Car Loan Rates in Festive Season :Many people buy new cars during the festive season. During this time, most car companies also give special festival discounts. Apart from this, car loan giving banks also come up with festival offers, which apart from low interest rates, also include other attractive benefits like waiver in processing fees. If you are also planning to buy a car this festive season, then you must compare the interest rates on car loan. This will not only reduce your EMI, but you can also get good offers.
How are interest rates decided on car loans?
While offering car loan interest rates to a customer, banks consider many other things besides the RBI repo rate. For example, people with good credit scores often get loans at lower interest rates. If your credit score is above 750, you can get a higher loan and may have to pay a lower interest rate. Apart from this, factors like your monthly income, existing loan, value of the car, loan amount and tenure can also affect the car loan rate.
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Offers on car loan during festive season
On the occasion of festivals like Navratri, Dussehra and Diwali, many banks offer special offers on car loans. These also include reduction in interest rates, waiver of processing fees, loan up to 100% of the car price, special discounts and freebies.Information about car loan interest rates of some major banks is given below. As an example, the EMI and processing fees for a loan of Rs 5 lakh for a tenure of 5 years are also given:
|
bank name |
Car Loan Interest Rate (%) |
EMI (in Rs) |
processing fee |
|---|---|---|---|
|
Car loan of Rs 5 lakh for 5 years |
(as % of loan) |
||
|
Union Bank of India |
8.70 – 10.45 |
10,307 – 10,735 |
Nil |
|
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 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) |
|
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 |
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) |
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Right Credit Score for Car Loan
Although some banks do not set a minimum credit score for giving a car loan, a credit score above 750 is considered better for a car loan. With this, not only can you get more loan, but the interest rate is also expected to be lower. On the contrary, if the credit score is low, then apart from difficulty in taking loan, one may also have to pay higher interest rate.
Also read: Top Credit Card Festive Offers: Shoppers enjoy the festive season, top credit cards including SBI, HDFC, ICICI are offering great offers.
Keep these things in mind before taking a car loan
– Check credit score: A better credit score will help you get a loan at a lower interest rate.
– Compare interest rates: Keeping in mind the offers of the festive season, it can be beneficial to compare the interest rates of different banks.
– Processing fees and other fees: Get information in advance about the fees and other charges incurred during loan processing.
– Loan Tenure: Calculate the loan tenure and EMI properly so that there is less burden on your monthly budget.
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The festive season is considered to be the best time to buy a car, but if you have to take a loan for it, then it is important to choose the offer with the right interest rate. By comparing interest rates, processing fees and other offers, you can not only buy a car at a lower cost but can also manage your budget in a better way.
