The majority of car buyers finance their purchase with a loan. Having a comfortable car gives you a sense of security and safety, especially on regular commutes. Thanks to low interest rates on auto loans, it’s easier than ever to acquire a car.
Loan interest rates in August 2024: These 8 banks have revised loan interest rates in August
Who can avail car loan in India
- A Resident Indian
- Above the age of 18 years
- A salaried professional, a self-employed professional, or a business owner earning at least Rs 25,000 per month (can vary with bank).
- Available for Aadhar OTP based eKYC/Video KYC
- In India, during the loan application and video KYC process
- Creditworthy with a good credit score.
In addition to meeting the requirements for eligibility and submitting the necessary paperwork for a car loan, you also have to pay the down payment on the vehicle, up to a predetermined percentage depending on your loan eligibility. If you don’t fit the bank’s qualifying requirements, you could additionally have to provide information about your guarantee.
Car loan interest rate offered by the banks
The EMIs you pay on the loan will vary significantly depending on the interest rate. You might be able to work out a better deal and get a cheaper interest rate if you have good credit. Before choosing a bank to avail the loan, compare the interest rates different banks offer. Note that a reduced interest rate decreases monthly outflow because of the lower EMI.
Here are the interest rates for a car loan with an EMI (Rs) of Rs 5 lakh and a tenure of 5 years.
| NEW CAR LOAN-RATES AND CHARGES | |||
| Name of Lender | Interest rate (%) | EMI (Rs) Loan amount-5 lakh Tenure-5 years |
Processing fee (% of loan amount) |
| Union Bank of India | 8.70 – 10.45 | 10,307 – 10,735 | Rs 1,000 |
| Punjab National Bank | 8.75 – 10.60 | 10,319 – 10,772 | 0.25% (Rs. 1,000 – Rs. 1,500) |
| Bank of Baroda | 8.90 – 12.70 | 10,355 – 11,300 | Up to Rs 2,000 |
| Canara Bank | 8.70 – 12.70 | 10,307 – 11,300 | 0.25% (Maximum Rs 2,500) |
| Bank of India | 8.85 – 10.85 | 10,343 – 10,834 | 0.25% (Rs. 1,000 – Rs. 5,000) |
| UCO Bank | 8.45 – 10.55 | 10,246 – 10,759 | Nil |
| State Bank of India | 8.95 – 10.00 | 10,367-10,624 | Up to Rs 1,500 |
| IDBI Bank | 8.80 – 9.65 | 10,331 – 10,294 | Rs 2,500 |
| Bank of Maharashtra* | 8.70 – 13.00 | 10,307 – 11,377 | 0.25% (Rs. 1,000 – Rs. 15,000) |
| Indian Overseas Bank** | 8.85 – 12.00 | 10,343 – 11,122 | 0.50% (Rs 500 – Rs 5,000) |
| ICICI Bank | 9.10 onwards | 10,403 onwards | Up to 2% |
| HDFC Bank | 9.20 onwards | 10,428 onwards | 0.50% (Rs 3,500 – Rs 8,000) |
| Karnataka Bank | 8.88 – 11.37 | 10,350 – 10,964 | 0.60% (Rs 3,000 – Rs 11,000) |
| Federal Bank | 8.85 onwards | 10,343 onwards | Rs 2,000 – Rs 4,500 |
| Punjab and Sind Bank*** | 8.85 – 10.25 | 10,343 – 10,685 | 0.25% (Rs. 1,000 – Rs. 15,000) |
| South Indian Bank | 8.75 onwards | 10,319 onwards | 0.75% (Max: Rs 10,000) |
| IDFC First Bank | 9.00 onwards | 10,379 onwards | Up to Rs 10,000 |
| City Union Bank | 14.45 – 14.95 | 11,751 – 11,882 | 1.25% (Min: Rs 1,000) |
Things to note
*0.25% interest rate concession for existing housing loan borrowers and corporate salary account holders.
**0.50% interest rate concession to borrowers with credit scores of 800 and above. Interest rate concession of 0.25% to borrowers having credit scores of 750-799.
***Concession of up to 50% on processing fee for PSB Apna Vahan Sugam.
Rates and charges as of 14th August 2024
Source: Paisabazaar.com
