Loan Against Car — Get Cash in 24 Hours Against Your Existing Car

Unlock instant cash using your car as collateral and keep driving it daily. Rates from 11% p.a. | Up to 150% car value | 30+ lenders | 24-hour approval & disbursement

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From 11%
Interest Rate p.a.
24 Hours
Disbursement
Up to 150%
Car Value
Up to 5 Yrs
Flexible Tenure

What is Loan Against Car?

A Loan Against Car (LAC) is a secured loan where you pledge your existing car as collateral to borrow money. Unlike a car loan where you purchase a new vehicle, LAC lets you borrow against a car you already own—and you continue to drive it daily. The car's Registration Certificate (RC) is transferred to the lender as security, but you retain full ownership rights and driving privileges.

Express Credit Hub partners with 30+ banks and NBFCs to offer you the lowest Loan Against Car interest rates in India. Whether you need funds for an emergency, business expansion, education, or debt consolidation, a LAC provides quick access to cash at competitive rates. The entire process—from application to disbursement—takes just 24 hours, making it one of the fastest ways to raise funds without selling your vehicle.

  • Interest rates from 11% p.a.
  • Loan up to 150% of car value
  • Flexible tenure: 6 to 60 months
  • Keep driving your car normally
  • Zero/minimal prepayment charges
  • Minimal documents required
  • Approval in 24 hours

How Loan Against Car Works in 5 Easy Steps

1

Submit Application

Fill out the quick online form with your car details, phone number, and income information. Takes less than 2 minutes.

2

Car Valuation

Our experts assess your car's market value based on age, make, model, and condition. Valuation done within 2-4 hours.

3

Loan Approval

CIBIL check and income verification done instantly. Loan amount sanctioned within 8-12 hours of application.

4

Document & RC Transfer

Upload documents online or submit in person. RC transferred to lender for 6-48 hours (varies by lender).

5

Funds Disbursed

Loan amount credited directly to your bank account within 24 hours. Start repaying as per agreed schedule.

Loan Against Car: Interest Rate Comparison by Top Lenders

Express Credit Hub compares rates from India's leading banks and NBFCs. Here's how major lenders stack up for Loan Against Car:

Lender Interest Rate Max Loan Amount Max Tenure Processing Fee Min Car Age
Tata Capital 11.0% ₹25 Lakh 5 years 1.5% Under 7 yrs
ICICI Bank 11.5% ₹20 Lakh 5 years 1.5% Under 7 yrs
HDFC Bank 11.5% ₹20 Lakh 4 years 2.0% Under 6 yrs
Bajaj Finance 12.0% ₹25 Lakh 5 years 1.5% Under 8 yrs
Mahindra Finance 13.0% ₹15 Lakh 4 years 2.5% Under 10 yrs
Shriram Finance 14.0% ₹20 Lakh 5 years 2.0% Under 12 yrs

Note: Rates listed are approximate and vary based on CIBIL score, income, car condition, and lender approval. Express Credit Hub compares all lenders and gets you the best available rate.

Loan Against Car: Eligibility Criteria

Car Ownership

  • Valid RC in your name
  • Insurance valid
  • No outstanding debt/lien
  • 1-12 years old (varies by lender)

Personal Requirements

  • Age: 21-65 years
  • Indian citizen/resident
  • Valid ID & address proof
  • Regular income source

Credit Profile

  • CIBIL score: 600+ (preferred 700+)
  • No defaults on existing loans
  • No recent legal disputes
  • 3-6 months credit history

Documents Required for Loan Against Car

Car Documents

  • ✓ RC (original & photostat)
  • ✓ Insurance policy copy
  • ✓ PUC certificate
  • ✓ Pollution certificate
  • ✓ Service records (if available)
  • ✓ Recent photographs of car

Identity & Address Proof

  • ✓ PAN card (mandatory)
  • ✓ Aadhaar/Passport/Voter ID
  • ✓ Utility bill or bank statement
  • ✓ Latest 2-3 months bank statements
  • ✓ Mobile number linked to Aadhaar

Income Proof

  • ✓ Salary slips (last 3 months)
  • ✓ IT returns (for self-employed)
  • ✓ Business registration
  • ✓ Bank statements showing deposits
  • ✓ Employment letter (optional)

Note: Document requirements vary by lender. Our team will guide you on exact documents needed once your application is processed.

