Instant Liquidity • Keep Your Keys
Instant Funds
Against Your Car
No Sale Required.
Get a loan of up to 85% of your car's market value. Enjoy the lowest interest rates and fast processing, all while you continue to drive your vehicle.
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10,000+ Car Owners
Fastest disbursal in the industry
Quick Approval
24 Hours
Minimal Documentation
Maximum LTV
Up to 85% Value
Why Do your Choose Us?
Flexible loans, instant credit score checks, and fast approvals. We make borrowing easy, transparent, and tailored to your needs
Flexible
Our loan options are designed to adapt to your financial situation. Choose flexible repayment terms and loan amounts that work for you.
Simple, Fast, and Secure
Get instant credit score updates and apply for loans with confidence. We ensure a smooth, secure, and reliable experience.
Personalized
Loans designed to match your unique financial needs. Enjoy flexible options, fast approvals, and a borrowing experience tailored just for you.
Loan Details
Car Loan
Get instant funds for your car with our flexible loan options.
Instant Approval
No Hidden Charges
100% Digital Process
Representative Example:
Borrow ₹5,00,000 over 12 months at 25.8% APR. Total repayment: ₹5,72,597.07 with monthly EMIs of ₹47,716.42.
EMI Calculator
₹5,00,000
12
25.8%
Monthly EMI
₹47,716.42
Total Interest
₹72,597.07
What is a Loan Against Car?
A loan against car (also called a car asset loan) is a secured loan where you use your already-owned car as collateral to raise funds. You keep driving the vehicle while the lender holds the RC and original documents until repayment.
Repayment is done through fixed monthly EMIs over a tenure ranging from 12 to 60 months. Once the final EMI is paid, the lender releases your documents and removes the lien.
Eligibility depends on:
- Car’s age (usually up to 10–12 years old)
- Current market value of the vehicle
- Clean ownership & valid insurance
- Applicant’s income & repayment ability
Even borrowers with low CIBIL scores are often approved because the loan is secured against a physical asset.
Financial Guide
Loan Against Car Interest Rates
Loan against car interest rates typically range from 12% to 18% per annum. Since the loan is secured against your vehicle, rates are significantly lower than unsecured personal loans. Some NBFCs offer rates starting as low as 11% for cars less than 3 years old with high resale value.
Smart Borrowing with Your Car
A loan against your car is quick and convenient—but using it wisely makes all the difference. Here is how to get the most out of this facility without stress:
1
Know Your Car's True Value
Before applying, check your car's current resale value on platforms like CarDekho or Orange Book Value. Lenders typically offer 50–80% of this amount. Knowing this helps you negotiate better.
2
Choose Shorter Tenures When Possible
Car values depreciate every year. If you take a 5-year loan on an 8-year-old car, the outstanding amount may exceed the car's value by year 3. Shorter tenures keep you safe.
3
Compare Hypothecation Charges
Different lenders charge different fees to release the hypothecation after loan closure. These can range from ₹500 to ₹2,500. Ask upfront—it saves surprises later.
4
Avoid Multiple Loans Against Same Car
Some borrowers take a second loan from another lender without closing the first. This is illegal and leads to legal trouble and vehicle seizure. Always close the existing loan first.
5
Interest Is Calculated on Reducing Balance
Most lenders use the daily or monthly reducing balance method. If you prepay a chunk of the principal mid-cycle, your interest for the remaining days drops immediately.
Loan Against Car Eligibility
Check eligibility Banks and NBFCs provide loans against your car based on the vehicle’s value, ownership history, and your repayment capacity.
Vehicle Ownership: Applicant must own a car in good condition with valid registration and insurance.
Vehicle Age: Most lenders accept cars up to 8–10 years old at the end of the loan tenure.
Credit Score: Preferred CIBIL score of 650+ for faster approval and better interest rates.
Income Criteria: Stable income source required (salaried or self-employed) to ensure repayment ability.
Loan-to-Value (LTV): Loan amount usually ranges from 50% to 80% of the car’s current market value.
KYC & Documents: Standard KYC, income proof, RC book, insurance copy, and bank statements required.
Age Limit: Applicant age typically between 21 and 65 years at loan maturity.
Loan Against Car Fees and Charges
Loan against car fees are generally lower than personal loans since the vehicle serves as collateral. However, charges vary across lenders—here is what to expect:
| Particulars | Charges |
|---|---|
| Processing Fees | 0.5% to 2.5% of the loan amount (Often capped at ₹5,000 - ₹10,000) |
| Part-Payment Charges | Nil to 2% on outstanding amount (Many NBFCs allow free part-payment) |
| Foreclosure Charges | Nil to 3% (Some lenders waive this after 12-24 EMIs) |
| Documentation Charges | ₹ 500 - ₹ 2,500 (Covers RC verification, hypothecation filing) |
| Hypothecation Release Fee | ₹ 500 - ₹ 2,500 (Charged to remove lender's name from RC after loan closure) |
| Penal Interest | 1.5% to 2.5% per month on overdue EMI amount |
| Vehicle Inspection Fee | ₹ 500 - ₹ 1,500 (One-time, collected at application stage) |
Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.
