In most cases, banks provide only 80% to 90% of the total cost of the vehicle in the form of a car loan. However there are a few banks that may cover the entire cost of the car. Make sure go compare the available offers carefully before selecting your loan option.

Banks offer an option of prepaying the entire car loan amount and save on vital interest payments in the future. However, most banks allow pre-payment only after the completion 6 months of the loan tenure. Also, a small fee in the form of pre-payment penalty will be chargeable by the bank.

In most cases, you are able to negotiate the loan interest rate amount based on your credit score, credit history and previous relationship with the lender.

Commonly, all banks offer repayment tenures ranging from 12 months or a year to 84 months or 7 years depending upon the loan amount and customer’s repayment capabilities.

No, generally a guarantor is required only if you are unable to meet one or more of the eligibility criteria specified by the lender.

Most banks do not ask for a guarantor in case of both new and used car loans but if your income doesn’t meet the set eligibility criteria, the bank may require you to involve your parent or spouse as a co-applicant.