Buying a new car is no more a luxury but a necessity to manage the needs of life. Arguably, new car buying is the second most expensive decision one would make in life apart from owning a house. One of the reasons why some of us hesitate to buy a new car is due to a tight budget. After all, we all have monthly expenses to take care of.
One of the easiest ways to own a new car is to take a car loan. These days, there are many lenders offering car finance options to fund your dream of buying a new car. All that is required for you is to have financial discipline to keep aside a fixed amount of money to pay your monthly installments and then you can bring a car straight to your porch.
While it all sounds rosy, there are some important things to consider before taking a car loan. They are interest rates offered by the lender, number of instalments, and the monthly EMI amount. You can use our car loan EMI calculator to find out the number of installments, EMI amount, and interest rate easily.
While taking a car loan, one must always look around to see who is offering the right amount of money at the lowest interest rate. Car Lelo wants to help turn your dream of owning a new car into reality. Hence, we bring for you reputed banks under one roof offering you the best interest rates in town. Read on to find out more.
HDFC bank offers car loans at affordable interest rates. The interest rate for HDFC’s car loan varies between 7.89 - 9.0 percent. The paperwork is negligible for loans through this bank.
Another popular bank for car loans is Axis Bank. Car loans through Axis Bank usually fall between 7.99 - 8.99 percent interest rate.
ICICI also has car loans with affordable interest rates that range between 7.99 - 8.99 percent.
The interest rate for SBI’s car loan is between 7.80 - 8.90 percent. You can easily get a car loan from SBI with a good credit score and proof of income.
Bank of Baroda
Bank of Baroda has an affordable interest rate of 7.80 - 8.90 percent. The documentation process is also very easy.
Union Bank of India
Union Bank of India has almost similar interest rates to other banks on this list, which are between 7.80 - 8.90 percent.
Kotak Mahindra has an interest rate of 7.99 - 9.20 percent for their car loan products.
YES bank’s interest rate for car loans falls between 7.99 - 8.99 percent.
Read Also: Tips and Tricks to Manage a Car Loan
Please note the following points before opting for bank loans.
- Interest rates are subjected to change without prior notice
- Documentation charges are applicable in Government Sector Banks (GSB)
- Foreclosure options available in public sector banks and foreclosure waivers available in GSB.
We have covered some of the major banks offering car loans in this article. Car Lelo helps you to avail a car loan in three easy simple steps. Our car loan interest comparison tool helps you compare different interest rates and processing fees of different banks. At Car Lelo we help simplify the process of car buying.