Loan Against Car vs New Car Loan
Both use your car as collateral—but one is for buying, the other for borrowing. Here is how they differ:
| Loan Against Car | New Car Loan |
|---|---|
| You already own the vehicle | You are purchasing the vehicle |
| Funds can be used for any purpose | Funds strictly used to buy the car |
| Loan amount based on car's current value | Loan amount based on car's on-road price |
| Tenure: 1 to 5 years | Tenure: 3 to 7 years |
| Interest Rate: 12% – 18% p.a. | Interest Rate: 8% – 14% p.a. |
| Processing Fee: 0.5% – 2.5% | Processing Fee: 0.5% – 2% (Often waived) |
| Documents: RC, insurance, income proof | Documents: Invoice, income proof, dealer forms |
| Best for: Urgent cash needs, low CIBIL | Best for: Buying a brand new vehicle |
Why Apply for a Loan Against Car on SIX Finance?
SIX Finance connects you with multiple lenders offering loans against your car—all in one place. Instead of visiting bank branches or running from one NBFC to another, we show you real-time offers ranked by your approval chances. Whether your car is 5 years old or 12, we help you find a lender who values your vehicle fairly and disburses cash fast.
Benefits of Applying for a Loan Against Car
- Compare interest rates and loan amounts from 20+ lenders side-by-side
- Get offers based on your car’s make, model, and age
- Know your approved loan amount before you apply
- Zero paperwork options available for select lenders
- No need to surrender your car—keep driving
- Disbursal in as little as 2–4 hours after approval
- Track your application status in one dashboard
Loan Against Car Documents
Minimal documentation required. Most lenders accept digital copies via app or email. Physical RC handover is needed only at the time of disbursal.
| Requirements | Salaried | Self-Employed |
|---|---|---|
| Identity | PAN Card, Aadhaar, Voter ID, Passport (any one) | PAN Card, Aadhaar, Voter ID, Passport (any one) |
| Vehicle | RC (Registration Certificate), Insurance, PUC, Form 29/30 if applicable | RC (Registration Certificate), Insurance, PUC, Form 29/30 if applicable |
| Income | Last 3 months salary slips OR last 6 months bank statements | Last 2 years ITR, GST returns (if applicable), 6 months bank statements |
| Residence | Aadhaar, utility bill, rental agreement, passport (any one) | Aadhaar, utility bill, rental agreement, passport (any one) |
| Photos | Passport size photograph, car photographs (front, side, interior) | Passport size photograph, car photographs (front, side, interior) |
Loan Against Car Tips
Vehicle Hypothecation
- Lender’s hypothecation will be marked on the car’s RC during the loan tenure.
- You must apply for hypothecation removal from the RTO after full loan repayment.
Credit Score Impact
- Timely EMI payments help improve your CIBIL score.
- Missed payments or defaults can affect eligibility for future loans like home or personal loans.
Loan Amount & Valuation
- Loan amount depends on the car’s current market value and condition.
- Most lenders finance around 50–80% of the vehicle’s valuation.
Interest Rates & Charges
- Interest rates are usually lower than personal loans since the car is collateral.
- Check processing fees, foreclosure charges, and late payment penalties before applying.
Documents Required
- RC book, valid insurance, identity proof, address proof, and income documents are mandatory.
- Recent bank statements are often required for approval.
Who Can Apply?
Salaried: Instant approvals with last 3 months salary slips or bank statements.
Self-Employed: Loans approved based on ITR, GST returns, or even just business vintage for smaller amounts.
Low CIBIL Borrowers: Often eligible because the loan is secured against your car—lenders care more about the vehicle's value than your score.
Pensioners: Many NBFCs offer loans against car to senior citizens with regular pension credits.
Co-owners: If the car is jointly owned, all co-owners need to sign as co-applicants.
4 Simple Steps to Get Cash
Check your car's current market value on any used car portal.
Upload RC, insurance, and basic KYC documents on the lender app or website.
Get the car inspected at your home or office (takes 15–20 minutes).
Sign the digital agreement, hand over RC copy, and funds hit your account in hours.
Smart Borrowing Tips
Using your car as collateral? Keep these things in mind:
- Never hand over physical possession of the car. Lenders only need documents, not the vehicle itself.
- Ask about part-payment options before signing. Many NBFCs allow you to prepay chunks without penalty.
- Check if the lender offers a 'Top-Up' loan later. Some let you borrow more as your car's EMI reduces.
- Get the hypothecation removal charges in writing upfront. This avoids last-minute surprises at loan closure.
- Compare at least 3 lenders. Interest rates can vary by 3–4% for the same car and loan amount.
- If your CIBIL is low, apply with an NBFC first. They are more flexible than banks for secured loans.
Loan Against Car Facts
- You can get a loan even if your car is 10–12 years old, but loan tenure will be shorter.
- Interest rates are 30–40% lower than unsecured personal loans for the same borrower.
- The loan is registered with the RTO as a hypothecation charge on your RC.
- Some lenders offer 0% foreclosure charges if you close the loan after 12–18 months.
- Women borrowers often get 0.05% to 0.10% lower interest rates on vehicle loans.
- Loan against car is one of the few products where pensioners are easily approved.
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