Secured and unsecured loans work in different ways. A secured loan is backed by an asset. This asset acts as security for the lender. If repayments stop for a long time, the lender can use the asset to recover the pending amount. Because the lender’s risk is lower, secured loans often come with lower interest rates.
An unsecured loan does not require any collateral. Approval depends more on your credit profile and repayment history. Since the lender takes higher risk, unsecured loans usually carry higher interest rates and may need a stronger credit record. The right choice depends on your needs, comfort with risk, and whether you have an asset you can pledge.
What is a secured car loan?
Most car loans are secured loans. The car you buy is usually treated as the collateral for the loan. This means the vehicle supports the loan agreement. If repayments are not made as per the agreed terms, the lender may have the right to repossess the car to recover the outstanding dues.
Because the loan is backed by the car, the lender’s risk is lower. This is one reason secured car loans can be more approachable for many borrowers, including those with different credit backgrounds. It also makes the loan structure clearer, since the car value plays a role in the loan amount offered.
If you are planning a purchase, a car loan can help you manage the cost in monthly instalments instead of paying the full amount upfront.
Bajaj Finance offers two types of secured car loans – used car loans and new car finance. Used car loans support the purchase of a pre-owned car, while new car finance supports the purchase of a new car. You can choose the type based on your requirement. The eligibility conditions and documents can differ based on the loan you opt for, but the overall process stays simple and structured.
If you prefer to start with clarity, it helps to know your starting position early. You can check your pre-approved new car loan offer at the planning stage itself, so your shortlist stays aligned with what you may qualify for.
Features of our used car loans
As the name suggests, you can opt for used car loans to fund the purchase of your second-hand car. Bajaj Finance offers used car loans that come with a host of features such as:
- High-value finance: With our asset-based financing, you can get a loan of up to 100% of the car’s value.
- Quick disbursal: Our used car loans come with a speedy disbursal facility. You can get the funds you need within 48 hours* of approval.
- Flexible tenures: Spread the cost of your car over a repayment period of up to 84 months and repay your loan with ease.
- Loan up to Rs. 2.50 crore: Get easy access to substantial loan amounts with Bajaj Finserv Used Car Loan and bring home your dream car easily.
Features of our new car loans
Bajaj Finance offers high-value new car loans that can help you fund the purchase of a new car. These new car loans come with a host of attractive features such as:
- Loan up to Rs. 10 crore: Get a high-value loan and bring home the car of your choice with ease.
- Quick approval: Our speedy approval facility provides you with quick access to funds so that you can purchase your dream car without delay.
- Flexible repayment tenures: Repay your loan with ease over a long repayment period of up to 96 months.
- Minimal documentation: Our new car finance requires just a handful of documents. All you need to submit is your KYC documents, PAN card, salary slips and more.
If you are setting your car budget, it helps to know your borrowing range early. Check your new car loan eligibility to see how much you can borrow before you finalise the car.
Why choose Bajaj Mall for your car purchase
When you are choosing between a new car and a used car, the right shortlist makes everything easier. Bajaj Mall helps you compare models and variants in one place, so you can focus on what fits your needs and budget without jumping between multiple sources.
Once you finalise your preferred car, financing can be completed smoothly with the Bajaj Finserv New Car Loan. It offers:
- Up to 100% financing of the on-road price
- Competitive car loan interest rates
- Flexible repayment tenures
- Quick approval and minimal documentation
You can also plan your monthly instalments using the car loan EMI calculator, which helps you set a comfortable EMI and keep your budget balanced.
With Bajaj Mall, comparing and booking your preferred car becomes more straightforward, while the Bajaj Finserv New Car Loan supports a smoother purchase journey.
If you want to avoid delays at the planning stage, you can check your pre-approved new car loan offer and move ahead when you are ready.
