With increase in number of vehicle users day by day, traffic and parking of vehicles have become major problems. In this paper, we have designed an automatic vehicular parking system using loop detector which detects the presence of vehicle and displays the corresponding parking slots available in the parking area so that manual risk is reduced. In the past many parking systems were developed using magneto-resistive sensors, IR sensors and image processors. Here we are using low cost loop detector that is also insensitive to any climatic conditions, easy to maintain, long lasting and whose detection range is maximum. Loop detector works on the principle of change in its inductance (due to change in flux density) when a metal surface comes closer to it. A better approach was followed in developing the algorithm for parking.