- Date : 29/07/2022
- Read: 3 mins
Cheapest car loan interest rates
If you have finalized your dream car and are planning to take a car loan, you have come to the right place. Here we discuss the banks offering the cheapest interest rate on car loans. With the cheapest interest rate on the car loan, you can save on the interest cost and reduce your EMI bill.
After the RBI increased the repo rates by 90 bps in the first quarter of the current financial year, the interest rates offered by the banks increased. Car loan interest rates have increased as well. But some banks are still offering cheap interest rates to make it affordable for you to get your dream car. Check out the latest interest rates below.
Banks offering cheapest car loans
State Bank of India offers loans of up to 90% of the car's ex-showroom price. The tenure offered is up to a maximum of seven years. You can purchase SUVs, MUVs, Hatchbacks, sedans, etc. The car loan offered by the SBI ranges from 7.65% to 8.35%. Using the loyalty score, you can get a discount of 0.05%, making the loans start from 7.6%.
PNB is offering car loans starting from 7.65%. The loans are linked to the repo rate. The repo-linked lending rate for PNB is 4.9% + 2.5% (Repo rate plus markup). The car loans are offered at a markup of 0.25% to the RLLR. The total interest rate comes to 7.65%, and the loans are linked to the repo rate.
ICICI is offering car loans starting from 7.85%. The loans are based on the CIBIL score and the existing customer relationship. For lower tenures, the interest rates offered by the bank are higher. The bank offers loans of up to 100% of the ex-showroom price.
If you have finalized your dream car, you can choose the dream car at the low-interest rates offered by various banks. A lower interest rate will reduce your EMI burden and increase the affordability of the car. ICICI Bank, SBI and PNB offer cheap car loans to help you purchase your dream car. You can choose from repo-linked loans to fixed-rate loans. Also, the RBI is expected to increase the interest rates in subsequent months this year. You can lock in the interest rates if you take a fixed-rate loan. You can get financing of up to 100% of the car value and tenures of up to 7 years to help you finance your dream car.
Confused about availing car loan from a Bank or a NBFC? Read this article Car loan from Bank vs NBFC.