Repo rate unchanged: A look at car loan interest rates of various banks

Interest rates likely to stay the same for now, but lenders may still adjust terms based on their considerations

The Reserve Bank of India (RBI) on Friday kept the repo rate unchanged at 6.50 per cent after a three-day meeting of its monetary policy committee (MPC).

 

With the repo rate unchanged, most likely there will be no change in your car loan interest rates.

 

How does the repo rate impact car loans?

 

The repo rate is the interest rate at which the RBI lends money to commercial banks. When the repo rate is increased, banks incur higher borrowing costs from the RBI. To offset this, lenders increase the interest rates on loans such as home, car, and other types of credit. This leads to higher EMIs, requiring borrowers to pay more. However, since the RBI has kept the repo rate unchanged, there will be no effect on car loan interest rates.

 

The EMI you pay on a loan can vary based on the interest rate. Having a good credit score may help you secure a better deal with a lower interest rate. Before finalising a loan, it is wise to compare the interest rates offered by different banks. A lower interest rate leads to reduced EMIs, making your monthly payments more manageable.

 

To assist in this process, we have compiled a comprehensive list of new car loan rates and charges by 18 leading banks. 

Read LIVE updates on RBI MPC Meeting

 

New car loan rates and charges

 

UCO Bank is offering interest rates of 8.45 per cent to 10.55 per cent, translating to EMIs between Rs 10,246 to Rs 10,759 for a loan of Rs 5 lakh over a tenure of five years.

 

Union Bank of India is offering rates of 8.70 per cent to 10.45 per cent, resulting in EMIs ranging from Rs 10,307 to Rs 10,735 for a loan amount of Rs 5 lakh over five years.

 

Punjab National Bank is offering rates of 8.75 per cent to 10.60 per cent, translating to EMIs between Rs 10,319 and Rs 10,772 for a loan amount of Rs 5 lakh over five years.

 

Bank of India is offering an interest rate of 8.85 per cent to 12.10 per cent, translating to EMIs between Rs 10,343 to Rs 11,148 for a loan amount of Rs 5 lakh over five years.

 

Indian Overseas Bank is offering an interest rate of 8.85 per cent to 12.00 per cent, translating to EMIs between Rs 10,343 to Rs 11,122 for a loan amount of Rs 5 lakh over five years.

 

Punjab and Sind Bank is offering an interest rate of 8.85 per cent to 10.25 per cent, translating to EMIs between Rs 10,343 to Rs 10,685 for a loan amount of Rs 5 lakh over five years.

 

Bank of Baroda is offering an interest rate of 9.00 per cent to 12.70 per cent, translating to EMIs between Rs 10,379 to Rs 11,300 for a loan amount of Rs 5 lakh over five years.

 

Here is a list by Paisabazaar.com on car loans offered by 18 banks with loan rates, EMIs and processing fees.