Owning a car has become a necessity in India. The days of a family of four travelling on a single bike or scooter are long gone. The middle-class families in India now prefer the comfort and safety of four-wheelers. However, buying a car is difficult for a lot of families, especially if there is only one source of monthly income. Thus, such families apply for car loans to but their dream four-wheeler. Loan for cars has become an increasingly popular way of purchasing cars among the populace. As a result, banks, lenders, and NBFCs in India are competing with each other to offer the best car loan interest rates and terms to people. However, with an abundance of choices, it may become difficult for you to identify which bank offers the best interest rates, EMIs, etc. Since the suitability of the loan would depend on your circumstances, here is a list of the best banks for car loan.
Banks for Car Loan
HDFC Bank Car Loan
HDFC Bank claims that they can approve loan within 30 minutes followed by quick disbursals. They provide two types of car loans, loan on new cars and loan on used cars. Furthermore, HDFC also offers the option of balloon EMIs. Noteworthy features of HDFC car loan are:
| Interest Rate | Minimum: 8.40% Maximum: 15.62% |
| Loan Term | Up to 7 years |
| Max Loan Amount Offered | 100% of ex-showroom price of the car |
| Eligibility | Minimum age of 21 years and maximum age of 60 while the minimum yearly income of the individual should be INR 3 Lakh |
SBI Car Loan
SBI is the country’s largest lender; as a result it offers numerous types of loans for its customers. SBI offers special features such as relaxed eligibility for car loan to government employees. Noteworthy features of SBI car loan are:
| Interest Rate | Minimum 9.25% |
| Loan Term | Up to 7 years |
| Max Loan Amount Offered | 90% of the car’s on-road price |
| Eligibility | Minimum age of 21 years and maximum age of 65 while the minimum yearly income of the individual should be INR 2.5 Lakh |
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PNB Car Loan
PNB is one of the largest public sector bank in the nation. The bank offers one of the lowest car loan interest rates in addition to a very relaxed and basic eligibility criterion. Noteworthy, features of PNB car loan are:
| Interest Rate | One year MCLR + Fixed Rate (minimum 0.60% & maximum 1.05%) or MCLR + Floating interest (depends on credit score of applicant) |
| Loan Term | Up to 7 years |
| Max Loan Amount Offered | 85% of the car’s on-road price |
| Eligibility | Minimum monthly income of the individual should be INR 20,000 |
Union Bank of India Car Loan
One of the best features of availing car loan from Union Bank of India is their flexible repayment plan. Additionally, the bank also offers loans for purchase of used cars. Noteworthy, features of Union Bank of India car loan are:
| Interest Rate | 9.15% Floating |
| Loan Term | Up to 7 years |
| Max Loan Amount Offered | 85% of the car’s on-road price |
| Eligibility | Maximum age of 70 while the minimum monthly income of the individual should be INR 25,000 |
Central Bank of India Car Loan
Central Bank of India is one of the oldest commercial banks in the nation. The terms of car loan offered by the bank are flexible to suit applicants of every ilk. Noteworthy, features of Central Bank of India car loan are:
| Interest Rate | One year MCLR + 0.40% Floating |
| Loan Term | Up to 7 years |
| Max Loan Amount Offered | 90% of the car’s on-road price |
| Eligibility | Minimum age of 18 years and maximum age of 65 while the minimum yearly income of the individual should be INR 2.4 Lakh |
Oriental Bank of Commerce Car Loan
Oriental Bank of Commerce offers a range of flexible terms in addition to attractive offers to entice customers. The unique feature about the loan is that that the bank charges no processing fee. Noteworthy, features of Oriental Bank of Commerce car loan are:
| Interest Rate | One year MCLR + Floating rate (0.50% for males and 0.40% for females) |
| Loan Term | Up to 7 years |
| Loan Amount Offered | 85% of the car’s on-road price |
| Eligibility | Minimum monthly income of the individual should be INR 30,000 |
Bank of Baroda
Bank of Baroda is the third largest bank of the nation. The loan for cars offered by the bank is carefully crafted to ensure that it meets the requirements of the customers. Noteworthy, features of PNB car loan are:
| Interest Rate | One year MCLR + Floating rate (approx. total 8.80% floating) |
| Loan Term | Up to 7 years |
| Loan Amount Offered | 90% of the car’s on-road price |
| Eligibility | Minimum age of 18 years and maximum age of 65 |
Get Your Dream Car Now
The loans from the banks mentioned above offer attractive car loan interest rates that make the process of buying a car easier. However, one of the flaws of availing vehicle loans from banks is the lengthy and tedious documentation process. There is no need to fret, you can avail a personal loan to fund the purchase of your dream car. PaySense offers you instant hassle-free personal loans that can be used to buy a new or used vehicle. So, what are you waiting for, check your eligibility for car loan and apply!
