Four ways to fund the front-end.
The down-payment number you need depends on rate, tenure, and lender. Here's how Carfin's partners stack up — and which one your file qualifies for.
15% down · 60 months
Best-rate option. 8.40% from HDFC.
- — Lowest interest
- — Conservative LTV
- — Quickest sanction
- — Higher first-month outlay
10% down · 84 months
Smaller monthly · 9.20%.
- — Cash conserving
- — Sub-₹20K EMI on most cars
- — More interest paid overall
5% + Government job · 60 months
Special PSU/Government employee bracket.
- — Effectively 5% upfront
- — Same low rate
- — Salary credit proof needed
- — PSU/Government only
100% LTV · used cars
Bajaj + Mahindra. Subject to vehicle valuation.
- — No down payment
- — Works on certified pre-owned
- — NBFC rate (9.5–12%)
- — Vehicle must clear valuation
Pay more down. Or less. Here's the trade.
The textbook answer is "more down, less interest". The real-world answer depends on what your money does when you don't put it down. If your cash earns 8% in a debt fund and your auto rate is 9.5%, the gap is small. If you'd put cash in a high-yield FD at 7.5% post-tax, the gap is bigger.
For most salaried buyers we see, the sweet spot is 15–20% down. It clears bank LTV thresholds without being so high you give up market-rate returns. Self-employed buyers benefit from a higher down payment — banks reward it with a sharper rate.
How much do I really need on day one?
- Down payment: 10–20% of ex-showroom
- Road tax + RTO: 8–14% of ex-showroom (state-dependent)
- Insurance: 3–4% of ex-showroom for zero-dep
- Loan processing: 0.4–1.5% of loan amount
- Accessories (optional): ₹15–40K typical
Carfin breaks each of these out in the quote so there are no "what's this line item" surprises at invoice time.