Planning to take a car loan? Some lenders have waived processing fee

Be on the look out for more such offers during this festive season

Sanjay Kumar Singh
Last Updated at September 29, 2019 23:42 IST

Interest rates on new car loans start from as low as 8.4 per cent and go as high as 12.25 per cent.

On a loan of Rs 9 lakh taken for a tenure of five years at 8.4 per cent, the borrower would pay an EMI of Rs 18,422. His total interest cost would be Rs 2,05,292.

If the borrower were to take the same loan at a rate of 12.25 per cent, his EMI would be Rs 20,134. The total interest cost he would pay would be Rs 3,08,033.

Having a good credit score can also help. Players like Bank of Baroda will charge you zero or a lower strategic premium if you have a good score.

With the onset of the festival season, many players have reduced their processing fees on this loan. Some have even waived it altogether

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