What is a loan against car and how does it work?

If you own a car and need money immediately without dipping into your savings, a loan against car can be a smart, collateral-backed solution. Unlike selling your automobile or borrowing an expensive personal loan, this option allows you to tap its value while you continue using it – all while getting the liquidity needed!

IDFC FIRST Bank has India's most competitive loan against used vehicle schemes, with an emphasis on quick disbursals, high-end lending, and convenience. 

What is a loan against car?
 

A loan against car is a secured borrowing solution where the bank lends you money by pledging your present vehicle. It suits salaried or self-employed individuals who wish to generate funds without surrendering their vehicle.

With IDFC FIRST Bank, this product comes as a refinance option where you have full ownership and possession of the vehicle and receive the approved loan amount as per the market value of the vehicle.

Key highlights of IDFC FIRST Bank's loans against cars (Refinance)
 

IDFC FIRST Bank offers the following features with its loan against car facility.

• You can avail 200% of the market value of your vehicle to meet needs beyond essentials.
• The loan amounts can range from ₹1 lakh to ₹2 crores, depending on the condition of the vehicle, valuation, and your credit history.
• Interest rates start as low as 13.99% p.a., so that the cost of borrowing doesn't pinch.
• You get flexible repayment tenure options of up to 84 months, with complete freedom over your EMI outgo.
• Approved customers enjoy instant sanctions and outright waivers of physical valuation and document verification, making it digital and convenient.

Who is eligible?
 

IDFC FIRST Bank offers this loan to salaried and self-employed segments as well:

Salaried individuals should be between 21–65 years of age (at loan maturity) with a minimum annual income of ₹2.4 lakh and minimum work experience of one-year.

Self-employed individuals should be between 21–65 years of age (at loan maturity) with a minimum business continuity of two years and minimum annual income of ₹1.5 lakh.

How does it work?
 

You have to follow the simple steps as given below to get a loan against car from IDFC FIRST Bank -

1. Apply online through IDFC FIRST Bank's website or mobile banking app.
2. Provide personal, income, and vehicle information.
3. Choose your loan amount and tenure.
4. Get instant sanction (maximum ₹15 lakhs within 15 minutes in eligible cases).
5. Loan is disbursed within 1–2 working days upon document verification.

Note: You do not need to surrender your car—you can use it throughout the tenure.

Conclusion
 

A loan against used car from IDFC FIRST Bank isn't just an emergency solution—it's a smart way to put your parked asset to work. With high-value funding, low paperwork, and a same-day disbursal, this refinance loan gives you the liquidity you need without selling your car or compromising on ownership.