Car Loan Interest Rate: If you’re thinking of buying a car but don’t have the budget, don’t worry. You can make your dream come true by taking a car loan. Car loans are available at low interest rates. In response to popular demand, banks have decided to reduce car loan interest rates. When applying for a car loan, you need to keep a few key considerations in mind.
You can compare the interest rates and processing fees offered by different banks. Documentation, registration certificate charges, and pre-closure charges are also important considerations. You can find out how much you can borrow below.
Banks typically provide loans up to 90% of the on-road price. The on-road price includes the ex-showroom price, along with other expenses like insurance, RTO, and filing charges.
What will be the loan tenure?
Did you know that banks have simplified the car loan process? Can you obtain a loan with just a few documents? Most banks generally offer car loans for up to 8 years. If the loan is for a longer period, a higher interest rate will be charged. Customers with a loan tenure of 4 to 5 years are more likely to pay higher interest.
Which banks are offering loans on a different scale?
UCO and Canara Bank
UCO Bank is offering loans at an interest rate of 7.60%. This means the bank is offering loans for all cars and electric vehicles. Canara Bank is also offering car loans, with a 7.70% interest rate. The bank has completely waived processing fees until December 31st. Meanwhile, Union Bank of India’s car loan interest rates range from 7.80% to 9.70%.
A processing fee of up to ₹1,000 will be charged on this loan. PNB is charging a minimum interest rate of 7.80% on car loans, with a processing fee of 0.25% of the loan amount. HDFC Bank is offering a starting interest rate of 9.20 per cent on car loans.
The processing fee here is set at ₹9,000. Bank of India is also offering a minimum interest rate of 7.8 per cent on car loans. If you want to take a car loan from SBI, you will have to pay an interest rate of 8 per cent. The processing fee here ranges from ₹750 to ₹1,500.