Loan against Car

Avail pre-approved offers for loan against your existing car

Parallel Car Loan (Loan against Car)

Loan against Car is one viable option if you require immediate finances. Taking a loan against a vehicle is a common practice if you need funds in a hurry. This type of loan will allow you to raise funds against your asset i.e. your car and meet any emergency need easily.

Banks hire an expert to assess your car's current market value. Axis Bank offers up to 50% of the value of the vehicle. The minimum loan amount is Rs 1 lakh. Once your application for Loan Against Car is approved, you cannot sell your car until you fully repay your loan. The repayment period usually varies, and you may have up to two years to repay the loan. 

Features and Benefits for Loan Against Used Car or New Car

  • Axis Bank provides Loans Against Cars, with a maximum loan amount of Rs 1 lakh to eligible customers
  • If you are a privileged customer at Axis Bank, you receive the benefit of pre-approved loans and require very minimal documentation. You can also enjoy the added advantage of attractive interest rates and faster loan approval
  • You can obtain up to 50% of your car's value as a loan

Eligibility criteria and documents required

To be eligible for a Loan Against Car, you must fulfil the following criteria:

  • You must be between 21 and 65 years old when applying
  • Whether you are a salaried individual or a self-employed individual, you are eligible to submit loan applications
  • Axis Bank expects you to have a reasonable income level to take a loan against your car
  • Loans are granted against cars that are less than ten years old

To obtain a loan against your car, you must furnish various documents to the lender. Here is a list of the documents needed:

  • As proof of age, you can provide a voter ID card, Passport, or PAN card
  • A photo ration card with your date of birth, a PAN card, or a driving licence, to prove your identity
  • Form 16 or ITR and salary slips of the last 3 months along with the bank statement
  • You must also provide legal documents of the car against which you wish to avail of the loan. These documents include valid motor insurance policy documents and the registration certificate

Step-by-step guide to apply for a Loan Against Car online and offline

Here are the steps you can follow when applying for a Car Loan and submitting your Car Loan application:

Online Process:

  • Visit the official website of Axis Bank for Car Loans.
  • Fill out the application form online and upload the required documents on the lender's official portal
  • The bank will carefully review your application, and you will receive updates on your car loan application status via SMS or email
  • Offline Process:

  • Visit the closest Axis Bank branch office and complete the loan application form. Include the necessary photo ID and other required documents. Submit the completed form at the lender's office.
  • Once the registration is complete, the bank employees will keep you posted on the details of loan approval. 

Applicable fees and charges

Sr No. TypeCharges
1Processing Fee2% of the loan amount
2Cheque/ECS/NACH Bounce/Instrument Return ChargesRs 339 per instance
3Cheque/Instrument Swap ChargesRs 500 per instance
4Duplicate Statement Issuance Charges-Rs 250 per instance
5Duplicate No Dues Certificate/NOCRs 50 per instance
6Penal Interest2% per month
7Loan Cancellation/Re-bookingRs 550 per case
8Foreclosure/Part payment Closure5% of the Principal Outstanding
9Stamp DutyActual Cost
10Issuance of Credit ReportRs 50 per instance
11Documentation chargesRs 700
12Registration Certification Collection ChargeRs 250 per instance
13Valuation ChargesRs 590 (inclusive of GST)

*Goods and Services tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable)

FAQs on Loan Against Car

A Loan against Car, also known as a parallel loan, is a type of secured loan where you use your vehicle as collateral to borrow money from a lender. The lender holds the title of your car until you repay the loan in full.

Yes, you can take a loan against any ar. The loan amount you can obtain depends on the value of your car and the lender's policies. The car should not be more than 10 years old.

Taking a loan on an existing Car Loan can be challenging. Usually, the initial lender holds the car's title until the original loan is fully repaid. If you are an existing Car Loan customer, banks can offer an additional top-up loan on a case-by-case basis.  

Yes, when you take out a Loan Against Car, you can keep your car in your possession and continue using it. However, the lender will have a lien on the car's title, which means that banks have a legal claim to it until the loan is repaid in full. If you fail to repay the loan, the lender may repossess the car as per the agreement.

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