Cheapest Car Loans:People usually take a loan to buy a car. The rest of the down payment is made from their savings. As the festival season is approaching, vehicle manufacturing companies are making new offers. In such a situation, if you are thinking of buying one of the cars launched in the meantime but want to knock the door of the bank to arrange funds due to lack of savings, then we are sharing a list of banks with you here. The list gives details of car loan and the interest rate charged by the bank on it. Along with this, details have also been given about how much monthly installment i.e. EMI will be on a car loan up to Rs 5 lakh and what is the processing charge. You can apply for a car loan by considering these important aspects.
Where can you get the cheapest car loan
Union Bank Of India
Union Bank of India is charging interest rate between 8.70 to 10.45 on a car loan of Rs 5 lakh with 5 year tenure. The bank is charging Rs 1000 as processing fee on car loan as per the loan amount. If a customer takes a car loan from this bank, then his monthly installment i.e. EMI will be Rs 10,307-10,735.
| Car loan interest rates and processing charges | |||
| Name of the Bank | Interest Rate (%) | EMI (in rupees) for a car loan up to Rs 5 lakh with a tenure of 5 years | Processing Charges (% of loan amount) |
| Union Bank Of India | 8.70 – 10.45 | 10,307 – 10,735 | ₹ 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 | Upto 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 | 9.05-10.10 | 10,391-10,648 | Upto Rs 1,500 |
| IDBI Bank | 8.80 – 9.65 | 10,331 – 10,294 | ₹ 2,500 |
| Maharashtra Bank* | 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 | ₹2,000 – ₹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 | Upto Rs 10,000 |
| City Union Bank | 14.45 – 14.95 | 11,751 – 11,882 | 1.25% (Min: Rs 1,000) |
| ,0.25% concession in interest rate for existing housing loan borrowers and corporate salary account holders. | |||
| ,Car buyers with a credit score of over 800 can avail a discount of 0.50% on interest rates, while those with a credit score of 750-799 can avail a discount of 0.25% on car loan interest rates. | |||
| ,Up to 50% discount on processing fees for PSB Apna Vahan Sugam. | |||
| Rates and charges as of 21st August 2024 | |||
| Source: Paisabazaar.com | |||
,Note: The list of car loan interest rates has been prepared by Paisa Bazaar.com. The details of all the banks included in the list are till July 21. 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 from time to time, due to which banks also keep changing the rates of auto loans.)
Similarly, banks from Punjab National Bank to City Union Bank included in the list are charging 8.70-14.95% interest on car loans. Processing charges are different in all banks. The EMI on car loans in these banks is also different.
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Car buyers can get loans at cheaper rates if they have a better credit score. Apart from this, corporate salary account holders and customers who have previously taken a housing loan can also get a discount of 0.25 percent in interest. Punjab and Sindh Bank PSB is giving up to 50% discount on processing fees under its Vahan Sugam scheme. In such a situation, customers who are thinking of arranging funds for buying a new car through a loan are advised to select the concerned bank after considering all the aspects given in the list.
