Car Loan Interest Rates - HDFC, SBI, Kotak, ICICI Bank, All Banks
Lowest Car Loan Interest Rates in India Oct 2017
- Lowest car loan interest rates starting @ 9.25%.
- Compare and get the best car loan offers from banks
- Apply car loan online
- Maximum loan tenure upto 7 years
- Maximum loan amount based upon on road price and ex - showroom price
Car Loan Interest Rates Comparison, Lowest EMI Oct 2017, Best rates
|Bank||Car Loan Interest Rates||Maximum Loan Amount, Max Tenure|
|Andhra Bank Car Loan||9.20% Fixed||85% of on-road price for 7 years|
|Axis Bank Car Loan||11.00% - 12.00% Fixed||95% of ex-showroom price for 7 years|
|Bank of India Car Loan||9.35% Floating||85% of on-road price for 7 years|
|Bank of Maharashtra||9.20% Floating||85% of on-road price for 7 years|
|Central Bank of India||8.70% Floating||90% of on-road price for 7 years|
|Corporation Bank||9.15% - 9.90% Floating||85% of ex-showroom price for 7 years|
|Federal Bank||9.92% - 10.52% Fixed||90% of ex-showroom price for 7 years|
|HDFC Bank||9.25% Fixed||100% of ex-showroom price for 7 years|
|ICICI Bank||10.75% - 12.75% Fixed||100% of ex-showroom price for 7 years|
|IDBI Bank||9.95% Fixed||90% of ex-showroom price for 7 years|
|Indian Bank||9.95% Floating||85% of on-road price for 7 years|
|IndusInd Bank||10.65% - 15.50% Fixed||85% of ex-showroom price for 5 years|
|Kotak Bank||11.50% - 13.50% Fixed||90% of ex-showroom price for 5 years|
|OBC||8.45% - 8.95% Floating||85% of on-road price for 7 years|
|PNB||8.50% - 8.95% Floating||85% of on-road price for 7 years|
|SBI||9.20% - 9.25% Floating||85% of on-road price for 7 years|
|Tamilnad Mercantile Bank||11.30% - 11.55% Floating||85% of on-road price for 5 years|
|Union Bank of India||9.00% Floating||85% of on-road price for 7 years|
|United Bank of India||9.35% - 10.45% Floating||85% of on-road price for 7 years|
Car Loan Eligibility Check
You may be eligible for car loan in India from one or more banks if you meet the following eligibility conditions:
Eligibility Criteria for Car Loan
|Minimum and Maximum Age||
Note: However, many banks require minimum age of 21 years
Note: Loan amount depends upon the value of the car and the EMI you can pay
|Net Monthly Income||
|Minimum Work Experience||
|CIBIL Score for Car Loan||
Lowest EMI for Car Loan
Car Loan EMI is the amount that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of both principal amount and interest component. Interest component on your EMI is higher in early months and reduced with each EMI. Car Loan EMI Calculator helps you to calculate your monthly EMI at desired interest rate for a particular tenure.
Car Loan EMI depends upon loan amount, interest rate and loan tenure
- Loan amount – If you apply for a high loan amount, then your EMI for Car loan will be high
- Interest rate – Higher interest rate on your loan leads to high amount of EMI
- Loan tenure – EMI on car loan reduces in case of high loan tenure
Comparison of Car Loan Interest Rates in India
- Car Loan processing fees – Most banks charges minimum processing fees of Nil to upto Rs.3,000. To get lowest fee, comparison of car loan rates, offers and cashback applying online through MyLoanCare.
- Car Loan insurance premium – Since these are secured loans, but it is advisable to take an insurance policy when availing a loan. However, the premium varies from bank to bank depending upon the risk coverage under various policies. So, check the loan sanction letter carefully to know the coverage and premium.
- Car Loan prepayment and foreclosure – When you want to repay your loan partially before time, it is called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to even upto 5%. So, check carefully if the low interest rate car loan you are getting comes with high prepayment or foreclosure charges. Note that some car loans cannot be repaid before time.
- Car Loan down payment – Banks offer car loan either at 80% of on-road price or 100% of ex-showroom price. However, 80% of on-road is almost equivalent to 95% of ex-showroom price. You are advised to fund maximum as down payment as it reduces your burden of high monthly payments.
Do’s and Don’ts while taking Car Loan
To get best and lowest car loan interest rates online, read the do’s and don’ts mentioned below.
