New Delhi: Paisabazaar has partnered with HDFC Bank, Tata Capital, and other lenders to launch a Loan Against Car product, marking its expansion into a new segment within secured lending. The offering allows consumers to borrow against their existing vehicles without having to sell them.
According to Paisabazaar, the new loan product provides up to 200 per cent of the car’s current market value, with flexible repayment tenures of up to five years. The entire loan application and disbursal process is fully digital, aimed at reducing processing time and increasing accessibility for borrowers.
The platform claims the product is targeted at individuals who may not have easy access to unsecured credit options and are looking for lower interest rates by leveraging owned assets. The launch is in line with Paisabazaar’s broader strategy to deepen its footprint in the secured loan space, which already includes home loans and loans against property.
The company’s CEO, Santosh Agarwal, noted that adding products like Loan Against Car is part of their ongoing effort to build a wider credit ecosystem with partner institutions.
While unsecured loans continue to dominate consumer borrowing in India, the secured lending segment is seeing growing interest, particularly among self-employed individuals and those outside the formal credit system. By integrating with established financial players such as HDFC Bank and Tata Capital, Paisabazaar is looking to bridge this gap.
A loan against a car is a relatively underutilised secured lending product in India. Unlike traditional car loans meant for new purchases, this product enables vehicle owners to unlock liquidity by pledging their existing cars. The ownership remains with the borrower, but the lender places a lien on the vehicle until the loan is repaid. The process typically offers lower interest rates compared to unsecured personal loans and is suited for short-to-medium term liquidity needs.
Discussion about this post