenient and almost never the cheapest. The margin is built into a rate you are shown for thirty seconds while you are excited about the car. Arriving with your own sanction changes both the price you pay and the conversation you have.

8.70%
Indicative rate p.a.*
100%
On-road funding*
7 yr
Maximum tenure
New/Used
Both financed
What you get

On-road price, not ex-showroom

Funding quoted as a percentage of “on-road” includes registration and insurance; quoted on “ex-showroom” it does not. That single distinction can be a difference of a lakh or more on the amount you must find yourself.

  • Up to 100% on-road funding on new cars for strong profiles
  • Pre-owned vehicles financed, typically at a somewhat higher rate
  • Tenure up to 7 years, useful, but shorter is nearly always wiser
  • Refinance an existing showroom loan taken at a rushed rate
  • Minimal documentation where you already bank with the lender
  • Sanction in principle before you negotiate, so you buy from strength
Talk to an Advisor

Indicative Rate

8.70% p.a.*
  • Up to 100% on-road funding
  • New & pre-owned vehicles
  • Tenure up to 7 years
Is this the right loan for you?

A secured loan against a depreciating asset

The car secures the loan, so rates sit well below a personal loan. But the car loses value faster than the loan amortises in the early years, which is worth understanding before you stretch the tenure.

A good fit if

  • You are buying a new or pre-owned car from a dealer or an individual
  • You would rather keep your savings invested than pay cash
  • You have steady income and a score above roughly 750
  • You want to fix the cost of the car over a defined period
  • You are refinancing an expensive showroom loan taken in a hurry

Worth a rethink if

  • You are stretching to seven years to make an unaffordable car affordable
  • You plan to change the car within two years, when you may still owe more than it is worth
  • The total cost of ownership, insurance, servicing, fuel, is not in your budget
  • You are borrowing for a car while carrying costlier unpaid credit-card debt
What you’ll need

Documentation requirements

Have these ready and we can put a complete file in front of a lender the same week. Missing documents are the single most common reason a good application stalls.

Identity & address

  • PAN card
  • Aadhaar or passport
  • Address proof
  • Driving licence

Income

  • Last 3 months’ salary slips
  • Last 6 months’ bank statements
  • Form 16 or latest ITR
  • Self-employed: 2 years’ ITR

Vehicle

  • Proforma invoice from the dealer
  • Quotation with on-road breakdown
  • For pre-owned: RC, insurance and valuation
  • Existing loan closure letter, if refinancing
Where we add value

Walk in with the money already arranged

A buyer with a sanction in hand negotiates the price of the car. A buyer relying on the showroom desk negotiates whatever is left after the finance margin.

Leverage

Sanction before you shop

Separating the car negotiation from the finance negotiation reliably saves money on both.

Comparison

Beyond the one desk

The showroom typically works with a handful of financiers. We compare across the market.

Clarity

On-road versus ex-showroom

We show the funding against the real number you have to pay, not the flattering one.

Questions borrowers actually ask

Car finance, answered honestly

Is showroom finance ever worth taking?+
Occasionally, manufacturer-subvented schemes on slow-moving stock can genuinely beat the market. The way to know is to have an independent quote in hand to compare it against.
New or pre-owned, does the rate change?+
Yes. Pre-owned vehicles carry higher rates and shorter tenures because the security depreciates faster and valuation is less certain. The gap is often two to four percentage points.
What is negative equity?+
Cars depreciate faster than an early-years loan reduces. For the first couple of years you may owe more than the car would fetch. It matters if you plan to sell early or the vehicle is written off, which is what gap insurance covers.
Should I take the longest tenure?+
Rarely. Seven years lowers the EMI but adds substantial interest and extends the period of negative equity. Take the shortest term you can comfortably service.
Can I prepay a car loan?+
Usually, though most carry a foreclosure charge and sometimes a lock-in of six to twelve EMIs. Check the schedule of charges before signing rather than after.
Do I need to buy the dealer’s insurance?+
No. Comprehensive insurance is required by the lender, but you are free to arrange it yourself, and doing so is frequently cheaper.

All rates, limits and timelines on this page are indicative, vary by lender and by your profile, and do not constitute a loan offer or a commitment to lend. Finnect Capital is an authorised Direct Selling Agent and referral partner, not a bank or NBFC. Every credit decision rests solely with the partner Bank/NBFC. Ask any lender for the Key Facts Statement (KFS) setting out the all-inclusive APR before you sign. See our DSA Disclosure.

Get your sanction before you visit the showroom.

It costs nothing to know your number, and it changes how the conversation goes.

Talk to an Advisor