10 Best Banks for Car Loans in India to start your journey
Indian auto market has more than 35 financiers who offer auto finances to the intended car buyers. India is today one of the fastest growing automobile markets in the world, which has got so much of potential and hence a number of auto finance companies have come up to tap this booming market.
Let us now see the following that is considered as Top banks that offer affordable and Lowest Rate of Interest on car loans:
- ICICI Bank: Interest Rate – 10.75% to 12.75%
ICICI bank offers car loans with its fixed interest rates available to both salaried as well self-employed professionals. The bank even offers car loans up to 100% for the ex-showroom. Gives maximum tenure of 7 years and reduced documentation for existing ICICI bank a/c holders. Keep in mind that the processing charges are high and the bank also charges for documentation.
- SBI Bank: Interest Rate – 9.20% for Women and 9.25% for Others
The largest segment of Indian banking sector is also known for its attractive schemes and also have special offers for women. Their schemes include SBI New Car Loan Scheme, SBI Loyalty Car Loan Scheme for existing home loan borrowers, SBI Nano Youth Car Loan Scheme for a purchase of TATA Nano car, etc. SBI only cover the loan amount of about 85% which includes Registration, Insurance and Extended Warranty, Total Service Package, Annual Maintenance Contract and Cost of Accessories, though they have 7 years tenure. Existing SBI a/c holders can get lower interest rates.
- Axis Bank: Interest Rate – 9.15% to 11.50%
The bank offers some of the best and costs effective auto loans for its esteemed customers. The only requirement is to meet the eligibility criteria for the sanction of the loans and have good credit history. The option to go for flexible interest helps avail the best rate in the market, however, there is always a chance for the interest to go higher. So there is a risk associated with it so fixed rate would be safer to opt. The processing charges a bit higher including the interest rate.
- IDBI Bank: Interest Rate – 10.35% Fixed
IDBI Bank is one among the 26 banks run by Govt. of India. The bank offers a maximum tenure of 7 years for repayment and offers low processing fees. They also have dealer tie-ups which enable them to give discounts to customers.
- Allahabad Bank: Interest Rate – 9.85% and Benchmark MCLR rate is 9.60%
The interest rate from this bank is the best you can find and the hassle free availability makes it easy to procure the loan too. Gives loan coverage of 85%, however, the processing fee is 0.50% of loan amount or a maximum of Rs.5750 whichever is higher. Another positive factor is that there is no restriction on the number of cars that can be financed by an individual.
- Oriental Bank of Commerce: Interest Rate – 10.2%-12.75%
A maximum of up to 50 lakhs is available as finance for your vehicles. They have no pre-closure fee and offer tenure of up to 7 years. The existing customers can also get concessions on the interest rates. They have nominal processing fee charges.
- HDFC Bank: Interest Rate – 9.25% to 11.60%
With a huge customer base and one of the best banks in India, HDFC bank offers a 100% finance of the value of the car. They offer one of the best deals along with low down payment. Flexible tenure of 7 years and stability in EMI payments. However, the processing charges are high with documentation charge of Rs.600/-.
- Federal Bank: Interest Rate – 10.30% – 11.40% (fixed) and 10.65% – 12% (floating)
The bank assures a speedy processing of loans with best interest rates. Repayment tenure of up to 7 years with transparent charges. The bank has limited documentation and easy terms and conditions.
- Bank of India: Interest Rate – 10.40%
This bank offers car loan under the name of BOI Star Vehicle Loan Scheme. They offer a loan amount of up to 75%. There are nil processing charges for senior citizens, retired employees of the bank and pensioners drawing a pension from this bank. They charge Rs.500 as processing fees.
- Yes Bank: Interest Rate – 10.25% to 12.25%
They have multiple repayment options with maximum tenure availability of 7 years. They offer loans of up to 90% of coverage and are quite competitive with its interest rates. YES Bank has a high processing fee charge at Rs.5000/-.
So according to me, these are the top 10 banks who offer best car loans at a competitive rate of interest in India. However before signing a deal always look for the fine prints on the offer document to take an informed decision while applying for a new car loan.
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