Car Loan Interest Rates: When it comes to purchasing a car, most people in India require financing. Car loans are a popular option, but the interest rates offered by various banks can vary significantly. It’s important to choose a loan with a low-interest rate to save money in the long run. In this article, we’ll compare the interest rates of the top banks in India that offer car loans.
Car Loan Interest Rates
Car loans are a type of secured loan that can be used to finance a new or used car purchase. The loan is secured by the car itself, and the interest rates are usually lower than unsecured loans. When considering a car loan, it’s important to compare the interest rates of various banks to get the best deal.
In this article, we’ll compare the interest rates and EMI (Equated Monthly Installment) of the top banks in India that offer car loans.
1. Axis Bank
Axis Bank offers car loans at an interest rate of 8.50% – 11.25%. The EMI per Rs. 1 lakh for a 7-year loan term ranges from Rs. 1,584 – Rs. 1,725.
2. Bank of Baroda
Bank of Baroda offers car loans at an interest rate of 7.35% – 9.10%. The EMI per Rs. 1 lakh for a 7-year loan term ranges from Rs. 1,526 – Rs. 1,614.
3. Bank of Maharashtra
Bank of Maharashtra offers car loans at an interest rate of 7.70% – 8.45%. The EMI per Rs. 1 lakh for a 7-year loan term ranges from Rs. 1,544 – Rs. 1,581.
4. Canara Bank
Canara Bank offers car loans at an interest rate of 7.30% – 9.90%. The EMI per Rs. 1 lakh for a 7-year loan term ranges from Rs. 1,524 – Rs. 1,655.
5. Central Bank of India
Central Bank of India offers car loans at an interest rate of 7.25% – 7.50%. The EMI per Rs. 1 lakh for a 7-year loan term ranges from Rs. 1,522 – Rs. 1,534.
6. Corporation Bank
Corporation Bank offers car loans at an interest rate of 7.40% – 7.50%. The EMI per Rs. 1 lakh for a 7-year loan term ranges from Rs. 1,529 – Rs. 1,534.
7. HDFC Bank
HDFC Bank offers car loans at an interest rate of 8.80% – 10.00%. The EMI per Rs. 1 lakh for a 7-year loan term ranges from Rs. 1,599 – Rs. 1,660.
8. ICICI Bank
ICICI Bank offers car loans at interest rates ranging from 8.82% to 12.75%. The EMI per Rs. 1 lakh for a 7-year loan tenure ranges from Rs. 1,600 to Rs. 1,806.
9. IDBI Bank
IDBI Bank is another popular bank in India that offers car loans with competitive interest rates. Here are some key details to know about IDBI Bank’s car loan interest rates:
Interest Rates
The interest rates for IDBI Bank car loans range from 8.40% to 9.00%. The actual interest rate you receive will depend on various factors such as your credit score, loan amount, loan tenure, and so on.
EMI per Rs. 1 lakh for 7 Years
Assuming a loan tenure of 7 years, the EMI per Rs. 1 lakh for IDBI Bank car loans ranges from Rs. 1,579 to Rs. 1,609. This means that if you take a car loan of Rs. 10 lakhs from IDBI Bank, your monthly EMI payments could range from Rs. 15,790 to Rs. 16,090, depending on the interest rate you receive.
10. Indian Bank
Indian Bank is a government-owned bank that provides car loans to eligible borrowers. If you’re considering an Indian Bank car loan, here’s what you need to know about the interest rates:
Interest Rates
Indian Bank car loan interest rates range from 8.20% to 8.55%. As with other banks, the actual interest rate you receive may be different based on various factors.
EMI per Rs. 1 lakh for 7 Years
For a car loan with a tenure of 7 years, the EMI per Rs. 1 lakh for Indian Bank ranges from Rs. 1,569 to Rs. 1,586. This means that for a car loan of Rs. 10 lakhs, your monthly EMI payments could range from Rs. 15,690 to Rs. 15,860, depending on the interest rate you receive.
11. Union Bank of India
Union Bank of India offers attractive car loan interest rates for eligible borrowers. Here are the details of Union Bank of India’s car loan interest rates:
Interest Rates
The interest rates for Union Bank of India car loans range from 7.40% to 7.50%. However, keep in mind that the actual interest rate you receive may be different based on factors such as your credit score, loan amount, and so on.
EMI per Rs. 1 lakh for 7 Years
Assuming a loan tenure of 7 years, the EMI per Rs. 1 lakh for Union Bank of India car loans is between Rs. 1,529 and Rs. 1,534. Therefore, if you take a car loan of Rs. 10 lakhs from Union Bank of India, your monthly EMI payments could range from Rs. 15,290 to Rs. 15,340, depending on the interest rate you receive.
12. Punjab National Bank
Punjab National Bank is another popular bank in India that provides car loans at competitive interest rates. Here are some important details about PNB’s car loan interest rates:
Interest Rates
The interest rates for Punjab National Bank car loans range from 9.40% to 9.90%. However, keep in mind that the actual interest rate you receive may vary depending on various factors.
