Car loan interest rates in November:For some people, buying a car is a goal, while for others it is a necessity. Despite all circumstances, buying a car is a major financial commitment that may drain your savings or result in the need for a car loan.
Generally, the interest rates on car loans are lower than those on unsecured loans like personal loans. When looking for car loan options, it is important to compare offers from different financial institutions. Some banks may have special partnerships with showrooms, due to which processing may be faster and rates may also be lower.
Some banks offer pre-approved car loans to select customers or special interest rates to existing home loan customers. In such a situation, it becomes necessary to compare car loan options from different banks to ensure a profitable deal.
It is important to keep in mind that the interest rates applicable on car loans are decided on the basis of your credit score and income. Many banks have linked their lending rates to credit scores. A credit score of 750 or more can help you get a loan at more favorable interest rates, while a lower credit score may deprive you of getting a car loan or force you to take a loan at a higher interest rate. Therefore, it is advisable to review your credit report before applying for a car loan.
It is also important that you cover some expenses yourself. Generally, banks offer finance options only for 80% to 90% of the on-road price of the car. While some banks may provide financing up to 100% of the vehicle’s valuation, this depends on specific terms and conditions and is not guaranteed.
Generally, banks provide loans for a tenure of up to 7 years. Apart from the interest rate, it is advisable for customers to inquire about other charges such as processing fees and repayment charges when borrowing from a bank to buy a car. These may vary depending on the policies of the bank.
Below is a list of government and private banks for people looking for cheap loans to buy a car. In the list, how much monthly EMI will be made on car loan up to Rs 5 lakh with tenure of 5 years. What is the interest rate, every important information related to the loan offer is given here.
| New Car Loan Rates and Charges | |||
| bank name | interest rate (%) | How much EMI will be made on car loan up to Rs 5 lakh with tenure of 5 years? | processing fee (% of loan amount) |
| Union Bank of India | 8.70 – 10.45 | 10,307 – 10,735 | Nil |
| Punjab National Bank | 8.75 – 10.60 | 10,319 – 10,772 | Up to 0.25% (Rs. 1,000 – Rs. 1,500) |
| Bank of Baroda | 8.95 – 12.70 | 10,367 – 11,300 | Up to Rs 750 |
| Canara Bank | 8.70 – 12.70 | 10,307 – 11,300 | Nil |
| Bank of India | 8.85 – 12.10 | 10,343 – 11,148 | 0.25% (Rs. 1,000 – Rs. 5,000) (Processing charges are waived off for individuals having CIBIL personal score 700 and above or -1/0) |
| UCO Bank | 8.45 – 10.55 | 10,246 – 10,759 | nil |
| State Bank of India | 9.05-10.10 | 10,391-10,648 | Nil |
| IDBI Bank | 8.85 – 9.65 | 10,343 – 10,538 | Rs 2,500 |
| Bank of Maharashtra* | 8.70 – 13.00 | 10,307 – 11,377 | Nil |
| 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 | Up to 1% (Rs 3,500 – Rs 9,000) |
| 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 | 9.60 onwards | 10,525 onwards | Up to Rs 10,000 |
| City Union Bank | 9.90-11.50 | 10,599-10,996 | 1.25% (Min: Rs 1,000) |
| ,Interest rate concession of 0.25% for existing housing loan borrowers and corporate salary account holders. | |||
| ,Car buyers with credit score above 800 can get 0.50% interest rate concession and those with 750-799 credit score can get 0.25% interest rate concession on car loan. | |||
| ,Up to 50% concession in processing fees on car loan under PSB Apna Vahan Sugam Scheme. | |||
| Rates and charges as of 13th November 2024 | |||
| Source: Paisabazaar.com | |||
(Note: The list related to car loan interest rates has been prepared by Paisa Bazaar.com. The details of all the banks included in the list are till November 13. Before deciding to take a car loan, confirm the exact information related to the interest rate from the official website and branch of the bank because vehicle companies keep changing the prices of vehicles from time to time, due to which banks also keep changing the car loan rates. .)
