- Date : 18/10/2021
- Read: 5 mins
- Read in हिंदी: बेस्ट कार लोन ऑफर्स और ब्याज दरें
Read on to find out which bank offers lowest car loan interest rate and make a wise choice to aid your car purchase this festive season.
The festive season is almost here, and we all are now eyeing the lucrative offers most brands are coming up with, especially the car brands! However, a car is a huge investment, and buying one is not as easy as it sounds. So, how do you finance a new car? Should you skimp and save for years, curtailing your expenses to the bare minimum?
Fortunately, that’s not required. You can reach out to financial institutions that can help you finance a new car. Taking a car loan means you don’t have to pay the full amount for the car upfront; you can do so in monthly instalments, along with interest.
Here’s a list of the best car loan offers you must check out this festive season.
Bank of Baroda
Bank of Baroda is a nationalised banking and financial services company under the ownership of the Ministry of Finance. It has been around for more than a century and has earned the trust of people.
Today, getting a car loan with the Bank of Baroda is quite advantageous. The approval process involves just three steps and can be wrapped up in 30 minutes. You can take a higher loan amount and still be assured of zero foreclosure charges. Even better, once your loan is approved, you can make part payments whenever you wish to.
If you do not have an account with the Bank of Baroda, you can open one for obtaining a car loan. The car loan interest rate starts from 7.25% p.a. This festive season, however, you can benefit from a car loan at 7.00%* p.a. The rate could vary depending on your CIBIL (credit) score.
Related: Why Short-Term Car Loan Tenures Are A Better Choice?
Kotak Mahindra Bank
Kotak Mahindra Bank offers loans for buying both new and used cars as per your requirements. Kotak Mahindra Prime Ltd. Car Loan is tailored to cater to your needs.
The loans come with flexible and convenient repayment options. Moreover, loan processing is pretty quick and affordable. The interest rate on Kotak’s car loans can vary between 6.5% p.a. and 20% p.a., depending on your profile and the bank’s discretion.
As long as you check the following boxes, you are eligible for the loan:
- Indian resident
- At least 21 years of age
- Minimum income of Rs 15,000 per month
- Minimum employment stability of 1 year
- Minimum residence stability of 1 year
Central Bank
Central Bank offers a ‘Cent Vehicle Scheme’ that makes it easier to afford your dream car. The scheme lets you apply for a loan for a new two- or four-wheeler exclusively for personal use. It is a term loan that anyone aged between 18 and 65 can apply for, as long as their minimum gross annual income is Rs 3,00,000 (for a four-wheeler) or Rs 1,80,000 (for a two-wheeler).
The maximum loan amount is Rs 75,00,000 (for a four-wheeler) and Rs 10,00,000 (for a two-wheeler). Interest rates start at 7.25% and might increase based on your CIBIL score.
Related: Car Loan From Banks Vs NBFC: Here's What You Need To Know
State Bank of India (SBI)
SBI offers some great conditions and rates on its car loans. You can make part payments after two years at no additional cost, and the same goes for foreclosure. If you apply for the loan through the YONO app, there are zero processing charges. There is a processing fee of 0.4% if you apply through a dealer.
The rate of interest starts from 7.5% and can go up to 8.2% if applied via the YONO App. The same will start from 7.75% and go up to 8.45% if applied via a dealer or bank branch.
Related: Comprehensive Car Buying Guide For This Festive Season
ICICI Bank
ICICI Bank has launched an exciting limited time offer for the festive season. You can now get a car loan at special interest rates, starting as low as 7.5% p.a. (terms and conditions apply) for a new car. Get Flexi EMI/Lakh (terms and conditions apply) starting at Rs. 799. Get a loan up to 100% of the on-road price, with a tenure of up to eight years. You can also get accessory funding and a customised repayment option. You can also apply for a used car loan with an interest rate starting from 10.5% (terms and conditions apply). With a tenure of up to five years, you can also avail top-up loan on your existing car loan; with max refinance of up to 140% of vehicle valuation. A special offer also includes no foreclosure and part prepayment charges (terms and conditions apply). The repayment scheme can be customised per your needs. This offer is only applicable on selected vehicles and for a short time.
Last words
With the festive season around the corner, many of us might consider making some big purchases. Make the most of the festive offers to bring home your dream car. If you have a good CIBIL score, you won’t have to deal with very high interest rates. Most banks increase the rates only if your credit history has been rocky.
What are you waiting for? Go and get that car loan!
