Cheapest Car Loan:Festive season is going on in the country. If you are planning to buy your dream car by borrowing money during this season, then this news is useful for you. These days, some banks like Canara, UCO, SBI are offering zero processing charge loan to the customers to buy a new car. To fulfill the dream of buying a car in this festive season, let us know the answers to all such questions which bank is providing loans to the people at cheap rates and how much will be the monthly EMI for the car loan.
In India, people generally take car loans up to Rs 5 lakh. The remaining down payment is made in cash from your savings. If you want to take help of loan scheme of Rs 5 lakh to buy a new car, then check here the list of 18 banks including government and private, interest rates and monthly EMI details on car loan up to Rs 5 lakh with tenure of 5 years.
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In which bank is the cheapest car loan available?
UCO Bank is charging interest at the rate of 8.45 to 10.55 percent on Rs 5 lakh car loan with 5 years tenure, in which the monthly EMI is coming between Rs 10,246 to Rs 10,759.
Similarly, Union Bank of India is charging interest at the rate of 8.7 to 10.45 percent on car loan, in which the EMI on a loan of Rs 5 lakh with a tenure of 5 years will be between Rs 10,307 to Rs 10,735.
Canara Bank is offering car loan at an interest rate of 8.7 to 12.7 percent for 5 years, due to which the EMI on a car loan of Rs 5 lakh in the bank will be between Rs 10,307 to Rs 11,300.
Bank of Maharashtra is offering interest rates ranging from 8.7 percent to 13 percent, due to which your EMI on a loan of Rs 5 lakh will be between Rs 10,307 to Rs 11,377.
Punjab National Bank is charging interest at the rate of 8.75 to 10.6 percent on Rs 5 lakh car loan with 5 years tenure, in which the monthly EMI will be between Rs 10,319 to Rs 10,772.
Bank of India is charging interest at the rate of 8.85 to 12.1 percent on car loan, in which the monthly EMI on a car loan of Rs 5 lakh with a tenure of 5 years will be between Rs 10,343 to Rs 11,148.
In the country’s largest government bank SBI, the interest rate on car loan up to Rs 5 lakh with a tenure of 5 years ranges from 9.05 to 10.1 percent, due to which the monthly EMI is between Rs 10,391 to Rs 10,648.
Whereas Bank of Baroda is charging interest at the rate of 8.95 to 12.7 percent on the same tenure and loan amount, in which the monthly EMI is between Rs 10,367 to Rs 11,300.
Here is a list of car loan rates, EMIs and processing fees of 18 banks.
Car Loan Rates and Processing Fees | |||
bank name | interest rate (%) | How much will be the EMI on a car loan of Rs 5 lakh with a tenure of 5 years? | processing fee (This % 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 | 8.95 – 12.70 | 10,367 – 11,300 | Up to Rs 2,000 |
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) |
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 | 8.80 – 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 | 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) |
Rates and charges as of 1st October 2024 | |||
Source: Paisabazaar.com |
(Note : This information related to car loan has been collected by Paisa Bazaar. Paisa Bazaar claims to have collected updated data till October 1, 2024 from the websites of the respective banks. The interest rates being charged by the bank for car loan are shown in the list. The EMI has been calculated based on the interest rates given in the list for a loan amount of Rs 5 lakh and a tenure of 5 years. Apart from this, the processing charge is also shown in a column according to the bank in the list.)
You can benefit from a better credit score
Keep in mind that the loan interest rate depends on the credit score of the applicants. If your credit score is above 750 i.e. it is better, then you are more likely to get a loan at a lower interest rate.
Some banks offer a concession of 0.25% in car loan interest rate to existing housing loan customers and corporate salary account holders.
Punjab and Sind Bank is offering up to 50% concession on processing fees to car buyers under the PSB Apna Vahan Sugam scheme.