How To Get A Car Loan Without A Guarantor In 2025 : People face difficulties when trying to secure car loans without requiring an added guarantor during the large financial transaction of purchasing a vehicle. The majority of banks together with financial institutions provide car loans without requiring a guarantor if particular conditions are met. This guide will provide information about obtaining car loans without guarantors in the year 2025 while exploring the leading financial institutions as well as qualification standards and proven methods to enhance approval possibilities.
Can You Get a Car Loan Without a Guarantor?
Yes! The majority of banks alongside NBFCs (Non-Banking Financial Companies) enable individuals to obtain car loans independently whether their earnings stay consistent and their credit profile maintains good health as well as fulfilling loan requirements.
A guarantor is usually required when:
✔️ The applicant has a low credit score
✔️ The applicant has unstable income or is self-employed with irregular earnings
✔️ The loan amount is too high
✔️ The applicant does not meet the bank’s minimum eligibility criteria
However, if you meet the following requirements, you can easily qualify for a car loan without needing a guarantor.
Top 5 Ways to Get a Car Loan Without a Guarantor in 2025
Read More: How to Improve Your Credit Score Before Applying for a Loan
1. Maintain a High Credit Score (700+ Preferred)
Lenders consider a credit score at 700 or above as a signal you will handle loans properly. If your credit score is low: ✔ Check your credit report for errors and fix them
✔ Clear outstanding debts to improve your credit history
✔ Pay credit card bills and existing EMIs on time
💡 Pro Tip: If your credit score is 750+, banks may offer you lower interest rates and faster approvals.
2. Apply with a Reputable Bank or NBFC
Some banks and NBFCs offer car loans without a guarantor, even if your credit score is average. Here are the best options in 2025:
| Bank/NBFC | Interest Rate (Approx.) | Loan Tenure | Features |
|---|---|---|---|
| HDFC Bank | 7.50% – 9.00% | Up to 7 years | No guarantor required for salaried applicants with good credit history |
| ICICI Bank | 8.00% – 10.50% | Up to 7 years | Quick approval, 100% financing available |
| SBI Car Loan | 7.25% – 9.50% | Up to 7 years | Lower interest rates for government employees |
| Axis Bank | 7.75% – 9.25% | Up to 7 years | Minimal paperwork, pre-approved offers available |
| Bajaj Finserv | 8.50% – 12.00% | Up to 5 years | Higher flexibility for self-employed individuals |
💡 Tip: If you already have a savings account with a bank, they might approve your loan faster without a guarantor.
3. Have a Stable Income and Job
Lenders prefer applicants with:
✔ A steady job (preferably with a minimum of 2 years of employment)
✔ A minimum monthly income of ₹25,000 ($300 – $500 internationally)
✔ A government or reputed private-sector job
If you’re self-employed, show a consistent business income for at least 3 years with bank statements and IT returns.
💡 Pro Tip: If you receive your salary in a bank that you’re applying for a loan with, they may approve the loan faster.
4. Make a Higher Down Payment
Most car loans finance up to 80-90% of the car’s price, meaning you must pay 10-20% as a down payment.
📌 If you make a higher down payment (30% or more), banks will see you as a low-risk borrower, increasing your chances of approval without a guarantor.
💡 Example:
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Car price = ₹10 lakh ($12,000)
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Loan amount (90% financing) = ₹9 lakh ($10,800)
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If you pay ₹3 lakh ($3,600) upfront, banks may waive the need for a guarantor.
5. Apply for a Pre-Approved Car Loan
If you have an account with a bank, they may offer a pre-approved car loan without a guarantor. These loans are based on:
✔ Your banking history
✔ Your credit score
✔ Your salary deposits
📌 Check your bank’s net banking portal or contact customer service to see if you qualify for a pre-approved car loan.
Eligibility Criteria for a Car Loan Without a Guarantor
Here are the general requirements to apply for a car loan without a guarantor:
| Criteria | Salaried Applicants | Self-Employed Applicants |
|---|---|---|
| Minimum Age | 21 years | 21 years |
| Maximum Age | 60 years | 65 years |
| Minimum Income | ₹25,000/month | ₹3 lakh/year |
| Employment | 2 years job stability | 3 years business stability |
| Credit Score | 700+ preferred | 700+ preferred |
Documents Required for a Car Loan Without a Guarantor
📜 Here are the basic documents you need to apply:
🏦 For Salaried Individuals
✔ ID Proof – Aadhaar Card, Passport, PAN Card
✔ Address Proof – Utility Bill, Rental Agreement
✔ Income Proof – Salary slips (last 3 months)
✔ Bank Statement – Last 6 months
✔ Car Quotation – From the dealership
🏢 For Self-Employed Individuals
✔ Business Registration Certificate
✔ Income Tax Returns (Last 2 years)
✔ Bank Statement (Last 12 months)
✔ Proof of Business Operations
How to Apply for a Car Loan Without a Guarantor
Follow these steps to apply:
🔹 Online Process
1️⃣ Visit the lender’s official website
2️⃣ Fill out the online application form
3️⃣ Upload the required documents
4️⃣ Wait for verification and approval
5️⃣ Loan amount is disbursed once approved
🔹 Offline Process
1️⃣ Visit the nearest bank/NBFC branch
2️⃣ Submit the application form and documents
3️⃣ Undergo verification and background check
4️⃣ Loan is sanctioned and car is delivered
Final Thoughts
✔ You CAN get a car loan without a guarantor in 2025 if you have:
🔹 A good credit score (700+)
🔹 A stable income (₹25,000/month or more)
🔹 A low-risk financial profile
🔹 A higher down payment (30% or more)
💡 Pro Tip: Always compare different lenders before choosing a car loan to get the lowest interest rates and best terms.
🚗 Ready to buy your dream car? Apply today and drive home hassle-free! 😊
💬 Got questions? Drop them in the comments below! 🚘
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.