Are you wondering how to get quick cash without selling your car? Here’s your answer: Loan Against Car. It’s a smart way to borrow money by using your car as collateral. The best part? You can continue using your car while repaying the loan.
In simple words, Loan Against Car is a secured loan where you pledge your car to get funds. It’s perfect if you need fast money for emergencies, business, or personal needs. You don’t have to sell your car or stop using it. The loan is based on your car’s value, age, and condition.
Let’s explore this step-by-step in this easy, detailed, and beginner-friendly guide.
What is a Loan Against Car? (Introduction)
A Loan Against Car is a secured loan where your vehicle is the security. You can use your car to get a loan without selling it. Whether you own a new car, a used car, or even have an existing car loan, you can still apply.
It’s a quick solution if you need instant funds. The lender gives you a percentage of your car’s current value. You can repay it in flexible EMIs without giving up your vehicle. It’s also known as Loan On Car, Loan Against Used Car, or Loan Against Old Car.
Loan Against Car: Detailed Information
| Feature | Details |
|---|---|
| Loan Type | Secured Loan |
| Purpose | Loan using existing car as collateral. |
| Eligible Vehicles | New Cars, Used Cars, Old Cars (up to 10 years). |
| Loan Amount | 60% to 200% of Car’s Market Value |
| Loan Tenure | 12 to 60 months |
| Loan Against Car Interest Rate | 9% to 14% per annum |
| Minimum EMI | Depends on loan amount and tenure |
| Loan Approval Time | 1 to 3 Working Days |
| Loan Disbursement Time | 24 to 48 Hours After Approval |
| Eligible Applicants | Salaried, Self-Employed, Business Owners. |
| Loan Against Car Without CIBIL | Available from selected NBFCs |
| Loan Without Income Proof | Possible with selected lenders |
| Top-Up Loan | Available on existing car loans |
| Documents Required | PAN Card, Aadhaar Card, Car RC, Insurance, Income Proof (optional). |
| Processing Fees | 1% to 2% of Loan Amount |
| Foreclosure Charges | 0% to 5% (Varies by lender) |
| Prepayment Charges | Applicable with some lenders |
| Car Loan Against Hypothecation | Car hypothecated until loan repayment. |
| Loan Against Car Best Banks | HDFC Bank, ICICI Bank, SBI, Axis Bank, Bajaj Finance, Tata Capital, Paisabazaar. |
| Quick Loan Against Car Available? | Yes, Instant Approval & Disbursal. |
| Loan Application Options | Online, Offline, Through Agents. |
| Loan On Car Without Selling | Yes |
| Available For Old Cars? | Yes, usually up to 10 years old. |
| Interest Calculator | Available on most bank websites. |
| Loan Near Me | Available across India via banks, NBFCs, and agents. |
Disclaimer: The information provided in this table is for general awareness. Interest rates, processing fees, approval times, and terms may vary depending on the lender, applicant profile, car valuation, and location. Please verify the latest details with the respective bank or NBFC before applying for a loan against your car.
How Does Loan Against Car Work?
When you apply for a Car Loan Against Vehicle, the lender checks your car’s age, market value, insurance, and condition. Based on this, they approve a certain loan amount.
The key points:
- You can get up to 60-200% of your car’s value.
- The loan tenure is usually 1 to 5 years.
- Interest rates are lower than unsecured personal loans.
Even if you already have a Loan On Existing Car, you can apply for a top-up. This is called a Loan Against Car Top-Up.
Loan Against Car Eligibility: Who Can Apply?
The eligibility criteria are simple. Here’s what most banks and NBFCs check:
- Age of Applicant: 21 to 60 years.
- Car Age: Most lenders accept cars less than 10 years old.
- Income: Both salaried and self-employed individuals can apply.
- Ownership: The car should be fully owned or financed.
Whether you are looking for a Loan Against Car For Salaried Person or a Loan Against Car For Self-Employed, you can easily qualify if you meet these conditions.
Some lenders even offer Loan Against Car Without Income Proof or Loan Against Car Without Salary Slip if you have a strong banking relationship.
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Loan Against Car Process: Step-by-Step Guide
Getting a Loan Against Car Online or offline is quite easy. Here’s a simple process:
1. Application:
Fill out the form on the lender’s website or visit their branch.
2. Document Submission:
Submit KYC, car RC (registration certificate), insurance papers, and loan history (if any).
3. Car Valuation:
The bank or NBFC will inspect your car’s condition and determine its market value.
4. Loan Approval:
After verification, you will get approval in 1-3 days. This is called Loan Against Car Approval Time.
5. Disbursement:
Loan gets credited to your account quickly. Most lenders offer Loan Against Car Disbursement Time within 24-48 hours.
Loan Against Car Documents: What You Need
Here’s the list of basic documents required:
- PAN Card and Aadhaar Card
- Car RC (Registration Certificate)
- Car Insurance Copy
- Income Proof (Salary Slip, Bank Statement, or ITR)
- Existing Car Loan Statement (if applicable)
For those applying for Loan Against Car Without Bank Statement or Loan Against Car Without Income Proof, some NBFCs might approve based on car value and CIBIL score.
