Car loan interest rate of all banks in India are mentioned here in this article. So, you can get a car loan in India at lowest interest rate. Many people often looks for the minimum car loan interest rate in India. So, they can either get a new or used car loan in India.
A car in today’s fast going life may be a choice for some and a necessity for others. Basically, it gets very hard to cope with this speedy life when you don’t have one. But the problem is many of us can’t afford to buy it exclusively from our salary. Looks like the distance between you and your car of dreams which will ease your and your loved one’s life seems increasing? Today, when everything is getting more and more expensive, buying your dream car, may look like a big challenge. But don’t worry you don’t have to compromise on your dream ride. Here, the best option to fulfil your dream or need of buying a car is taking a car loan.
Top 10 banks offering lowest car loan interest rate in India
With so many finance companies and banks around, it gets difficult to decide what source should one choose for the loan. So in this article, we bring you India’s top 10 Banks offering the lowest car loan interest rates that will be easy on your pockets.
1. State Bank of India
The state bank of India offers the lowest car loans interest rates in India. Anyone who is a government employee or works for a private company can avail the loan. You can apply for a loan under the SBI Car Loan Lite scheme, without submitting any proof of income if you fall under the self-employed individuals, agriculturists, professionals, and businessmen category. Interest is calculated on daily reducing balance. The financing is calculated based on the on-road price of the car and the maximum loan amount depends on the category you fall under.
The SBI offers car loans at 8.70% floating interest rate for up to 7 years, which is the lowest rate amongst all. The loan amount available is up to 90% of the on-road price of the car. The additional benefits of SBI bank car loan is that there are no processing charges with no prepayment penalty or foreclosure charges.
2. Punjab National Bank
The Punjab National Bank or PNB has partnered with prominent car manufacturers such as Tata Motors, Honda Cars India, Maruti Suzuki India, Mahindra & Mahindra, and Force Motors Ltd. to propose best deals on car loans. The bank offers both fixed and floating interest rates on car loan. A third -party guarantee is mandatory for availing a Punjab National Bank car loan but based on an individual’s merit, this requirement can be waived off. For the privilege of government employees, Punjab National Bank offers car loan under the name ‘PNB Pride Car Loan’.
PNB offers car loan at 8.75% interest rate for up to 7 years. The loan amount available is 85% of the on-road price of the car. The prepayment charges for floating interest rate is NIL whereas for fixed interest rate it is 2% of the outstanding prepaid amount.
3. HDFC Bank
HDFC Bank provides car loans that are custom-fit to meet the needs of the borrowers. The bank offers flexible repayment options such as step-up EMI and balloon EMI. HDFC bank offers ‘Suraksha Kawach’ an extensive insurance cover with the car loans. No documentation is needed for existing car loan borrowers to avail top-up loans. The interest rate offered is 9.25 % for up to 7 years.
The loan amount available is 90 % of the ex-showroom price of the car. The processing fees for HDFC car loan is 0.40% of the loan amount. The prepayment charges are 3% to 6% depending on loan term. There can be no foreclosure for loans disbursed less than 6 months ago.
4. ICICI Bank
The ICICI Bank offers car loans for new as well as used cars. The interest rate on ICICI New Car Loan starts from 8.89% whereas the interest rate on ICICI Bank Used Car Loan starts from 10.50 %. Both are Fixed rate loans. ICICI car loans are one of the best car loan rates in India. Rate of interest varies by borrower’s occupation, loan amount and loan tenure. ICICI offers car loan on new cars through easy documentation for customer’s convenience.
The loan amount available is up to 100% of the ex-showroom price on new cars and up to 80% of the market value on used cars. The bank imposes 5% prepayment charges on both categories of loans. You can get the benefit of additional top-up car loan, subject to your eligibility. The customer does not need a guarantor to avail car loan from ICICI Bank. The ICICI Bank charges rupees 3500 to rupees 8500 depending on the car segment.
5. Bank of Baroda
Bank of Baroda offers the advantage of lower interest rates to individuals with a high credit score. The interest rates on Bank of Baroda car loan are calculated on daily reducing balance. The other benefit is that Bank of Baroda does not charge any penalty on pre-closure of car loans. The minimum credit score needed to avail a car loan is 725.
The interest rate on BOB Car loan for up to 7 years is 8.90 %. The loan amount available is up to 85 % of the on-road price of the car. Bank of Baroda charges 0.50% of the loan amount as it’s processing fees.
Click Here: Best sites to buy and sell used cars in India
6. Central Bank of India
The central bank if India offers car loans for both salaried and self-employed individuals. An advantage of special rates is given to existing account holders. Central Bank of India grants car loans to the age group between 18 to 65 years. The loan amount available is up to 90% of the on-road price of the car for up to 7 years. The interest rate is 9 %.
The Central bank of India also provides car loans for used cars and the interest rate for the same is 9.80% for up to 5 years. The processing fee for borrowing a car loan from Central Bank of India is 0.50 % of the car cost.
7. Axis Bank
The Axis bank if India gives it’s priority banking customers special benefits on car loans. The minimum amount a borrower can get as a car loan is Rs.1 lakh. Axis bank gives its customers who borrow car loan Axis eDGE reward points on the loan. The interest rate is 9.25 % up to 8 years. Axis bank gives amount up to 100% of the on-road price of the car.
The Axis bank car loan can be repaid in 3 ways : electronic clearing service (ECS), standing instruction (SI), and post-dated cheques. Axis Bank charges minimum rupees 3500 and maximum rupees 5500 as the processing fees.
8. Union Bank of India
The Union Bank of India gives advantage to the applicants with good credit scores. They can get discounts on processing fees. If the applicant is married then they will have to be guaranteed by the spouse while unmarried applicants will have to furnish a third-party guarantor. The car loan borrower should meet the margin requirements of 15% of the vehicle’s on-road price.
Existing account holders of the banks will enjoy additional privileges from Union Bank of India. The floating interest rate is 9.20 % for up to 7 years. The loan amount available is up to 85 % of the on-road price of the car. Union Bank if India does not charge any processing fees. The bank does not levy any charge on prepayment of a the loan.
9. Canara Bank
The Canara Bank offers car loan in the name of Canara Vehicle. There is no limit on the loan amount offered by Canara Bank. The loan amount includes registration charges, invoice value, insurance premium and life tax. All individuals, professionals, firms can borrow a car loan from Canara Bank except Hindu Undivided Families (HUFs).
The interest rate is 8.90 % for up to 7 years. The amount of loan available is up to 90% of the total value of the car. The bank does not levy any charge for the prepayment o the loan. However, Canara Bank charges 0.25% of the loan amount as the processing fees.
10. IDBI Bank
The IDBI Bank gives car loan to buy cars in any segment from hatchbacks, sedans, to SUVs. The IDBI bank also has tie-ups with car dealers to give the best deals to its borrowers. The customers can pay the EMI’s through standing instructions or ECS. The IDBI bank might give it’s borrower higher loan sanction for purchasing their dream car. The bank charges 1 % of the balance outstanding after 6 months of loan disbursement on foreclosure. The interest rate is 9.30 % for up to 7 years. The loan amount available is 90 % of the ex-showroom price of the car. IDBI bank charges rupees 1000 as their processing fees.
NOTE: Through the above list we have tried to give an idea on the interest rates along with other charges and benifits offered by various banks. After reading this you will become more informed about the factors to be kept in mind while choosing a bank for car loans. So relax and take a step towards buying your dream car.