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