Car Loan EMI Calculator: In today’s changing times, everyone dreams of owning a luxury car. However, there are often instances where people are unable to purchase a luxury vehicle, despite their desire to do so. In the modern era, a car has become a necessity. If you are planning to buy a car but are short on funds, do not worry.
Key Takeaways
Quick Read- Good credit score = lower interest rate
- Negotiate processing fee with bank
- Compare rates before finalising
- PSU banks generally cheaper than private
We are here to share some essential information regarding car purchases. Banks ranging from SBI to PNB are actively providing car loans at competitive interest rates. You can check the interest rates offered not only by SBI and PNB but also by HDFC and ICICI. Find out which banks are charging what interest rates on car loans.
Tips to get a better deal
- Good credit score = lower interest rate
- Negotiate processing fee with bank
- Compare rates before finalising
- PSU banks generally cheaper than private
- Strong repayment record helps bargain
- Lowest rate: Canara Bank (7.45%)
- Lowest EMI: PNB / Bank of Baroda
- Lowest processing fee: PNB / BoB
- Private sector: HDFC (8.15%)
How Banks Are Offering Car Loans
Consider a Loan from SBI
State Bank of India (SBI) also offers car loans. At this bank, interest rates are set within the range of 8.70% to 9.85%. If you avail a loan of ₹5 lakh for a tenure of 5 years, your monthly EMI (Equated Monthly Instalment) would range approximately between ₹10,355 and ₹10,587. The processing fee for this loan falls between ₹750 and ₹1,500.
HDFC and ICICI Bank Also Offer Car Loans
In the private sector, HDFC Bank is also providing car loans. Among these private sector giants, interest rates start at 8.15% for HDFC and 8.50% for ICICI. Their EMIs start at approximately ₹10,174. Here, the processing fee can range from 0.5% to 2% of the total loan amount. At PNB and Bank of Baroda, interest rates begin at 7.60% and can go up to over 10%. Their EMIs hover around ₹10,043. The processing charges are also relatively low (0.25% or a maximum of ₹2,000).
Loans Also Available from Canara Bank and Federal Bank
Canara Bank is another institution offering car loans. If you choose to take a car loan from Canara Bank, the interest rate applicable to you will start at 7.45%. Federal Bank’s rates start at 7.60%.
Discover the Benefits of a Good Credit Score
It is worth noting that the loan rate offered to you appears to be contingent upon your credit score. If you have a strong repayment record, you can negotiate with the bank to secure lower interest rates and processing fees.
