After the big drop in GST rates, car sales have increased during the festive season. If you want to buy a car, it is important to first check which bank gives the lowest interest rate on a car loan. Many banks and NBFCs offer car loans, but only a few give the lowest rates. Let’s see which banks are offering the best deals on car loans.
Which Bank Offers the Cheapest Car Loan?
According to BankBazaar, many public and private banks are offering car loans at interest rates from 7.60% to 10.50%. The lowest rate is not from SBI, but from another public sector bank.
Car Loan Interest Rates by Bank:
- State Bank of India: Starting from 8.90%,up to 7 years
- Indian Overseas Bank: Starting from 7.80%,up to 7 years
- IDFC First Bank: Starting from 9.99%,up to 10 years
- Canara Bank: Starting from 8.05%,up to 7 years
- HDFC Bank: Starting from 9.40%,up to 7 years
- IndusInd Bank: Starting from 8.00%,up to 5 years
- ICICI Bank: Starting from 9.15%,up to 7 years
- Karur Vysya Bank: Starting from 8.55%,up to 7 years
- South Indian Bank: Starting from 8.75%,up to 7 years
- Kotak Mahindra Bank: Contact the bank, up to 7 years
- IDBI Bank: Starting from 8.30% (floating),8.90% (fixed),up to 7 years
- Yes Bank: Contact the bank, up to 8 years
- Karnataka Bank: Starting from 9.05%,up to 7 years
- Federal Bank: Starting from 10.50%,up to 7 years
- Equitas Small Finance Bank: Starting from 9.00%,up to 7 years
- Punjab National Bank: Floating 7.85%,Fixed 8.85%,up to 7 years
- Union Bank of India: Starting from 7.80%,up to 7 years
- Axis Bank: Starting from 8.80%,up to 7 years
- Bank of Baroda: Fixed 8.65%,Floating 8.15%,up to 7 years
- Bank of India: Starting from 7.85%,up to 7 years
- Bank of Maharashtra: Starting from 7.70%,up to 7 years
- Central Bank of India: Starting from 7.85%,up to 7 years
- Indian Bank: Starting from 7.75%,up to 7 years
- UCO Bank: Starting from 7.60%,up to 7 years
- Bandhan Bank: Starting from 9.47%,up to 7 years
- Looking at this list, the lowest car loan rate is 7.60% from UCO Bank.
Remember, loan rates also depend on your credit score.