Car Loan Interest Rate- Compare and Check Loan Interest Rate Online

Owning a car is not tough in today’s world with many financial institutions offering car loans at competitive interest rates. Loans are available for both used as well as new cars. Moreover, lenders provide an online loan calculator which help borrowers to calculate the interest rates, loan tenure, and EMIs quickly. The interest rate is of utmost concern while availing a car loan as it affects the borrower in more than one way. Here are some details of the car loan interest rate, and how it affects the choice of a loan scheme.

Car Loan

Borrowers must avail the loan only as much as they can repay. Repayment is done through EMI. EMI (equated monthly installments) is a fixed amount that the borrower has to pay to the lender every month without fail. The major factors affecting EMI are loan amount, tenure, and interest rate. Higher the loan amount; higher will be the EMI. Higher the car loan interest rate; higher will be the EMI. Longer the loan tenure; lower will be the EMI. Here is the list of eligibility criteria required by most of the lenders.

Age: 18 to 65 years of age

Loan amount: Maximum loan amount varies from Rs.50 lakhs to Rs.1 crore.

CIBIL score:700or more

Net monthly income: Minimum Rs.18000 per mont

Employment type: Salaried, self-employed or business person

Minimum work experience: Minimum 1 year for a salaried individual; and a minimum of 5 years of business existence for self-employed with ITR of at least 2 years.

Compare Car Loan Interest Rate in India

It is crucial to compare the interest rates of car loans offered by various financial institutions before finalizing one. This will help an applicant get the best offers and lower EMIs based on his/her eligibility. The interest rate must be the first thing a borrower must check and compare; as it is directly proportional to the EMI. Another thing an applicant must compare is the processing fee. Most banks charge a processing fee between Rs.250 and Rs.20,000. Here are the interest rates of popular banks:

SBI car loan interest rate: 9.30%

HDFC car loan interest rate: 9.25%

ICICI car loan interest rate: 8.65%

Interest rates can be fixed or floating. For example, HDFC car loan interest rate is fixed and does not vary a lot from one borrower to another. A floating interest rate indicates that the interest rates may change or depends on the borrower’s eligibility. For easier comparison, here is a table which lists the interest rates and processing fees offered by the banks.

Bank

Interest rate

Processing fees

SBI

9.30% (floating)

0.51% of loan amount+ ST

Min: Rs.1020

Max: Rs.10200

HDFC Bank

9.25% (fixed)

0.40% of the loan amount

Rs.2825 – Rs.5150

ICICI Bank

8.65% (fixed)

Min: Rs.2500

Max: Rs.5000

Axis Bank

9.25% (fixed)

Min: Rs.3500

Max: Rs.5500

Bank of India

9.50% (floating)

1% of the loan amount

Min: Rs.500

Max: Rs.10000

PNB

8.75% (floating)

1% of the loan amount

Max: Rs.6000

IDBI Bank

9.00% (fixed)

Nil

Induslnd Bank

10.65% (fixed)

1% of the loan amount

Min: Rs.2500

Kotak Bank

11.50% (fixed)

0% of the loan amount

Min: Rs.3300

Max: Rs.4750

Union Bank of India

9.20% (floating)

Nil

Central Bank of India

9.00% (floating)

0.50% of the loan amount

Min: Rs.2000

Max: Rs.20000

Andhra Bank

9.40% (fixed)

Nil

Federal Bank

9.15% (fixed)

0% of the loan amount

Min: Rs.1500

Max: Rs.2500

Bank of Maharashtra

9.25% (floating)

0.25% of the loan amount

Min: Rs.1000

Max: Rs.15000

Corporation Bank

9.60% (floating)

1% of the loan amount

Min: Rs.1000

Indian Bank

9.50% (floating)

0.22% of the loan amount

Max: Rs.10191

Bank of Baroda

8.90% (floating)

0.75% of the loan amount

Max: Rs.10000

OBC

9.05% (floating)

0.50% of the loan amount

Min: Rs.500

United Bank of India

9.10% (floating)

0.59% of the loan amount

Min: Rs.500

Max: Rs.10000

Syndicate Bank

10.10% (floating)

Up to Rs.2 lakhs:  Rs.1.25 per thousand,

Min: Rs.125,

Above Rs.2 lakh is Rs.200 per lakh

How to Get the Lowest Car Loan Interest Rate Online?

Here are some of the things borrowers must and mustn’t do to get the lowest and best car loan interest rate.

Compare the Rates based on the Car Loan Amount

Some banks provide lower interest rates for a higher loan amount. The loan amount depends on the car used to calculate LTV. There is a significant difference in the loan amount offered; as some banks use the ex-showroom price as the value of the car, while others use the on-road price.

Do not Apply with many Banks

Multiple applications get recorded in an individual’s CIBIL report. Hence applying with several banks can hurt one’s chances of getting a loan.

Check for the Best Offers and Discounts

Never forget to check the offers, discounts, and the current car loan interest rates offered by the large reputed companies to the employees.

Apply for the Loan Amount Only Within the Eligibility Range

A loan application might get rejected if one applies for an amount higher than one’s eligibility.

Decide on the Type of Insurance Wisely

There are many types of insurances such as third party, zero dep, and comprehensive insurance. Check each and compare their coverage, cost, and claim settlement ratio carefully.

Do not Rely Completely on the Dealer

The loan offered by the dealer might not be the lowest or the best interest rate. Therefore, an individual needs to evaluate other options, check with the bank where you have your salary account for discounts, compare the offers and car loan interest rate for all banks.

Apart from the car loan interest rate; applicants must also enquire about the prepayment (partial prepayment of the loan amount before time), foreclosure (payment of the entire loan amount before time), and down payment (partial amount that needs to be paid by the borrower which can range from 0% to 20% of on-road / ex-showroom price) of the loan. Before apply for loan check car loan emi calculator to check emi, interest rate, tenure. After finalizing the loan and the lender, borrowers can apply for the car loan online in a hassle-free manner.