Latest car loan rates in India this May, starting from 8.45% per annum

Top banks are offering car loans this May starting at 8.45 per cent p.a., with EMIs from ~1,581/lakh. Compare rates, fees, and terms to find the best deal for your budget.

Latest car loan rates in India this May, starting from 8.45% per annum

 

Buying a car continues to be a significant milestone for many Indian households, often supported by financing from banks and financial institutions. Choosing the right car loan can make a notable difference in long-term repayment costs, making it essential for consumers to compare available options carefully. Rates start as low as 8.45 per cent per annum, with several banks providing up to 100 per cent financing on the on-road price of vehicles

 

Top Car Loan Offers

 

Based on recent data from BankBazaar.com, here are some of the most attractive car loan offerings: 

 

Canara Bank: Offers interest rates starting at 8.45 per cent per annum, with EMIs approximately Rs 1,581 per lakh over seven years.

 

Union Bank of India: Provides rates from 8.45 per cent per annum, with EMIs around Rs 1,581 per lakh.

 

Indian Overseas Bank: Interest rates begin at 8.60 per cent per annum, with EMIs approximately Rs 1,589 per lakh.

 

State Bank of India (SBI): Offers rates starting from 9.10 per cent per annum, with EMIs around Rs 1,614 per lakh.

 

ICICI Bank: Provides interest rates starting at 9.10 per cent per annum, with EMIs approximately Rs 1,614 per lakh.

 

HDFC Bank: Offers rates starting from 9.40 per cent per annum, with EMIs around Rs 1,629 per lakh.

 

Axis Bank: Provides interest rates starting at 9.40 per cent per annum, with EMIs approximately Rs 1,629 per lakh.

 

Note: EMI calculations are based on a loan amount of Rs 1 lakh over a tenure of seven years.

   

Below is the detailed list provided by BankBazaar.com

   

Name of the Bank	Interest Rate (p.a.)	EMI for Rs.1 lakh for 7 years
State Bank of India	9.10% p.a. onwards	Rs.1,614 onwards
Indian Overseas Bank	8.60% p.a. onwards	Rs.1,589 onwards
Jammu Kashmir Bank	RLLR + 0.75% p.a. onwards (floating)  RLLR + 0.25% p.a. onwards (fixed)	Contact the bank
Canara Bank	8.45% p.a. onwards	Rs.1,581 onwards
HDFC Bank	9.40% p.a. onwards (Rack Interest)	Rs.1,629 onwards
ICICI Bank	9.10% p.a. onwards	Rs.1,614 onwards
Karur Vysya Bank	9.35% p.a. onwards	Rs.1,627 onwards
South Indian Bank	8.75% p.a. onwards	Rs.1,596 onwards
IDBI Bank	8.80% p.a. onwards (floating)  9.20% p.a. onwards (fixed)	Rs.1,599 onwards  Rs.1,619 onwards
Yes Bank	Contact the bank	Contact the bank
Karnataka Bank	8.88% p.a. onwards	Rs.1,611 onwards
Federal Bank of India	9.00% p.a. onwards	Rs.1,609 onwards
Punjab National Bank	Floating: 8.50% p.a. onwards  Fixed: 9.50% p.a. onwards	Rs.1,584 onwards  Rs.1,634 onwards
Union Bank of India	8.45% p.a. onwards	Rs.1,581 onwards
Axis Bank	9.40% p.a. onwards	Rs.1,629 onwards
Bank of Baroda	Fixed: 8.80% p.a. onwards  Floating: 9.15% p.a. onwards	Rs.1,611 onwards  Rs.1,617 onwards
Bank of India	8.75% p.a. onwards	Rs.1,596 onwards

 

  Factors Influencing Interest Rates

 

Several factors can affect the interest rate offered to a borrower:

 

Credit Score: A higher credit score often results in better interest rates.

 

Loan Tenure: Shorter tenures may attract lower interest rates.

 

Type of Employment: Salaried individuals might receive different rates compared to self-employed applicants.

 

Relationship with the Bank: Existing customers might benefit from preferential rates. 

 

Additional Charges to Consider

 

While evaluating car loan options, it’s essential to account for additional fees:

 

Processing Fees: Typically range from Rs 3,500 to Rs 12,000, depending on the bank and loan amount.

 

Prepayment Charges: Some banks levy fees for early repayment, which can be a percentage of the outstanding amount.

 

Documentation Charges: Fixed charges, such as Rs 650 per case in some banks.

 

Stamp Duty: Varies based on state laws and the loan amount.