How to Finance A Car With No Money Down in 2024

A zero down payment vehicle loan is one in which the borrower is not required to make any kind of down payment. The bank or lending organization offers to finance the whole worth of the automobile in such loans, which is why they are frequently referred to as “100% Finance”… Let’s explore our options…

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The first payment paid toward the purchase of any costly item, in this example an automobile, is known as a down payment. It is usually set at a percentage of the automobile’s worth, with the remaining amount being paid off through a car loan. The vendor would normally want a down payment to verify your financial reliability and provide them with some security. Paying a significant down payment lowers the amount of financing you require and, as a result, lowers the interest rate and EMI (Equated Monthly Instalment) amount. A hefty down payment will improve your chances of getting a loan and will also help you to pay it off faster.

Things to take into account on a zero down payment car loan

  • The $0 down payment auto loans will not cover the vehicle’s accessories.

  • A solid credit history is required to get zero down payment vehicle loans.

  • Borrowers who take for zero down payment vehicle loans may have to pay processing fees to the lender.

  • To qualify for a $0 down payment vehicle loan, you must ensure that the loan amount does not exceed your net annual income.

Criteria for Car Loan Eligibility for 100% On-Road Financing

  • The candidate must be at least 25 years old.
  • He or she needs a credit score of 800 or above, as well as no bad loan payback history on their credit record.

  • A minimum yearly income is required of the candidate.

  • The amount of the automobile loan will not exceed the applicant’s net yearly income.

  • The total of the applicant’s existing loan EMIs plus the proposed loan EMI must be less than 50% of the applicant’s wage.

  • He or she must be a paid employee or a self-employed individual with at least three years of experience.

  • The applicant’s bank account must be at least three times the loan EMI.

  • In the applicant’s pay account or company current account, there is no history of check returns in the past six months.

  • The applicant must have lived at the specified residence for at least two years.

Documents Required for Obtaining a Car Loan with No Down Payment

Along with a fully completed and signed auto loan application form, an applicant must provide the following documents:


  • The firm ID, salary credit in bank statement, Form 16 (in the event of a salaried employee), and VAT or ST registration with current account statement may all be used as evidence of income (for a self-employed individual).

  • You may provide your property deed as evidence of residence.

  • You may submit your PAN card, passport, Aadhaar card, and current passport-sized pictures as confirmation of identification and age.

  • Previous loan or vehicle ownership documentation, such as the former car’s registration certificate and loan agreement.

  • A salaried employee’s income evidence may include the past two years’ Form 16, the last three months’ payslips, and the last six months’ salary account bank statement.

  • An ITR from the previous two years, a current account statement from the previous six months, a Sales Tax certificate, a Service Tax certificate, and a VAT certificate are all examples of income evidence for a self-employed person.

Below are 3 top banks that offer zero down payment finance.

HDFC Bank Car Loan

With its vehicle loans, HDFC Bank, a private sector lender, provides up to 100% finance. Existing HDFC Bank clients have a better probability of being approved for zero down payment vehicle loans. There will be minimum paperwork involved in the process, and the loan will be authorized and disbursed swiftly. Borrowers may be required to pay a processing charge that is a tiny percentage of the loan amount. The processing charge is determined by the amount of road tax, state registration, and insurance required.

CICI Bank Car Loan

Car loans from ICICI Bank are available with no down payment or 100 percent financing. The auto loan has a 7-year payback period, low interest rates, immediate approvals, and speedy processing. On the ICICI Bank auto loan, prepayment and foreclosure options are available.

Axis Bank Car Loan

Axis Bank offers 100% financing on the automobile’s ‘On-Road’ Price on its car loans. The loan amount varies, with interest rates beginning at 9.25 percent. On its auto loans, the bank also provides the longest payback terms, up to 8 years. Axis Bank’s vehicle loans allow for partial prepayment and foreclosure with associated fees.

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