• Jamshedpur Car Loan

    Take the guesswork out of Jamshedpur car loans by comparing more than 25 leading banks right here on BankBazaar. Get the latest interest rates, understand the eligibility criteria and how to increase your chances of getting approved, documentation required, and much more. Get instant quotes and even approvals online within just 30 minutes and shorten your loan approval process.

    Jamshedpur is one of the major cities in the state of Jharkhand. Being a major industrialised city in India, Jamshedpur has a lot of options for people looking for car loans. If you are a resident of the city, you may take a car loan from any of the top lenders in the market. You can use BankBazaar to compare the interest rates and fees of different lenders before choosing a loan product.

    Lowest Car Loan Interest Rates in Jamshedpur

    Some of the top lenders and their car loan interest rates, fees, etc., are given as follows:

    Bank Interest rates Minimum income Processing fee
    HDFC Bank 8.85% p.a. to 11.60% p.a. Rs.25,000 per month Up to Rs.4,720
    Federal Bank 9.75% p.a. Rs.20,000 per month Rs.1,500 to Rs.2,500
    Allahabad Bank 9% p.a. Rs.25,000 per month for salaried employees; Rs.15,000 per month for pensioners Nil
    ICICI Bank 8.95% p.a. to 13.40% p.a. As per the lender’s terms and conditions Up to Rs.5,000
    State Bank of India 9.30% p.a. Rs.2.5 lakh to Rs.4 lakh p.a. Nil
    Union Bank of India 8.70% p.a. As per the lender’s terms and conditions 0.50%
    Yes Bank 10.25% p.a. to 12.25% p.a. As per the lender’s terms and conditions Rs.5,000 to Rs.10,000
    Canara Bank 8.60% p.a. to 9.25% p.a. Rs.25,000 per month Rs.1,000 to Rs.5,000
    Axis Bank 8.60% p.a. to 11.50% p.a. Rs.1.8 lakh to Rs.2.4 lakh Up to Rs.5,500
    Indian Bank 9.95% p.a. Rs.40,000 per month 0.229% of the loan amount

    How to get a Car Loan in Jamshedpur with a Low Interest Rate?

    While there are multiple options for car loans in Jamshedpur, you need to focus on getting a loan with the lowest possible interest rate. The good news here is that car loans are already cheaper than personal loans as they are secured against the value of the car. However, there are still many ways in which you can bring down interest rates even further. Let’s check out the simple tips that can help you get the lowest possible interest rate on car loans.

    • Improve your credit score: This is the most important factor for getting competitive interest rates on any kind of loans. Lenders use credit scores to determine the risk profile of an individual. Before you apply for a car loan, you need to improve your credit score to at least 750. You can do this by following a strict financial discipline which includes making your payments on time.
    • Maintain a stable income:Lenders provide loans only to individuals who have a regular source of income. You can avail loans even if you are self-employed by showing a steady income source. Steady income indicates that you can repay the loan EMIs on time. The duration of your employment in a particular job will also influence the interest rates set by the lender.
    • Increase your down payment: There are lenders who offer you competitive interest rates if you increase your share of down payment on a car loan. You can check with the lender regarding this and make the most of a car loan. This also gives additional security to lenders as you stand to lose more in case of a default.
    • Compare the offers in the market: There are multiple lenders in India for car loans. The interest rates and other loan terms do no remain the same for these lenders. Hence, you need to compare the offers of various lenders before choosing the right one suitable for you. You can use BankBazaar website or mobile app to compare the rates of multiple lenders simultaneously.
    • Have a low debt-to-income ratio: Debt-to-income ratio refers to the percentage of income you spend on paying loan EMIs. Higher the ratio, higher the risk of default according to lenders. Hence, it is necessary to maintain a low ratio to get a good deal on your car loan interest rate. You can maintain a low ratio by clearing off your existing loans before applying for a car loan.
    • Negotiate with the lender: You may also negotiate with the lender to get a good deal on your car loan interest rate. You may use the factors listed above while negotiating with the lender for a deal. While negotiating the interest rate, it is also better to negotiate the charges associated with the loan.

    Who can Get a Car Loan in Jamshedpur?

    The general eligibility criteria outlined by most lenders in the market are given as follows:

    Criteria Salaried individuals Self-employed individuals
    Age 21 years 21 years
    Income Rs.15,000 to Rs.20,000 p.m. As required by the lenders
    Income stability At least one year in the current job At least one to three years of business vintage

    *The specific eligibility criteria may change from one lender to another.

    Documentation Required

    • Photo ID and age proof
    • Signed application form with photograph
    • Residence proof
    • Bank statement for at least 6 months
    • Documentation for salaried applicants:
    • Salary slips for at least 3 months
    • Form 16 or Income Tax Returns
    • Documentation for self-employed applicants:
    • Income Tax Returns for at least 3 years
    • Certified/Audited Balance Sheet and Profit
    • Loss of Account for 3 years

    Get a car Loan Instantly!

    Get your brand new set of wheels through a car loan that offers affordable interest rates, quick application, and pocket-friendly repayment structures.


    Things to note while applying for a car loan

    You need to consider the following things while you apply for a car loan in Jamshedpur:

    • When you compare loans, it is not a good idea to go for the loan with the lowest interest rate. Make sure that the loan product is suitable for your specific needs. Check the other features of the loan and read reviews about the lender before taking a final decision.
    • Before you sign up for a loan, make sure you read the terms and conditions of the loan completely. This will help you get an understanding of the additional charges and fees associated with the loan.
    • You need to search for multiple loans in the market. However, it is not a good idea to apply for multiple loans simultaneously. You need to pick the right product and apply for one. Applying for multiple loans can have an adverse effect on your credit score.
    • You need to have the right tools while applying for a car loan. BankBazaar website or mobile application can help you find the right products by providing you with an instant comparison of all lenders in the market.


    How much of a vehicle’s price is financed by lenders?

    Typically, most lenders in the market finance 80% to 90% of a car’s on-road price. There are also lenders who provide 100% financing of a car’s on-road price. The loan quantum offered by lenders is provided in the loan document. You need to read this carefully before you apply for a loan.

    Is it possible to prepay my car loan?

    Yes. Most lenders in the market allow their customers to prepay their loan. However, borrowers must pay a small penalty to compensate for the lender’s loss of income. This prepayment penalty is calculated based on the outstanding loan amount. You need to check the percentage for prepayment penalty while checking the loan documents.

    My car loan application got rejected. What could be the reason?

    The most common reason for car loan rejection is poor credit score. If your credit score is bad, lenders consider it a risk to provide you loans. Hence, it is better to improve your credit score before you apply for a new loan. Your loan application could also get rejected if you have multiple outstanding loans or your debt-to-income ratio is too high. Get your credit report through BankBazaar mobile app to get a better understanding of the reason for rejection.

    Can I apply with other banks if one lender rejects my loan application?

    No. This is not a good idea as it could worsen your credit score. First, you need to understand why your loan application got rejected. Only by knowing this you can fix the issues and become a creditworthy applicant. When you make multiple applications, it will make you seem like you are too desperate for loans. Hence, your credit score will go down even further.

    Can I take a second loan on the car before paying my existing loan?

    No. Till you pay your existing loan, the ownership of the vehicle will not be transferred to you. You cannot borrow a second loan on the hypothecated vehicle. Similarly, you cannot sell the vehicle before you pay off the loan. You need to get full ownership of the vehicle if you wish to sell or pawn the title of your car.

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