A loan against car (LAC) is a type of secured loan that allows you to borrow money using your car as collateral. This means that you retain ownership of your car while using it to secure the loan.
LACs are a popular option for individuals who need quick access to funds without having to sell their car.
Loan against vehicle is an attractive borrowing option for people who wish to get secured loans with low interest rates.
To know more about the interest rates or other details about loan against a used car, the table below will help you out.
|Starting from 13% p.a.
|50%- 150% (based on several factors)
|12 to 84 months
|1% - 3%
Interest rates play a pivotal role in loan against car; it impacts the overall borrowing costs and decides how much EMI you would pay monthly.
Check below to see the interest rate offered for loan against car:
|Loan Against Car Interest Rate
|Starting from 13% p.a.
Loan Against Car Fees & Charges encompass the extra costs that might come into play while you use your vehicle for financial assistance.
This table shows the different interest rates and charges for loans against cars.
|13% p.a. onwards
|Up to 6%
|Allowed after 12 months(based on the bank)
|Up to 6% p.a.
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Calculating your EMI for a loan against car is a simple process. It represents the fixed amount you'll repay each month towards your loan. You can choose to calculate the EMI both offline or online. For online calculations, use an EMI calculator. With simple steps you can personalise your EMI calculations and find the best EMI that works for you
|Loan Paid to Date (%)
To calculate it manually, use the formula below:
EMI = P x R x [(1+R)^N] / [(1+R)^N - 1]
If you’re planning to avail a loan amount of RS 50000, with an interest rate of 12%, and a tenure of 5 years, here’s how the calculation would be -
P = Rs 50000
R = 12% i.e., 12/12/100 = 0.0001 (approx)
N (in months) = 60
Now using the formula;
EMI = 50000 * 0.0001 * [(1 + 0.0001)^60 / (1 + 0.0001)^60 - 1]
Your monthly EMI will be around Rs 1,112
Loan against car eligibility refers to the criteria and conditions that individuals need to meet in order to qualify for a loan using their vehicle as collateral.
This financial option allows car owners to leverage the value of their vehicles to secure a loan, providing them with access to funds while retaining ownership and usage of their cars.
Find the detailed eligibility requirements in the table below:
|Between 21 - 65 years(on loan closure)
|650 and higher
For a loan against car there are some requirements that should be met, it could vary based on the lender but some of the common factors are mentioned in the table below:
|Up to 10 years old
|Good condition, free from major damages or accidents
|Comprehensive insurance coverage mandatory
|80% (varies by lender and car model)
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Documents for Loan Against Car are vital for a seamless application process when using your vehicle for financial support. Below is a list of the key documents required for a loan against a car.
Identity proof (any 1):
Proof of address (any 1):
Proof of Income:
Car Ownership Documents:
Repayment Options for Loan Against Car offer flexibility in returning borrowed funds. The points below talk about the varied ways individuals can repay loans secured against their vehicles.
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A loan against car (LAC) is a type of secured loan that allows you to borrow money using your car as collateral. Getting a loan against a car offers several features and benefits, including:
Get secured collateral loan
with lower interest rates
Get flexible repayment
Get quick access to funds
with minimal documentation
Enjoy tax deductions under
Section 80C of the Income
Enjoy lower interest
rates with LACs
Continue to use your car
while servicing the loan,
without the need to sell it.
Navigating the loan against vehicle application process requires careful consideration and informed decision-making. With the right guidance and steps, you can get a personal loan against a car in a breeze.
Check the steps below oh how to apply for a Loan against a used car:
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You can also check other secured loan options from below:
|Loan Against Mutual Funds
|Loan Against Securities
|Loan Against Shares
|Loan Against EPF
|Loan Against LIC Policy
|Loan on Credit Card
|Loan Against Gold
|Loan Against bonds
|Loan Against SGB
|Loan Against FD
|Loan against PPF
|Loan Against Agricultural Land
|Loan Against Property
|Loan Against Insurance Policy
A loan against a car is a secured loan that allows you to borrow money using your car as collateral.
A loan against a car allows you to borrow money using your car as collateral, providing funds while you retain ownership of the vehicle.
To be eligible for a loan against a car, you must meet the lender's requirements, which typically include age, income, credit history, and car ownership status.
The interest rate for a loan against a car typically ranges from 8% to 16%, depending on your creditworthiness, the type of car, and the loan tenure.
The amount you can borrow with a loan against your car depends on the vehicle's value, your creditworthiness, and the lender's policies, typically ranging from 50% to 80% of the car's appraised value
If you default on your loan against your car, the lender may repossess your vehicle to recoup their losses.
No, you cannot get a loan against your leased car because you do not own the car outright. The car's title belongs to the leasing company, and they are the only ones who can borrow money against it.
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