Car Loan​

No Collateral I Up to Rs. 5 Crore I Tenure up to 7 years​

4 reasons to choose our Personal loan

LOAN OF UP TO Rs. 5 Crore




3 unique variants of our Car loan

New Car Loan

A few simple criteria must be met to qualify for our used car loan. You will also need a few documents to complete your application.

Pre-Owned/Used Car Loan

Lenders offer loans to purchase a pre-owned or used car on the condition that the vehicle you intend to purchase is eligible for financing by the lender. Since lenders fund you for an already used vehicle, therefore this type of loan comes with higher interest rates and lower loan-to-value ratios (LTV).Some lenders may offer up to 100% financing while others may offer up to 80%.However, the quantum of amount usually depends on the lender’s valuation of the used car.

Loan Against Car

It is also known as Car refinance loan. This type of loan is a secured loan you have to keep your car as collateral to the lender to avail the funds. The good point is, you can use your car while its still kept as collateral with the bank. The amount of loan to be sanctioned depends upon the car’s current condition and its current on road value.


Do you dream to own a car? But something has been stopping you. For most, the one important reason could be, your dream car is probably out of your budget (budget constraint). If that’s the reason then car loan is the best option for you. As the name suggests, a car loan is an amount given by banks to finance the car of your choice. Car loan is also called Vehicle loans or Auto loans.

Many lenders offer loans worth up to 80% of ex- showroom price of the vehicle you choose to buy. You can repay the loan easily through scheduled EMIs at affordable interest rates within a stipulated tenure. Whether you want to purchase a new car or want to go for an old one, you can finance your car with a car loan. At Mantra, we intend to fulfill your dreams by delivering your dream car right to your doorstep.

Eligibility criteria

• Nationality: Indian
• Intrest Rate: Ranges from 10.50% – 24.00%: At least 1 year
• CIBIL Score: 700 or higher
• Work status: Salaried/ Self Employed Non-Professionals/Self Employed Professionals.
• Age: 21 years to 65 years*
*Higher age limit is applicable at the time of loan maturity.


• KYC documents - Aadhaar/ passport/ voter's ID/ driving license/ letter from NPR/ NREGA job card
• Pan Card/Passport/Birth certificate
• Ration Card/Telephone bill/ Electricity Bill/Rental agreement/Passport Copy/Bank Passbook or statement/Driving License.
• Minimum 3-6 months bank statement (of salary account).
• Gomasta License, Registration Certificate, Service Tax Registration, among others .
• Last 2 years Income tax return. Bank statements for the last 6 months.

DO’s and DON’Ts of car loans

After all those planning and savings, having your own car is a rewarding experience but in the excitement of owing the car you should keep in mind certain dos and don’ts which could be deciding factors in fulfilling your dreams of owing your car.
Here are some do’s and don’ts regarding car loan that will help you get your dream car from the right lender at the right rates.

1. Do choose the right car: Apart from the luxury factor that attracts most car buyers, the other important factor that aspiring car buyers should keep in mind is the purpose for which you are planning to buy a car. What kind of driving will you use the car for? Will it be for your daily commute or weekend trips or for trade purpose as (loading and carriage of goods) etc. Therefore, one should be very clear with the purpose of purchasing the car (at least with the category of vehicle) because remember a car is a major purchase and its price can be as much as or more than a year’s disposable income.

2. Do fetch your credit report before applying: This is another important factor that will play a major role in determining your creditworthiness and deciding upon the interest rates at which loan should be offered to you. While this is not the only criteria for deciding upon the interest rates, a higher credit score will increase the chances of your loan approval. Do compare the lending offers and know the interest rates and charges: Since there is a variety of options available in the market you should better compare the financing offers that lenders are offering and go for the one that fulfill your needs and suits your budget.

3. An ideal loan deal will be to have a reducing loan balance with a low interest rate. However, you should also check the other charges. At Mantra we will help you choose the best deal…. Go for a tenure that suits your budget: Although car loan comes with a tenure of 5-7 years yet you should choose a tenure within which you can complete your repayment.

1. Don’t just simply go for the first financing offer: The car lending marketplace is diverse and full of options. It may happen so your car dealer may offer you financing. But it would be wiser to explore other lenders and their offers before finalizing one.

1. Don’t forget to read the terms and conditions: Read the terms and conditions carefully before finalizing the deal. Many lenders may not verbally tell you about the hidden costs; loan to value ratio, down payment, pre-payment charges etc. Therefore, read the fine print of the offer carefully.

2. It is essential to know not only the interest rate but also the processing fees and other charges because a loan with lower interest rate may actually cost more due to processing fees and other charges.

3. Don’t forget to get car insurance: This is an important aspect in getting a car loan. You should get your vehicle a full cover insurance which is an essential criterion for most lenders who offer loans. It is because in case your car meets an accident before the loan is cleared the lender would be able to clear the balance debt.

4. Do not forget to keep your documents ready before applying: If you keep your documents ready it will make processing faster and you could get your loan sanctioned and disbursed fast.

Frequently asked questions

Purchasing a car is a big deal for many as the price of a car could be equal to or more than one’s annual earnings. A car loan would help you buy your dream car without its price being a burden on your pocket. The price of the car is broken into parts (down payment+ {equated monthly interest}) which makes it quite easier to repay the amount.

Most lenders would finance almost all small, medium and large cars. You can read the brochures to confirm the products they finance.

Applying for a car loan is very simple. You just have to visit our website, read well the various options available, search for the product/model you want to buy, compare the price and the interest rates and choose the product you like at most affordable rates.

You can also directly visit a bank, contact a car loan agent, or apply online.

The amount of the car loan depends upon the value of the car and the EMI that you can pay. While some lenders offers financing up to 85-100% of ex-showroom price of the car, others offer financing of 85-100% of the on-road price.

Some lenders offer loans up to Rs.100- Rs.500Lakhs. 

Just like a personal loan, the tenure of car loan ranges between 5-7 years.

Interest rates on personal loan can be both flat or reducing. In flat rate method, the interest rate is calculated on the principal amount of the loan. On the other hand, in the reducing interest rate, the interest rate is calculated only on the outstanding loan amount on monthly basis in the reducing balance rate method.

The interest rates offered are reasonable and are based on the location of the customer, tenure of loan and customer profile. You can get loans at both fixed and floating rates. Car loans usually begins from 7.00% onwards but varies from lenders to lender.

If you fail to pay EMIs for 2-3 consecutive months, then lenders will consider you as a loan defaulter. In such a case, late fee charges shall be levied on you, upon the unpaid loan amount. If you keep defaulting your EMIs, lender would send you notice requesting you to clear the remaining balance.

If, however you continue defaulting your EMI then lender would be compelled to seize your vehicle against which the loan was availed. Also your credit score will reduce and your credit report will have negative issues recorded.