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Volkswagen Car Finance

About Volkswagen Finance

Volkswagen is a German automobile company which has been in operation since 1937. They are known to make the best cars with the latest engineering designs and technology. They are leaders of the market, as their worldwide sales in 2016 was the largest among all automakers. Volkswagen in German means ‘people’s car’, this is essentially the positioning that they intend to achieve in the market place as well.

Volkswagen finance was established to enable the company to expand its outreach. Car is no longer a luxury item, it has become a necessity to transit comfortably with one’s family. For a country like India, where the place of work is typically far from the place of stay, cars come in handy. While public transport still caters to the lower strata of the society, cars are a preferred mode of commute especially with the increase in disposable income and the desire to up the standard of living.

Volkswagen finance (India) is established as a jointly owned subsidiary of Volkswagen financial services AG (Germany) and Volkswagen financial services BV (Netherlands). These two entities are wholly owned by Volkswagen AG (Germany). The automobile company saw the growing potential of Indian car market and established the finance arm in the year 2009. The company caters exclusively to all the cars marketed and distributed in India. The categories of cars marketed and distributed in India are Premium Sedan, Sedan, SUV and Hatchback. The various car models available in India are – Passat, Tiguan, Vento, Ameo, Polo and Polo GT. Volkswagen automobile has made head way in the Indian automobile market with the launch of Volkswagen finance.

Features and benefits of availing car loan from Volkswagen Car Finance

There are some key features and advantages of availing a car loan from Volkswagen Car Finance. A potential borrower should be aware of these features before availing the loan facility. This will enable the customers to assess and weigh the options correctly before zeroing-in on the preferred NBFC (non-banking financial corporation) to fund the preferred Volkswagen car.

  • Insurance – The insurance provided by Volkswagen is a co-branded comprehensive insurance policy for a period of 1 year. This insurance would cover all safety accessories, other gadgets / other accessories as required.
  • Add-on financial solutions – There is a value-add insurance product called ‘Drive Assure’ which is available in two variants – Drive assure economy and Drive assure elite. Both the products propose to reduce financial burden, the key features of the product variants are mentioned below –

Drive assure economy –

  • No depreciation on parts will be charged in case of accident
  • Engine protector will cover damage to engine which may occur from accidental leakage of oil

Drive assure elite –

In addition to the coverage offered under economy, the below two additional features are offered –

  • Vehicle replacement advantage
  • Accidental shield
  • In addition to the above two key features, there are other advantages that are offered to customers who intend to borrow from Volkswagen Car Finance. Some of the benefits will give a clear perspective on how it is beneficial to borrow from Volkswagen finance and not from any other financier (for purchase of Volkswagen cars).

    Customer care access for 24 / 7 – Volkswagen finance has a very dedicated customer support team which can be accessed over phone at any point. The staff is trained and mandated to serve the client and provide all necessary clarifications. They have a tight turnaround for any unanswered queries, typically they respond within a 24-hour turnaround.

    Prompt attention to repairs and no hidden implications on warranty – While Volkswagen promises to replace any parts defective or damaged with original parts by trained technicians, it also promises not to invalidate warranty incase of repairs dealt at dealer’s end. Also, if one were to avail one of the drive assure plans, there will be no depreciation charged on any repairs incase of accidents / damage.

    Easy and quick claims settlement – They have a very transparent and operationally efficient claims settlement procedure. Their claims settlement is also cashless which is available across the country. This makes up for easy, convenient claims management.

    Given the above features, it makes ample sense to opt for Volkswagen finance whilst buying a Volkswagen car. However, there are some basic eligibility criteria to apply for car loan from Volkswagen.

    Eligibility criteria to be able to avail car loan from Volkswagen Car Finance

    The applicant for car loan can either be a Salaried individual or Self-employed / business (company), there are slightly different criteria for both these categories. Depending on the value of the car, the minimum income levels are different. Also, the stability of income has to be established for a longer tenure incase one intends to buy a car with a higher value.

    Eligibility criteria for salaried individuals –

    ParticularsCar valueCar value Car value 
    (up to 10 lacs)(10 lacs -20 lacs)(20 lacs and above)
    Age CriteriaMinimum age 21 years oldMinimum age 21 years oldMinimum age 21 years old
    Minimum Gross Income per annumRs. 2 LakhsRs. 5 LakhsRs. 10 Lakhs
    Work experienceMinimum 3 yearsMinimum 3 yearsMinimum 5 years
    Quantum of loan to car valueUpto 90% of car valueUpto 90% of car valueUpto 90% of car value

    Eligibility criteria for self-employed individuals /business –

    ParticularsCar valueCar value Car value 
    (up to 10 lacs)(10 lacs -20 lacs)(20 lacs and above)
    Age CriteriaMinimum age 21 years oldMinimum age 21 years oldMinimum age 21 years old
    Minimum Gross Income per annumRs. 1 LakhsRs. 3.5 LakhsRs. 5 Lakhs
    Work experienceMinimum 2 yearsMinimum 5 yearsMinimum 7 years
    Quantum of loan to car valueUpto 85% of car valueUpto 85% of car valueUpto 85% of car value

    Based on the above criteria, one can go ahead with the loan application and document submission. It is better to establish eligibility for a car loan before going over the loan application and documentation process, since this will eliminate the possibility of loan rejection. Loan rejection tend to affect the credit score of an individual which is critical for all loan proposals in the future. Credit score becomes a key determinant for interest rates and loan sanctions.

