Buying a car is a big financial decision. You may want a bigger, more comfortable, or feature-rich car without putting too much pressure on your monthly budget. SmartDrive+ from Bajaj Finance gives you a flexible way to finance your car. It considers the car’s estimated residual value, which is its expected resale value after a selected period, while planning your loan repayment.
A part of the loan amount is kept payable for later. Your initial EMI is calculated on the remaining amount. This can reduce your monthly EMI by up to 35%*, subject to applicable terms.
For example, suppose you take a car loan of Rs. 10 lakh. If Rs. 4 lakh is considered the estimated residual value, your initial EMI may be calculated on Rs. 6 lakh instead of the full loan amount. This can make your initial monthly payments easier to manage. The remaining amount can be handled after the selected SmartDrive+ period through the available repayment options.
SmartDrive+ may be available for eligible new or used cars, depending on the applicable product terms and Bajaj Finance approval.
Start with a simple shift in thinking
In a regular car loan, your EMI is calculated on the full loan amount from the beginning. This can result in a higher monthly payment throughout the loan period.
SmartDrive+ works differently. A part of the loan amount, based on the car’s estimated residual value, is kept payable for later. Your initial EMI is calculated on the reduced loan amount.
This structure can help lower your initial EMI while allowing you to drive your chosen car from the beginning. The remaining amount is handled after the selected initial SmartDrive+ period ends.
In simple terms, SmartDrive+ gives you the flexibility to upgrade today while managing your monthly cash flow more comfortably.
How SmartDrive+ works
Here is the simple idea: instead of paying EMIs on the entire financed amount from day one, SmartDrive+ divides your repayment into two parts:
- Pay for what you use: Your EMI is calculated on a reduced principal amount during your selected tenure. This can help lower your monthly payments. You can choose from tenure options of 3, 4, or 5 years.
- Future value: The car’s estimated resale value, also called the residual value, is kept aside for later.
You can choose the SmartDrive+ period from the options available for your car loan. The available period may vary depending on whether you are financing a new or used car.
SmartDrive+ can reduce your monthly EMI by up to 35%* compared to a regular car loan. The actual benefit depends on factors such as:
- Approved loan amount
- Selected car
- Interest rate
- SmartDrive+ period
- Estimated residual value
- Applicable loan terms
A simple example to understand SmartDrive+
Suppose you take a car loan of Rs. 10 lakh. Based on the car and applicable loan terms, Rs. 4 lakh is considered the estimated residual value and kept payable for later.
Your initial EMI will be calculated on Rs. 6 lakh instead of the full Rs. 10 lakh. This can make your monthly payments lower during the selected initial SmartDrive+ period.
After this period ends, the remaining Rs. 4 lakh can be paid through the available repayment options.
Note: This example is for illustrative purposes only. The actual loan amount, residual value, EMI, interest rate, tenure, and repayment structure may be different.
Move from practical to premium with more confidence
Your next car may be more than a basic mode of transport. You may want better comfort, more space, improved features, or a stronger presence on the road.
For example, you may currently drive a Maruti Suzuki Swift or Baleno and want to move to a larger SUV such as the Hyundai Creta. The upgrade may offer more cabin space, greater comfort, and additional features.
With SmartDrive+, such an upgrade can be easier to plan. Its lower initial EMI structure may help keep your monthly outflow closer to your planned budget during the selected period.
Note: SmartDrive+ does not guarantee approval for a particular model or variant. However, its flexible repayment structure may help you consider options beyond a basic car.
What you can do at the end of the tenure
When your chosen tenure ends, you can choose from the following options:
- Keep the car: You can pay the residual amount and close the loan.
- Continue the loan: If you do not want to pay the residual amount at once, you can continue the loan and repay the remaining amount through EMIs, subject to the applicable terms.
SmartDrive+ is designed for buyers who want to experience a better car without limiting their choices at the start. It gives you the flexibility to consider a higher variant, advanced features, better comfort, or a more premium model while keeping your monthly plan balanced.
You can enjoy the car you truly want today and review your next step later. You may continue with the same car or plan an upgrade after settling the outstanding amount. This makes the ownership journey more flexible, confident, and future-ready.
*Terms and conditions apply.
