Loan terms.

1 · Carfin's role

Carfin Technologies Pvt. Ltd. ("Carfin", "we", "us") operates a digital marketplace that connects prospective vehicle buyers ("you", "the borrower") with lenders authorised by the Reserve Bank of India and/or registered as non-banking financial companies. Carfin is not a lender, does not underwrite credit on its own balance sheet, and does not hold customer funds.

Our service consists of (i) matching you to candidate lenders, (ii) facilitating submission of your application to those lenders, and (iii) coordinating documentation, disbursal and post-disbursal servicing. The eventual lending decision rests entirely with the lender.

2 · The lender relationship

Once you accept a lender's offer through Carfin, you enter into a direct loan agreement with that lender. The terms of that agreement — including interest rate, tenure, EMI, pre-payment fees, foreclosure conditions, late-payment penalties, and default consequences — are governed by the lender's loan documentation, signed by you, and override any indicative figures shown on Carfin's interface.

Carfin may be entitled to a referral or origination commission from the lender. This commission is paid by the lender and does not increase the rate of interest charged to you.

3 · Interest, fees & charges

All interest rates shown on Carfin are on a reducing-balance basis unless explicitly stated otherwise. The advertised rate is exclusive of:

• Goods and Services Tax (GST), where applicable to fees;
• Lender's processing fee — generally 0.40% to 1.50% of the sanctioned amount;
• Stamp duty and notarisation costs, where applicable;
• Optional insurance and add-on covers;
• Statutory road tax, registration and RTO charges.

Carfin will itemise every charge on the indicative quote before you accept the offer. Final invoice figures are issued by the lender and the dealership.

4 · Sanction & disbursal

Sanction is conditional on the lender's verification of (a) identity documents (PAN, Aadhaar), (b) income and employment, (c) residence, (d) the vehicle invoice from an authorised dealership, and (e) any lender-specific KYC. Disbursal happens directly to the dealership upon receipt of the executed loan agreement, post-dated cheques (where applicable) and ECS/NACH mandate.

5 · Pre-payment & foreclosure

Pre-payment and foreclosure terms vary by lender. As of the date of these terms:

• HDFC, ICICI, IDFC First, Kotak (after 12 months) — zero pre-payment / foreclosure fees on floating-rate loans;
• Most public-sector banks — zero fees on floating-rate loans;
• NBFCs (Bajaj, Mahindra, Cholamandalam, Shriram) — typically 2% to 4% of outstanding principal as foreclosure fee.

6 · Default & recovery

You agree to pay every EMI on or before its due date. A missed EMI may attract a late-payment penalty (typically 2% per month on the overdue amount) and adverse reporting to credit bureaus. Repeated defaults can trigger lender-side recovery proceedings under applicable law, including repossession of the hypothecated vehicle.

7 · Hypothecation & insurance

The vehicle remains hypothecated to the lender until the loan is fully repaid, recorded in the Certificate of Registration (RC). Comprehensive insurance covering the vehicle is mandatory throughout the loan tenure. The lender reserves the right to inspect the insurance policy and require continued coverage.

8 · Dispute resolution

Any dispute arising out of Carfin's services shall first be attempted to be resolved through Carfin's internal grievance redressal mechanism (see /grievances). Unresolved disputes shall be subject to the exclusive jurisdiction of courts in Mumbai. For disputes arising directly with the lender, the lender's dispute mechanism and applicable banking ombudsman framework will apply.

These terms supersede all prior versions. Carfin may update them with at least 14 days' notice. The current version is always available at /loan-terms.