Has anyone here taken a car loan with a bad credit score? Is it even possible in India? What kind of interest or conditions should I expect?
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Yes, it’s possible to get a car loan with a low credit score in India, but it comes with conditions such as-
- You will have to pay larger down payment (approx. 30-40%) and less amount of loan
- Consider to improve your CIBIL before applying by clearing your previous dues, maintaining low credit utilization etc.(Tips to improve your credit score-Ways to improve your credit score fast in India)
- Consider applying for the loan with a co-applicant or guarantor who has a better credit score.
- Got a car loan with bad credit and a high interest rate, pay EMIs on time and improve your credit score you could refinance to a lower rate in a year or two and save big over the loan’s term.
Yes, you can get a car loan in India with a low credit score, but it won’t be easy.
Lenders may charge a higher interest rate, ask for a bigger down payment, or require a co-applicant. Some NBFCs or used car dealers are more flexible but come with stricter terms. If it’s not urgent, improving your score first can help you get better loan offers.
Hi anushka, yeah, it’s totally possible, but not super easy. Lenders in India will usually still give you a car loan with a low credit score, but expect higher interest rates, bigger down payments, and sometimes extra paperwork (like a guarantor). If you can, try negotiating with your bank or going through an NBFC—they tend to be a bit more flexible.