13. State Bank of India
State Bank of India (SBI) is a government-owned bank in India with its headquarters in Mumbai. It is one of the largest banks in India and offers various banking products and services, including car loans. SBI offers car loans with interest rates ranging from 7.95% to 8.70% and an EMI per Rs. 1 lakh for 7 years ranging from Rs. 1,556 to Rs. 1,594.
14. UCO Bank
UCO Bank is a public sector bank in India with its headquarters in Kolkata. It offers various financial products and services to its customers, including car loans. UCO Bank offers car loans with interest rates ranging from 7.70% to 9.30% and an EMI per Rs. 1 lakh for 7 years ranging from Rs. 1,544 to Rs. 1,624.
15. Bank of India
Bank of India (BOI) is a public sector bank in India with its headquarters in Mumbai. It offers various financial products and services to its customers, including car loans. BOI offers car loans with interest rates ranging from 7.35% to 7.95% and an EMI per Rs. 1 lakh for 7 years ranging from Rs. 1,526 to Rs. 1,556.
Compare Best Car Loans Interest Rates
| Bank Name | Interest Rates | EMI per Rs. 1 lakh for 7 Years | Description |
|---|---|---|---|
| Axis Bank | 8.50% – 11.25% | Rs. 1,584 – Rs. 1,725 | Axis Bank provides car loans with flexible tenures of up to 8 years, high loan amounts, and competitive interest rates. |
| Bank of Baroda | 7.35% – 9.10% | Rs. 1,526 – Rs. 1,614 | Bank of Baroda offers car loans with attractive interest rates and up to 90% financing on the on-road price of the vehicle. |
| Bank of Maharashtra | 7.70% – 8.45% | Rs. 1,544 – Rs. 1,581 | Bank of Maharashtra provides car loans with low processing fees, flexible repayment options, and a maximum tenure of up to 7 years. |
| Canara Bank | 7.30% – 9.90% | Rs. 1,524 – Rs. 1,655 | Canara Bank offers car loans with competitive interest rates, up to 7 years tenure, and easy repayment options. |
| Central Bank of India | 7.25% – 7.50% | Rs. 1,522 – Rs. 1,534 | Central Bank of India provides car loans with a maximum tenure of 7 years and low processing fees. |
| Corporation Bank | 7.40% – 7.50% | Rs. 1,529 – Rs. 1,534 | Corporation Bank offers car loans with attractive interest rates and low processing fees. |
| HDFC Bank | 8.80% – 10.00% | Rs. 1,599 – Rs. 1,660 | HDFC Bank provides car loans with fast processing, competitive interest rates, and flexible repayment options. |
| ICICI Bank | 8.82% – 12.75% | Rs. 1,600 – Rs. 1,806 | ICICI Bank offers car loans with low processing fees, flexible repayment options, and up to 100% financing on select models. |
| IDBI Bank | 8.40% – 9.00% | Rs. 1,579 – Rs. 1,609 | IDBI Bank provides car loans with competitive interest rates, up to 7 years tenure, and a hassle-free application process. |
| Indian Bank | 8.20% – 8.55% | Rs. 1,569 – Rs. 1,586 | Indian Bank offers car loans with up to 90% financing on the on-road price of the vehicle and easy repayment options. |
| Union Bank of India | 7.40% – 7.50% | Rs. 1,529 – Rs. 1,534 | Union Bank of India provides car loans with low processing fees and a maximum tenure of up to 7 years. |
Factors that Affect Car Loan Interest Rates
Several factors can influence car loan interest rates, including:
- Your credit score: A higher credit score can help you secure a lower interest rate.
- Loan tenure: Longer tenures usually result in higher interest rates.
- Loan amount: Larger loan amounts can result in lower interest rates.
- Income: A higher income can improve your chances of getting a lower interest rate.
- Type of car: The age, model, and brand of the car can impact interest rates.
The Importance of Shopping Around for the Best Rates
When looking for a car loan, it’s essential to shop around and compare interest rates offered by different banks. This can help you get a better understanding of the loan options available to you and secure the best deal possible.
Conclusion
Car loans can be a great way to buy your dream car, but it’s important to choose the right bank and the right interest rate. In this article, we have discussed the car loan interest rates offered by some of the top banks in India. It’s important to keep in mind that these interest rates and EMIs are subject to change based on various factors, and it’s always best to check with the bank directly for the latest information.
FAQs
What is a car loan?
A car loan is a type of loan that is used to purchase a car. The borrower receives funds from the bank to buy the car and then repays the loan with interest over a fixed period of time.
What factors affect car loan interest rates?
Several factors can affect car loan interest rates, including the borrower’s credit score, income, employment status, loan amount, loan duration, and the type of car being purchased.
Can I negotiate car loan interest rates?
Yes, you can negotiate car loan interest rates with the bank. It’s always a good idea to shop around and compare rates from different banks before finalizing a loan.
Can I prepay my car loan?
Yes, most banks allow prepayment of car loans. However, there may be prepayment charges involved, so it’s best to check with the bank before making a prepayment.
What happens if I default on my car loan?
If you default on your car loan, the bank may seize your car and auction it to recover the outstanding loan amount. Additionally, your credit score will be negatively affected, making it harder to get loans in the future.
