Thinking of a car loan? Top 10 public and private banks offering the lowest rates
Many people in our country are rethinking their preferred mode of transportation amid the dominant second wave of the Covid-19 pandemic. Many who previously relied on public or shared transport are now seriously considering buying a car to minimize the possibility of getting infected with the deadly virus when they get out.
And since cars are expensive purchases, many of them are also eager to take out a car loan to meet their aspirations, especially since these financing facilities are usually available at lower interest rates than a product. unsecured loan like a personal loan.
So, if you are also planning to buy a new car in the near future, be aware that lenders typically finance up to 80-90% of the road price of the car. However, some banks also offer loan products that 100% finance the car appraisal cost subject to terms and conditions. In addition, auto loans are generally available for terms of up to 7 years. But although it is a secured loan product, the interest rates applicable to auto loans are determined by the lender based on the borrower’s credit rating, among other factors, according to BankBazaar.
There are also processing fees which are usually charged according to the policies of the lender. That being said, a few banks offer auto loans at preferential rates to their existing mortgage borrowers.
Many banks also offer pre-approved auto loans to their selected clients, which could involve concessional interest rates and rapid loan disbursement. As such, it makes a lot of sense to compare the current car loan offers from different lenders to find one that best meets your financing needs, according to BankBazaar.
To help you make informed decisions, we’ve compiled a list of 10 government and private banks that currently offer some of the lowest auto loan interest rates in the country.
We have also provided indicative IMEs for a loan of Rs 10 lakh for a term of 7 years for each of the banks mentioned in the table below. Note that we have only considered the lowest advertised interest rate for each lender, and the interest rate applicable to you may be higher depending on your loan amount, credit score, type of occupation or any other condition of the chosen lender.
Top 10 Government and Private Banks Currently Offering Lowest Interest Rates on New Car Loans
Disclaimer: Data collected from the respective websites of the banks on May 25, 2021. The lowest interest rates offered by the banks have been taken into account in the table. The indicative IMEs were calculated based on the interest rate mentioned in the table for Rs 10 lakh loans with a term of 7 years (processing fees and other charges are assumed to be zero for the calculation of the EMI) . The interest rates mentioned in the table are indicative and may vary depending on the bank’s T&C.
* Lowest rate of PSB Apna Vahan Sugam (new four wheeler). ** Price applicable for PNB Rakshak Plus (new car). ^ Minimum rate for the KVB Flexi Mobile auto loan. ^^ Lowest rack interest rate according to HDFC Bank.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.