Loan Against Car with a Low CIBIL Score in Delhi NCR: Eligibility, Documents and Costs

Updated: 6 November 2026

If you own a car and need money for a medical bill, a family function, a business gap or old debts, your car can work as security for a loan. For people with a low CIBIL score this matters, because a lender that has collateral can look beyond the score alone. This guide explains how a loan against car works, who can apply in Delhi NCR, which documents you need, what it really costs and the questions to ask before you sign.

Quick answer: A loan against car (also called a car title loan or collateral loan) gives you money against a car that is already registered in your name. Because the car secures the loan, a low CIBIL score is not always the end of the road: the lender also looks at the car, your documents and your ability to repay. Approval, amount, rate and tenure still depend on eligibility, verification and the lender's final decision, so compare the full cost before you accept.

What is a loan against car?

A loan against car is a secured loan. You pledge a car you own, the lender checks the car and your papers, and you receive a lump sum in your bank account. You repay in instalments. When the loan is fully repaid, the lender releases its claim on the car.

It is different from a car loan that you take to buy a new or used car. Here you already own the car and you are using its value to raise funds for another need.

Loan against car vs car loan vs personal loan

Why a low CIBIL score is not always a dead end

For an unsecured personal loan, the lender has only your credit history and income to go on, so a score below the usual cut-off often means a quick rejection. With a loan against car, the lender has security. That is why many lenders are willing to assess low CIBIL profiles and applicants with a past loan rejection for this product.

Assessed does not mean approved. Lenders still look at:

• The car: ownership, age, condition, valid papers and its current market value.
• Your income: whether the EMI fits comfortably in your monthly budget.
• Your recent repayment behaviour: fresh defaults weigh more than an old, settled problem.
• Your documents: KYC and bank details must be valid and match.

If you are unsure whether you qualify, the free eligibility checker gives you a first idea before you apply.

Loan against car with Indifunds: the basics

Indifunds helps applicants in Delhi NCR (Delhi, Noida, Gurugram, Ghaziabad and Faridabad) find loan options and works with lending partners. On our loan against car page the amount range is ₹1 lakh to ₹10 lakh*, for eligible applicants including those with a low CIBIL score or a past loan rejection.

• Simple online application that takes about 2 minutes.
• No upfront charges and no fee before approval.
• Money is paid directly to your bank account after approval.
• *Amount, interest rate and tenure depend on eligibility, verification and the lender's final decision. Applying does not guarantee approval.

Eligibility checklist

Before you apply, check that you can say yes to each point:

• The car is registered in your own name.
• You have a valid RC (registration certificate).
• The car has valid insurance.
• You have a valid bank account in your name.
• You have a valid Aadhaar card and PAN card.
• You live or work in Delhi NCR.
• You can visit in person, as the car owner, to sign the loan papers.
• You have a steady income, from a job or a business, to pay the EMI.

Documents required

The lender may ask for more papers after checking your profile. Keep clear copies ready to avoid delays.

How the process works, step by step

1. Apply online

Fill in the short form with your basic details, your city and the amount you need.

2. Share your details

Our team calls you to understand your employment, income and the car.

3. Verification

You submit the documents, and the car and papers are checked. The car owner signs the papers in person.

4. Review the offer

If approved, read the loan offer and its terms carefully: amount, rate, tenure, total repayment, charges and what happens to the car during the loan. Accept only when everything is clear.

5. Disbursal

The money is paid to your bank account. Keep the signed documents and the repayment schedule safely.

What does it cost? Work out the EMI first

Never decide by the loan amount alone. Look at the EMI and the total repayment. As an illustration only (not a loan offer and not our rate): a loan of ₹2,00,000 at a flat rate of 24% per year for 24 months means total interest of ₹96,000, total repayment of ₹2,96,000 and an EMI of about ₹12,333. The actual rate, fees and tenure are shared in your loan offer.

Try your own numbers in the EMI calculator. A useful rule: keep all your EMIs together within about 40 to 50% of your monthly income.

Risks and questions to ask before you sign

A secured loan is a serious commitment. If you stop paying, the lender can use the car to recover its money. Ask these questions before you accept any offer:

• Custody: Does the car stay with the lender until repayment, or do you keep using it? On some loans against car the car is kept in the lender's parking, so plan your travel before you sign.
• Total cost: What is the total amount you will repay, including all charges?
• Interest type: Is the rate flat or reducing balance, and is it quoted per month or per year?
• Late payment: What penalty applies if an EMI is late?
• Prepayment: Can you close the loan early, and is there a charge?
• Release: How and when is the car (or its papers) returned after the last EMI?

Red flags to avoid

• Anyone asking for a "processing fee" or "file charge" before approval. Indifunds never charges a fee before approval.
• Promises of guaranteed approval before your documents and the car are checked.
• No written terms, or pressure to sign blank or incomplete papers.
• Requests to transfer money to a personal account.

Alternatives if a loan against car is not right for you

• Salaried with an in-hand salary of ₹35,000 or more: an unsecured option may still be possible even with a weak score. See personal loan for CIBIL defaulters (salaried).
• Own a property and need a larger amount: read about loan against property for a low CIBIL score.
• Need only a small amount until salary day: a short payday or salary advance may cost less overall than pledging the car.

Tips to improve your chances

• Keep the RC, insurance, Aadhaar and PAN details consistent (same name and spelling).
• Renew the insurance before you apply if it is about to expire.
• Ask only for the amount you need; a smaller EMI is easier to approve and to repay.
• Clear or settle any very recent overdue amount if you can, and keep proof.
• Apply once through one channel instead of many lenders at the same time.

Check your options with Indifunds

If you own a car in Delhi NCR and need funds despite a low CIBIL score, start on our loan against car page. The application takes about 2 minutes, there is no fee before approval, and our team explains the offer before you decide. For help, call our support team on 8595702470.

Frequently asked questions

Can I get a loan against my car with a low CIBIL score?

It may be possible. Because the car secures the loan, lenders assess low CIBIL profiles too, but approval, amount and rate depend on the car, your income, your documents and the lender's final decision.

How much loan can I get against my car?

On Indifunds the range is ₹1 lakh to ₹10 lakh*, depending on the car's value, your eligibility and verification. *Subject to the lender's final decision.

Does the car have to be in my name?

Yes. The car must be registered in your name with a valid RC and valid insurance, and the owner must sign the loan papers in person.

Can I keep driving my car during the loan?

It depends on the loan. On some loans against car the car stays in the lender's parking until the loan is repaid. Ask about custody before you sign.

Is there any fee before approval?

No. Indifunds does not charge any fee before approval. Be careful of anyone who asks for money before your loan is approved.