Checklist for Car Loan
- Identity proof
- Residence address and ownership proof
- Income proof
- Down payment dealer receipt
- Car quotation
- Photo identity proof
- Bank continuity proof
- Bank statement
- 1 passport size photograph
- Latest ITR
- Investment proof if you have any Fixed Deposit, Shares, Fixed Assets, etc
Documents Required for Car Loan
|Documents ID||Individuals||Firms, Partnerships|
|Signed Application Form||Required|
|Identity Proof||PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card|
|Certificate and Proof of Business Existence||PAN , sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI|
|Address Proof||Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old)||Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter|
|Age Proof||PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate|
|Income Proof||Form 16, last 3 months salary slip, last 3 months' bank account statement showing salary credit||Last 2 years ITR, last 3 months bank account statement|
|Car Quotation||Quotation of cost of the car selected from the dealer|
Frequently Asked Questions on Car Loan
Car loans are usually taken to buy a new car or used car. Car loan rates are given at fixed rate. If you have a low CIBIL score, then you should not apply in multiple banks for car loan as each rejection will drop your CIBIL score.How can I apply for car loan?
You can apply for car loan in several ways. You can directly visit the bank branch and meet the sales person, contact a car loan agent or apply online at any bank or NBFC’s website. You can also compare car loan interest rates of all banks online at MyLoanCare and apply for car loan.What is the minimum and maximum tenure of car loan?
Car loan are generally taken for a short period of time. Generally, car loan tenure is between 36 months to 84 months.What are the charges for car loan?
Apart from rate of interest, there are two types of charges being charged by the banks.
- Car loan processing fee: This is charged when you apply for the loan. The processing fee charged on car loan is upto Rs. 3,000 of the loan amount and could be reduced if you can bargain.
- Car loan preclosure fee: This is charged when you close your loan before the completion of loan tenure. Prepayment penalty charged may be upto 5% of the outstanding amount.
Car loan CIBIL score is very important. Good CIBIL score indicates good repayment record and hence banks can offer you higher loan amount at low rate of interest for car loan. Bad CIBIL Score will result in either loan at higher interest rate or rejection of the loan application. So, make all your payments on time and maintain your CIBIL in order to get best car loan rates.What is ex-showroom price and on road price?
- Ex-showroom price is the price of the car including excise duty but excluding local duties and statutory charges.
- On road price is the price you pay for the car including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on road price tends to be 15-25% more than the ex-showroom price and may vary from city to city.
Yes, you need to have at least one functional bank account in your name to get a car loan. It is even better if you have an account with the same bank from which you would like to get a car Loan.Can I apply for car loan jointly with my spouse?
Yes, you can apply for car loan jointly with a co-applicant (either be your spouse or your parents). This helps you to increase your eligibility. Hence you may get higher loan amount as your co-applicant’s income also gets added to your income. In co-applicant cases, The total income is taken into consideration for calculating the eligibility.Does it affect my co-applicant if I default in car loan?
Yes, if you fail to pay the loan on time then it will also affect your co-applicant. Default in loan will affect his/her CIBIL rating as well.What are the main factors that affect interest rate of car loan?
Interest on car loan depends upon factors like down payment, loan tenure, credit report and your net income. High income with good CIBIL and maximum down payment can lend you loan at low interest rate.Can I do balance transfer on car loan?
Yes, if you are getting lower rate of interest, then you can opt for car loan balance transfer and reduce your monthly burden.Can I get top up on car loan?
Yes, you can get car loan top up but terms and conditions varies from bank to bank.How can I prevent rejection of my loan application?
Banks or NBFCs give car loan to those borrowers about whom they are sure that he/her can repay the loan. You need to know few things if you don’t want your application to get rejected:
- Job stability for car loan is important. You need to be stable in your current job as too many job changes can impact negatively at the time of loan approval
- You should not be having too many loans running at one time. Banks can reject your application if you are already paying too many EMI’s at same time.
- Don’t give your landline number for tele-verification if you know that nobody is there at home when you are at work. A typing mistake in apartment number can also put negative impact on lenders.
Banks or lenders keep on adding these small things and reject your loan application.What should I do if my car loan application gets rejected by bank?
Some possible reasons why your application gets rejected are already running multiple loans and hence a bank may be in doubt about your repayment ability of a new loan.
- In this case, if you have a spouse who is also working, you can add him/her as a co-applicant to boost the combined salary levels.
- Clear your old debts first so that your leverage levels come down.
- Balance transfer of your existing loans so that the rate of interest on loans can come down and additional loan can be availed.
Nowadays, banks give various offers on Car Loan to give the best rates to individuals. To get Car Loan with lowest interest rate and lowest EMI, compare new rates and offers of all banks at MyLoanCare. You can do rates comparison, check your eligibility, apply online and get the cheapest rate on Car Loan. MyLoanCare helps you throughout the loan process from the day you apply to the time you get complete disbursement. You can even track your loan status after getting registered with us. MyLoanCare make it easy for you to get hassle free Car Loan with ultimate cashback and refer and earn benefits. So, apply for Car Loan today and enjoy the benefits.