Loan Against Car interest rate and charges

Check the latest interest rate and read about the fees and charges in detail before applying for our loan against car.

Applicable fees and charges

Type of fee

Applicable charges

Rate of interest

9.50% to 22% p.a.

Processing fee

Up to 2.95% of the loan amount (inclusive of applicable taxes).

Documentation charges

Up to Rs. 2,360/- (inclusive of applicable taxes).

Flexi fee

Term Loan – not applicable

Flexi Term Loan (Flexi Dropline) - up to Rs. 999/- (inclusive of applicable taxes)

Flexi Hybrid Loan (as applicable below)

  • Up to Rs. 1,999/- (inclusive of applicable taxes) for loan amount less than Rs. 2,00,000/-
  • Up to Rs. 3,999/- (inclusive of applicable taxes) for loan amount from Rs. 2,00,000/- to Rs. 3,99,999/-
  • Up to Rs. 5,999/- (inclusive of applicable taxes) for the loan amount from Rs. 4,00,000/- to Rs. 5,99,999/-
  • Up to Rs. 6,999/- (inclusive of applicable taxes) for the loan amount from Rs. 6,00,000/- to Rs. 9,99,999/-
  • Up to Rs. 7,999/- (inclusive of applicable taxes) for the loan amount of Rs. 10,00,000/- and above

The charges above will be deducted upfront from the loan amount

*Loan amount includes approved loan amount, insurance premium, VAS charges, and documentation charges.

Prepayment charges

Full prepayment (foreclosure)

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount payable by the borrower as on the date of full prepayment.
  • Flexi Term Loan (Flexi Dropline): up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of such full prepayment.
  • Flexi Hybrid Loan: up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule, during initial and subsequent tenure, on the date of such full prepayment.

Part-prepayment

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part pre-payment.
  • Not applicable for Flexi variants

Annual maintenance charges

Term Loan: Not applicable

Flexi Term Loan (Flexi Dropline):

  • Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan:

  • Up to 0.59% (inclusive of applicable taxes) of the total withdrawable amount during initial tenure.
  • Up to 0.295% (inclusive of applicable taxes) of total withdrawable Amount during subsequent tenure.

Bounce charges

Rs. 1,500 per bounce
“Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.

Penal charges

Delay in payment of instalment(s) shall attract penal charge up to Rs. 25 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from the loan amount.

Legal and incidental charges

Recovery of charges

Repossession charges

Recovery of charges maximum up to Rs. 50,000

Auction charges

Recovery of charges

Valuation charges

Recovery of charges

Stockyard charges

Rs. 118/- per day for 60 days (inclusive of applicable taxes)

Loan re-booking charges

Rs. 1,000/- (inclusive of applicable taxes).

Loan cancellation charges

Rs. 2,360/- (inclusive of applicable taxes) (interest till cancellation to be borne by the customer).

NOC for interstate transfer

Rs. 1,180/- (inclusive of applicable taxes).

NOC to convert from private to commercial

Rs. 3,540/- (inclusive of applicable taxes).

Broken period interest/ pre-EMI interest

Broken period interest/ pre-EMI interest shall mean the amount of interest on the loan for the number of day(s), which is(are) charged in two scenarios:

Scenario 1 – beyond 30 days from the loan disbursal date until charging the first EMI:

In this scenario, we recover broken period interest through the following methods:

  • For Term Loan: Added to the first instalment amount
  • For Flexi Term Loan: Added to the first instalment amount
  • For Flexi Hybrid Loan: Added to the first instalment amount

Scenario 2 – within the initial 30 days from the loan disbursal date until charging the first EMI:

In this scenario, we charge interest based solely on the actual number of days since disbursing the loan.

How to apply for a loan against car

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Step-by-step guide to apply for a loan against car

  1. Click on the 'APPLY' button on this page.
  2. Fill in your asset details such as the loan active on your car, make, model, variant, and more.
  3. Fill in the application form with your personal information, such as your name, mobile number, email ID, pin code, residence type and type of employment.
  4. Submit your loan against car application.

Our representative will call and guide you on the next steps. The loan amount will be transferred to your bank account once your documents are successfully verified.

Frequently asked questions

What is the processing fee for loan against car?

The processing fee for a Bajaj Finserv Loan Against Car goes up to 2.95% of the loan amount (inclusive of applicable taxes).

Is there a charge applicable on part-prepayments?

There is a fee of 4.72% (inclusive of applicable taxes) on the part-payment amount paid. However, if you opt for a Flexi Loan, you can part-prepay as per your convenience without an additional charge.

What does bounce charge mean?

Bounce charge is the fee you have to pay if you miss an EMI payment. Rs. 1,500 per bounce is applicable on your missed EMIs

“Bounce charges” shall mean charges for non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.

Note: Delay in payment of instalment(s) shall attract penal charge up to Rs. 25 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

What is the interest rate for loan against car?

You can get Bajaj Finserv Loan Against Car at competitive interest rates which range from 9.50% to 22% p.a.

What are the factors that affect loan against car interest rates?

There are several factors that affect your loan against car interest rates. These may include:

  • Credit score: A higher credit score typically leads to a lower interest rate, as it signifies a lower risk for the lender.
  • Loan amount: The amount being borrowed can affect the interest rate. A larger loan amount might have lower interest rates, while a smaller loan amount may have higher rates.
  • Loan tenure: The tenure of your loan can influence the interest rate. Shorter tenures may have lower rates compared to longer tenures.
  • Value of the car: The value of the car being used as collateral is a crucial factor. Lenders typically offer lower interest rates for vehicles with higher values.
Are there any additional or hidden charges applicable on a loan against car?

A Bajaj Finserv Loan Against Car comes with no hidden costs. All our fees and charges are mentioned on our website and in the loan agreement. It is recommended that you thoroughly review the fees and charges before applying. You can also click here to know more about the documents required for our loan against car.

How is the interest rate calculated on a loan against car?

There are various factors that affect loan against car interest rates. Lenders consider the borrower's creditworthiness, the car's value, loan amount, and prevailing market rates. A higher credit score typically leads to a lower interest rate. Additionally, the loan term and down payment may influence the rate. It is crucial to shop around for the best offers. Use our loan against car EMI calculator to determine your monthly instalments.

Does loan against car come with fixed or variable interest rates?

The interest rate on a loan against car can be fixed or variable, depending on the lending institution's terms and conditions. Bajaj Finserv Loan Against Car is available to you at fixed interest rates starting at 9.50% p.a.

Can I get a loan against car with 0% interest?

It's highly unlikely to get a loan against car with 0% interest. Lenders typically charge interest to offset the risk of lending. However, some financial institutions might offer promotional rates or deals, but they often come with conditions or limited timeframes. It is essential to research and compare options.

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