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.

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Applicable fees and charges

Type of fee

Applicable charges

Rate of interest

10% to 19% 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

In case of default of repayment instrument, Rs. 1,500/- per bounce will be levied.

Penal interest

 Delay in payment of a monthly instalment shall attract penal interest at the rate of 3.5% per month on the monthly instalment outstanding, from the respective due date until the receipt of the monthly instalment.

Stamp duty (as per respective state)

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

Legal and incidental charges

Actual legal and incidental charges under applicable laws

Repossession charges

Repossession charges at actual with a maximum capping of Rs. 50,000/- (inclusive of applicable taxes)

Auction charges

At actuals

Valuation charges

At actuals

Stockyard charges

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

Mandate rejection charges

Rs. 450/- per month from the first month of due date for mandate rejected by customer’s bank until the new mandate is registered.

Loan re-booking

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).

Duplicate NOC

Rs. 500/- (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
  • For Flexi Term Loan: Added to the first instalment
  • For Flexi Hybrid Loan: Added to the first instalment

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 up to 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.

For every missed EMI, we charge Rs. 1,500 per bounce (inclusive of applicable taxes). Any delay in payment of monthly instalment/ EMI shall attract penal interest at the rate of 3.50% per month on the monthly instalment/ EMI outstanding, from the date of default until the receipt of the monthly instalment/ EMI.

What is the interest rate for loan against car?

You can get Bajaj Finserv Loan Against Car at competitive interest rates which range from 10.50% 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.

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.

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 10.50% p.a.

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