A car loan is a financial product offered by banks and other financial institutions that enables individuals to purchase vehicles for personal and family use. Typically, banks provide car loans for the acquisition of brand-new or reconditioned unregistered vehicles. Additionally, some banks also finance the purchase of used vehicles, and we likewise offer financing options for second-hand cars. 

Just log in to our FinCoach platform, enter some basic information, and get a free comparison of all available car loan facilities in the market. You can choose the one that suits you best and apply directly through our online platform. It’s a hassle-free 24/7 service. 

Yes, you can purchase a used car through certain banks, and we also provide financing options for second-hand vehicles.

No. The car itself serves as the collateral, as it is the underlying asset. Banks/financial institutions secure the loan by registering the vehicle jointly in their name. 

Your loan application may be rejected if you do not meet the bank’s minimum eligibility criteria, such as minimum income level, age requirement, previous relationship with the bank, a higher debt burden ratio, or if you have defaulted on repayments or applied for and been rejected for loans multiple times, etc.

Banks/financial institutions normally require documents that help assess your loan repayment capacity, along with vehicle-related documents. The general required documents include a salary certificate, income proof, business registration documents (if applicable), bank statements, utility bill copies, NID, passport, vehicle quotation, etc.

In general, banks or financial institutions provide a maximum tenure of up to five years; however, this may vary from one bank/institution to another. 

It depends on the individual bank’s or financial institution’s credit norms. In general, if your income is sufficient, no guarantor or co-borrower is required. However, some banks may still require one even if your income is sufficient to cover the debt.

Car loans do not cover insurance or registration fees that must be paid at the time of purchasing a vehicle. Car insurance, which is mandatory, must be purchased separately, and all vehicle registration-related costs must also be borne by the borrower, as they are not included in the car loan. However, a few banks or financial institutions offer special schemes that may include these costs.

Yes, you can, but it depends on the respective bank’s policy. Some banks allow pre-payment free of cost, while a few others impose charges. 

No. Lenders who provide car loans to individuals only allow the vehicle to be sold to a new owner once the loan has been fully repaid. This is because you need to obtain a NOC from the bank before selling your car, and this document is issued only after the car loan has been fully paid off.

Loan repayment can be made through post-dated cheques (PDCs) provided by you to the lender at the time of signing up for the car loan. Another option is the auto-debit facility, where the EMI is automatically debited from your savings account.

Generally, banks treat you as a defaulter if you fail to pay two or more EMIs on time. You will initially be charged a penalty fee and asked to regularise your payments. If you fail to do so after repeated notifications, the financial institution may legally repossess your vehicle. 

Yes. FinCoach allows you to apply to different financial institutions for car loans, and you can avail of these facilities.