Many people in our country are rethinking about their preferred mode of conveyance amid the prevailing second wave of the Covid-19 pandemic. Many who were earlier dependent on public or shared transportation are now seriously considering buying a car to minimize the possibility of getting infected by the deadly virus when they step out.
And since cars are big-ticket purchases, many among them are also keen on taking a car loan to fulfil their aspiration, especially considering the fact that these financing facilities are usually available at lower interest rates than an unsecured loan product like a personal loan.
So, if you too are planning to purchase a new car in the near future, do note that lenders usually finance up to 80%-90% of the car’s on-road price. However, there are some banks that also offer loan products that finance 100% of the car’s valuation cost subject to terms and conditions. Also, car loans are usually available in tenures up to 7 years. But despite being a secured loan product, applicable car loan interest rates are determined by the lender based on the borrower’s credit score, among other factors, according to BankBazaar.
There’s also a processing fee that’s usually charged according to the policies of the lender. That being said, a few banks offer car loans at preferential rates for their existing home loan borrowers.
Many banks also offer pre-approved car loans to their selected customers, which could involve concessional interest rates and a quick loan disbursal. As such, it makes a lot of sense to compare the current car loan offers by different lenders to find a deal that best meets your financing requirements, as per BankBazaar.
To help you make informed decisions, we have compiled a list of 10 government and private banks that are currently offering some of the lowest car loan interest rates in the country.
We have also provided the indicative EMIs for Rs 10-lakh loan for a tenure of 7 years for each of the banks mentioned in the table below. Do note, we have only considered the lowest advertised interest rate for each lender, and the interest rate applicable to you could be higher depending on your loan amount, credit score, type of occupation, or any other terms and conditions of your chosen lender.
Top 10 Government and Private Banks Currently Offering the Lowest New Car Loan Interest Rates
Disclaimer: Data collected from respective bank websites on May 25, 2021. The lowest advertised interest rates offered by the banks have been considered in the table. Indicative EMIs have been calculated on the basis of interest rate mentioned in the table for Rs 10 lakh loan with tenure of 7 years (processing fee and other charges are assumed to be zero for EMI calculation). The interest rates mentioned in the table are indicative and may vary depending on bank’s T&C.
*Lowest rate of PSB Apna Vahan Sugam (new four wheeler). **Applicable rate for PNB Rakshak Plus (new car). ^Minimum rate for KVB Flexi Mobile Car Loan. ^^Lowest rack interest rate according to HDFC Bank.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.
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