Loan Against Car vs Personal Loan vs Top-Up Loan

Confused about which loan product is right for you? Here's a detailed comparison of the three most popular options:

Feature Loan Against Car Personal Loan Top-Up Loan
Interest Rate 11-15% 12-24% 9-14%
Max Loan Amount Up to 150% car value (₹50L) Up to ₹25 Lakh 25-50% of original loan
Collateral Required Car (you keep driving) None (unsecured) Existing loan
Approval Speed 24-48 hours 24 hours 48-72 hours
CIBIL Score Required 600+ (preferred 700+) 700+ (strict) 650+
Prepayment Charges Minimal/nil Usually free Varies by lender
Best For Car owners needing quick cash Good credit, no collateral Existing borrowers

When Should You Choose a Loan Against Car?

A Loan Against Car works best in specific financial situations. Here are 5 scenarios where LAC is your ideal choice:

Emergency Medical Expenses

Unexpected hospitalization or medical emergency? LAC offers quick funds at 11% compared to 18%+ for personal loans. Keep your car for daily use.

Business Expansion

Need capital for inventory, equipment, or expansion? LAC provides ₹10-50 lakh at lower rates without affecting your business assets.

Debt Consolidation

Multiple high-interest loans? Consolidate into one LAC at 11-13% and reduce monthly EMI by 20-30% instantly.

Education & Skills

Children's higher education or professional courses? Borrow up to ₹25 lakh at 11% and repay flexibly over 5 years.

Home Renovation

Kitchen, bathroom, or structural repairs? LAC is faster than home loan and you don't lose driving privileges.

Need Cash Today? Get Loan Against Car in 24 Hours

No need to sell your car. Pledge it, get cash, keep driving. Rates from 11%.

Apply Now → WhatsApp Us

Important: Risks to Know Before Taking a Loan Against Car

Car Repossession Risk

If you default on EMIs, the lender can repossess your car after 90-180 days of non-payment. Once repossessed, the car is auctioned to recover dues.

GPS Tracker Installation

Most lenders install a GPS tracker on your car for security. While non-intrusive, some users find this uncomfortable. Tracker is removed after loan closure.

Cannot Sell Your Car

The RC is transferred to the lender. You cannot sell the car until the loan is fully repaid. Early repayment is the only way out.

CIBIL Score Damage

Missing even one EMI hurts your CIBIL score significantly. This impacts future loans, credit cards, and even job applications.

Interest on Interest

If you delay payments, penalty interest is added on top of regular interest. ₹10,000 loan can become ₹12,000 in just 2 months of delay.

Double Liability Risk

If you still owe a car loan EMI and take LAC on the same car, you have dual EMI obligations. Budget carefully to avoid default.

Frequently Asked Questions About Loan Against Car

Can I get a loan against a car that is 10 years old?

Yes, most lenders accept cars up to 10-12 years old depending on brand and condition. However, the loan amount decreases for older vehicles. For a 10-year-old Maruti Swift, you can expect ₹3-5 lakh. The car must have valid insurance, registration, and no outstanding dues. Newer cars (2-5 years) attract higher loan amounts up to ₹10-20 lakh.

Can I get a loan against car without income proof?

Most lenders require some form of income proof. However, if you're self-employed, a bank statement showing regular deposits for 6-12 months can substitute traditional salary slips. Alternatively, your ITR (Income Tax Return) or business registration certificate may be accepted. Some lenders may approve based purely on car value and CIBIL score if you have a strong credit history.

Can I get a loan against car if it's still on EMI?

Yes, you can pledge a car that is still on EMI. However, the RC will show dual ownership (original lender + new lender). You must be current on your original car loan EMI—no defaults. The loan amount will be lower (typically 50-70% of car value instead of 150%) because the lender takes on higher risk. You'll have two EMIs to manage, so budget carefully.

What is the maximum loan amount I can get on a Maruti Swift?

For a new Maruti Swift (up to 2-3 years old), you can get ₹7-10 lakh since current market value is ₹5-7 lakh and lenders offer 150% of value. For older models (5-7 years), expect ₹5-7 lakh. For 8+ year old Swift, typically ₹3-5 lakh. The exact amount depends on car condition, mileage, accident history, and lender policy. Get a free valuation from us today.

Can I get a loan against a two-wheeler or bike?

Yes, you can get a loan against two-wheelers including motorcycles and scooters. Interest rates are similar (11-15%) but the maximum loan amount is lower, typically ₹50,000 to ₹3 lakh depending on vehicle value and condition. The process is the same: RC transfer, documents, 24-hour approval. Two-wheelers depreciate faster, so lenders offer 80-100% of current market value (not 150%).

What happens if I miss an EMI on my loan against car?

Missing an EMI triggers a penalty (2-3% of EMI amount) and your CIBIL score drops immediately. After 90 days of non-payment, the lender can initiate car repossession. After 180 days, your car may be auctioned without further notice. Payment defaults also impact future loans and credit cards. Contact your lender immediately if you face difficulty—many offer payment plans or restructuring options.

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