Loan Against Car Interest Rate & Charges
The Loan Against Car Interest Rate usually ranges from 9% to 14% per annum. However, rates can vary depending on the lender and your credit profile.
Here’s what you should know:
- Loan Against Car Lowest Interest is generally offered to people with a high CIBIL score.
- Use a Loan Against Car Interest Calculator to estimate your EMI and total interest.
- Processing fees range between 1% to 2% of the loan amount. These are called Loan Against Car Processing Fees.
- Some lenders may apply Loan Against Car Prepayment Charges if you repay early.
- Check Loan Against Car Foreclosure Charges in case you wish to close the loan before the tenure ends.
Loan Against Car EMI: Easy Monthly Payments
Your EMI depends on:
- Loan amount
- Interest rate
- Tenure
You can find flexible options with Loan Against Car Minimum EMI plans. Use the EMI calculator provided by most banks to plan your budget.
The Car Loan Against Car Value varies. Some lenders may offer loans up to 200% of the car’s value based on the lender’s policy.
Loan Against Car Benefits: Why It’s a Smart Choice
Here’s why many people prefer this over personal loans:
- Quick loan disbursal
- Lower interest rates
- You continue using your car
- Top-up options available
- Simple documentation
- Available even for older cars (depending on lender)
It’s also useful for people looking for Loan On Car Without Selling or needing an Instant Loan Against Car.
Loan Against Car Without CIBIL: Is It Possible?
Some NBFCs offer Quick Loan Against Car even if your credit score is low. However:
- Interest rates may be slightly higher.
- Loan amount may be lower.
If you apply with NBFCs like Pledge Car For Loan Bajaj Finance or Loan Against Car Tata Capital, they may provide flexible options for low CIBIL customers.
Loan Against Car Best Banks and NBFCs (2025)
Here are some of the top options in 2025:
- Quick Cash Loan Against Vehicle HDFC Bank
- Loan Against Car ICICI Bank
- Loan Against Car SBI
- Vehicle Mortgage Loan Axis Bank
- Loan Against Car Bajaj Finance
- Loan Against Car Tata Capital
- Fast Approval Car Loan Paisabazaar (Marketplace to compare offers)
Compare their processing time, interest rates, and prepayment options to choose the best one.
Best Loan Against Car 2025: Top Picks
Here’s a quick comparison:
- HDFC Bank: Fast approval, competitive rates
- ICICI Bank: Easy online application
- SBI: Lower interest for existing customers
- Axis Bank: High LTV ratio for car valuation
- Bajaj Finance: Quick processing, flexible repayment
- Tata Capital: Offers loans on old cars up to 10 years
- Paisabazaar: Compare offers from multiple banks in one place
How To Apply Loan Against Car Near Me?
You can apply in three easy ways:
- Online: Visit your bank’s website or use aggregators like Paisabazaar.
- Branch: Visit your nearest bank branch and speak to a loan officer.
- NBFCs: Apply directly with NBFCs for faster processing and relaxed documentation.
Search “Loan Against Car Near Me” to find local agents or nearby branches for personalized assistance.
Conclusion
A Loan Against Car is one of the best financial tools to get quick cash without losing your car. Whether you need funds for medical emergencies, business growth, or personal needs, this loan gives you instant support with minimal hassle.
It’s perfect for those who want a Loan On Car Without Selling, a Loan Against Used Car, or even a Loan Against Old Car. You can get it online, at your nearest bank, or through trusted NBFCs.
By understanding the Car Collateral Loan Process, eligibility, interest rates, documents, and EMIs, you can confidently choose the right lender and enjoy the benefits.
Make sure to compare offers, check prepayment charges, and calculate your EMI before applying. This way, you’ll get the best deal that matches your financial goals.
FAQs
1. Can I get a loan on my used car?
Yes, many banks and NBFCs offer Loan Against Used Car depending on its age and condition.
2. How much loan can I get against my car?
You can get up to 60-200% of your car’s current market value depending on the lender.
3. Is my car eligible for a loan if it’s more than 5 years old?
Yes, but the maximum car age accepted varies. Some lenders offer Loan Against Old Car up to 10 years.
4. Do I need to stop using my car during the loan period?
No, you can continue using your vehicle while repaying the loan.
5. Can I apply for a loan if I don’t have salary slips?
Yes, some lenders provide Loan Against Car Without Salary Slip based on your car’s value or bank statement.
6. Which banks offer the best loan against car in 2025?
HDFC Bank, ICICI Bank, SBI, Axis Bank, Bajaj Finance, Tata Capital, and Paisabazaar offer competitive options in 2025.
7. Is it possible to get a loan against a car without a CIBIL check?
Yes, a few NBFCs offer Instant Cash Against Car Without CIBIL, but interest rates may be higher.
8. How fast can I get the loan amount?
You can get a Quick Loan Against Car with disbursement in as little as 24 to 48 hours.
Aditya Misra is a car and bike lover who enjoys everything about automobiles. He has a lot of experience with both new and old vehicles and loves sharing his knowledge and excitement. From trying out the latest models to fixing up classic bikes, Aditya’s writing is full of helpful tips and fun stories for anyone who loves cars and bikes.