New Car Loan interest rate and charges

Check the car loan interest rate and other fees and charges applicable before applying for our new car loan.

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Applicable fees and charges

Type of fee

Applicable charges

Rate of interest

7.50% to 14% p.a.

Processing fees

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 Loan variant (as applicable below) - will be deducted upfront from the loan amount

  • Up to Rs. 999 (inclusive of applicable taxes) for a loan amount up to Rs. 9,99,999
  • Up to Rs. 1,499 (inclusive of applicable taxes) for a loan amount of Rs. 10,00,000 and above

*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 such full prepayment
  • Flexi Hybrid Loan/Flexi Term 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-prepayment
  • Not applicable for Flexi Loan variants.

Annual maintenance charges

Term Loan - Not applicable

Flexi Term Loan

  • 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 the initial tenure
  • Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount during the 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 Charge

Delay in payment of instalment(s) shall attract Penal Charge of Rs. 20 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)

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).

Duplicate NOC

Rs. 500 (inclusive of applicable taxes).

Other NOC

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

Broken period interest/ pre-EMI interest

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

Scenario 1 – More than 30 days from the date of loan disbursal till the first EMI is charged.

In this scenario, broken period interest is recovered by the following method:

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

Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged:

In this scenario, interest is charged only for the actual number of days since the loan was disbursed.
Loan cancellation charges

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

Note - In the event of loan cancellation, customer shall also bear the interest accrued on the loan till the date of cancellation and stamp duty charges levied on loan at the time of loan origination.
Cash collection handling charges Rs. 177 (inclusive of applicable taxes) will be charged if the customer opts to make payment in cash when the collection is done by the collection agents. This fee is charged only once per month, regardless of the number of payments made against multiple LANs.
Cash deposit charges Customers will incur a cash deposition charge of Rs. 50 (Inclusive of Applicable taxes) when making cash payments at our branch offices.
Platform fees Rs. 11 (Inclusive of Applicable taxes) will be charged for utilising the payment gateway to make part or full payments towards the loan through digital properties.

Factors affecting car loan interest rates

Several key factors directly influence car loan interest rates, affecting the cost of financing a vehicle:

  1. Credit score: One of the most significant factors determining car loan interest rates is the borrower's credit score. A higher credit score indicates a history of responsible credit management, leading to lower interest rates. Conversely, lower credit scores often result in higher interest rates to compensate for perceived higher risk.
  2. Loan amount and tenure: The amount of money borrowed, and the duration of the loan are crucial factors in determining car loan interest rates. Larger loan amounts or longer loan tenures typically come with higher interest rates, as they represent greater risk for lenders.
  3. Down payment: The size of the down payment made by the borrower plays a significant role in determining new car loan interest rates. A larger down payment reduces the loan amount, thereby lowering the lender's risk. This reduction in risk often translates into lower interest rates for the borrower.
  4. Income and employment history: Lenders assess the borrower's income stability and employment history to gauge their ability to repay the loan. Stable income sources and longer employment tenures generally lead to lower new car loan interest rates, as they indicate a lower risk of default.
  5. Debt-to-income ratio: Lenders also consider the borrower's debt-to-income ratio (DTI), which compares the borrower's monthly debt obligations to their gross monthly income. A lower DTI suggests that the borrower has sufficient income to cover additional debt, potentially resulting in lower interest rates.

Understanding these factors is essential for borrowers seeking to secure the most favourable car loan interest rates. By focusing on improving their credit score, making a substantial down payment, maintaining a stable income, and managing debt responsibly, borrowers can enhance their eligibility and access competitive interest rates from lenders.

How to apply for new car finance

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Step-by-step guide to applying for new car loan

1. Click on the 'APPLY NOW' button on this page to begin.
2. Enter your 10-digit mobile number and submit the OTP for verification.
3. Fill in the application form with details such as your PAN, date of birth, PIN code, and more.
4. Select the name of your finalised car brand and dealer.
5. Verify your KYC details to proceed.
6. Submit your banking details to complete your application.

Our representative will contact you regarding the next steps.

Frequently asked questions

What is the processing fee for a new car loan?

For a Bajaj Finance New Car Loan, the processing fee can go up to 2.95% of the loan amount. This is inclusive of applicable taxes.

Is there any charge applicable on part-prepayments?

On the part-payment amount paid, there is a fee of up to 4.72% (inclusive of applicable taxes). However, there are no part-prepayment fees if you apply for one of our Flexi Loan options.

What are bounce charges and penal interest charges on a new car loan?

When an EMI payment cannot be completed because of inadequate funds, a bounce charge is levied. We charge 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.

Please note that any delay in payment of instalment(s) shall attract penal charge of Rs. 20 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 a new car loan?

You can get a Bajaj Finserv New Car Loan at a reasonable interest rate starting at 7.50% p.a. to 14% p.a.

What is the maximum and minimum repayment tenure?

You can pay back your new car loan within 12 months to 96 months. You can therefore spread out your EMIs over a maximum of 8 years.

How can I get a lower interest rate on a car loan?

To secure a lower interest rate on a new car loan, focus on improving your credit score by paying bills on time and reducing outstanding debt. Make a larger down payment to decrease the car loan amount and reduce the lender's risk. Compare offers from multiple lenders and negotiate terms based on your creditworthiness and financial stability. Additionally, consider opting for a shorter loan term, as shorter terms often come with lower interest rates.

Can I negotiate with the lender car loan interest rates?

Your creditworthiness, income stability, and willingness to make a substantial down payment are some of the ways that can help you negotiate your car loan interest rates.

How does my credit score affect my car loan interest rate?

Your credit score significantly influences your car loan interest rate. Higher credit scores generally qualify for lower interest rates, saving you money over the loan term. Lower scores may result in higher rates or even difficulty securing a loan. Lenders use credit scores to assess risk; a strong score signals reliability in repayment, whereas lower scores suggest higher risk.

How do I calculate my car loan interest rate?

Your car loan interest rate is determined by several factors such as the loan term, credit score, loan amount you wish to borrow and more. You can use our online new car loan EMI calculator to evaluate your monthly instalments in advance. This calculator will also help you to find the overall interest amount you need to pay.

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