    Documents required for availing car loan from Volkswagen Car Finance

    The documentation process in car loans availed from Volkswagen Car Finance involves establishing the authenticity of the person applying for the loan, identifying and evidencing a steady / stable stream of income. This will ensure that the potential borrower can pay off the EMI conveniently over the loan tenure agreed upon.

    The documentation would differ based on the type of applicant.

    Documents for salaried individual –

    Type of proofSalaried
    Identity ProofPassport, PAN Card,  Driving License, Employee ID issued by Govt. of India, Voter's ID, Letter from Unique Identification Authority of India with details of name, Address & Aadhar number
    Address ProofPassport,  Lease Agreement, Telephone bill, Utility Bill, Bank Statement
    Other documentsLatest 3-month Salary Slip. Form 16 / IT return

    Documents for self-employed individual –

    Type of proofSelf Employed
    Identity ProofPassport,  PAN Card,  Driving License, ST registration
    Address ProofPassport,  Lease Agreement, Telephone bill, Utility Bill, Bank Statement
    Other documentsIncome Tax returns for last 2 yrs – along with Balance sheet and P & L A/C, computation of income. If the ITR is audited than audited report along with the annexures are required

    Documents for partnership firm –

    Type of proofPartnership Firm
    Identity ProofPartnership Deed,  Latest Sales Tax Assessment Order, ST registration Certificate, Identity proof of signing partners
    Address ProofElectricity / Water / Telephone bill. Address proof for signing partners
    Other documentsa) Income proof - Audited Balance Sheet, P&L,  computation of income. If the ITR is audited than audited report along with the annexures are required

    Documents for business (Private company and Public company) –

    Type of proofLimited Company
    Identity ProofMOA and AOA, ST Registration Certificate, Identity proof of signing directors
    Address ProofDocument collected as Identity proof should have current address of firm. Address proof of directors
    Other documentsIncome proof - Audited Balance Sheet, P&L, computation of income. If the ITR is audited than audited report along with the annexures are required

    The loan application can be downloaded from the website and filled completely. Alongside the above documents, there is a need to attach bank statement of 6 months (irrespective of category of applicant and type of income). All the documents have to be self-attested. These documents along with loan application can be submitted at the nearest Volkswagen finance unit or dealer. The loan processing team will take 48 hours to respond, on clearance of the loan application, the sanction is likely to happen within 24 – 48 hours. The customer can take delivery of the car, by submitting a copy of the invoice, insurance policy and vehicle registration certificate to the financier.

    Charges and fees applicable on loan

    Apart from the interest charged on the loan, there are other charges / fees applicable on the loan sanctioned by Volkswagen. The gist of the loan charges is mentioned below –

    Type of chargeCharges (INR)
    Loan processing chargea) If loan amount <=5 Lakhs - Rs 3379
    b) If loan amount > 5 Lakhs & <=10 Lakhs- Rs 3887
    c) If loan amount > 10 Lakhs - Rs 4565
    d) Documentation Charges -     Rs 350
    e) Goods & Service Tax - 18%
    Change in tenureRs. 5000
    Change in contractRs. 2500
    Loan cancellationRs. 5000
    Change or addition of guarantorRs. 5000
    NOC private to commercial useRs. 5000
    Documentation chargesRs. 350
    Full repayment chargesa) If within 24 months - 3% on outstanding principal amount
    b) If after 24 months - 1.5% on outstanding principal amount
    Part paymentAllowed only twice in entire loan tenure, prepayment amount should not be less than the amount equivalent to 3 EMIs. For processing such part prepayment request 2%-part prepayment charges shall be levied on said part payment amount.

    The above charges will be applied irrespective of type of applicant or quantum of loan.


    • Volkswagen automobile is a trusted worldwide brand which has a fleet of high-end cars marketed and distributed in India
    • Volkswagen finance has helped the automaker expand the outreach in Urban India
    • Volkswagen finance provides exclusive offers and deals to all Volkswagen cars marketed and distributed in India
    • The loan processing and documentation process is operationally efficient
    • Claims management is easy, convenient and cashless in the case of Volkswagen

    Frequently asked questions

    1. Where can I get the Volkswagen loan application?

    You can download it from the website or collect a physical copy from Volkswagen dealer.

    2. Can I view my loan statement online?

    Yes. You can request the customer care team to provide the latest loan statement.

    3. What is the minimum and maximum loan tenure offered by Volkswagen Car Finance?

    The minimum tenure is 12 months and maximum loan tenure is upto 60 months.

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