To buy a car ? Find out the lowest interest rates on auto loans offered by the 18 biggest banks
After months of setbacks due to the Covid-19 pandemic, the Indian auto industry has started to embark on a road to recovery ahead of the long-awaited holiday season. Major automakers, including Maruti Suzuki, Hyundai and Tata Motors, saw their domestic sales increase by 37%, 26% and 101%, respectively, in July of this year.
These trends are a testament to the fact that many people prioritize buying a car to minimize public or shared transport and avoid getting infected with the dreaded virus. Buying a car takes a lot of money; However, many prefer to use an auto loan to finance their purchase, especially when auto loans are available at competitive interest rates which are generally slightly lower than personal loan rates.
If you are considering taking out a car loan, note that most lenders would finance up to 80-90% of the cost of the car on the road (i.e. the balance should be paid out of pocket) for terms of up to seven years, while some banks could lend up to 100% of the car appraisal cost subject to conditions. That being said, the auto loan interest rate applicable to you would be determined by the lender based on your age, income, credit rating, loan amount, etc., according to BankBazaar.
As such, it makes sense to compare auto loan offers between banks and NBFCs to find the deal that best meets your financing needs based on your eligibility. Note that many lenders offer car loan deals on favorable terms for their existing home loan borrowers. In addition, some banks might offer pre-approved auto loan deals to their selected customers with attractive rates that could be disbursed quickly.
To help you make informed decisions, we’ve compiled a list of 18 government and private banks, including SBI, HDFC Bank, Axis Bank, and ICICI Bank, which currently offer auto loans starting at less than 8% per annum. We have also provided indicative IMEs. for Rs 7 lakh loan for a term of 5 years for each of the banks mentioned in the table below.
Note that we have only taken into account the lowest interest rate advertised for each lender, and the interest rate applicable to you may be higher depending on the amount of your loan, your credit rating. , the type of occupation or any other condition of the lender you have chosen. . In addition, you may need to meet additional eligibility requirements to qualify for the lowest car loan interest rate from some banks.
18 best banks offering auto loans starting at less than 8% per annum right now
Disclaimer: Data collected from respective banks’ websites on August 24, 2021. The lowest advertised interest rate offered by banks regardless of loan amount is shown in the table. The IMEs were calculated on the basis of the interest rate mentioned in the table for a loan of Rs 7-lakh with a term of 5 years (the processing fees and other charges are assumed to be zero for the calculation of the EMI ). The interest rates mentioned in the table are indicative and may vary depending on the bank’s T & Cs. ** Including discount for government employees ^ HDFC Bank interest rate.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.