Buying a car is no longer difficult. You can just walk into a bank with your documents and apply for a loan. Most banks even allow you to apply for car loan online. Almost every bank in India offers loans for cars, but you need to make an informed financial decision before taking on the loan. You should be aware of the loan tenure, finance and interest rates charged by different lenders before taking on the loan. Here are 2019’s top 5 banks to consider for loans for cars.
Union Bank of India
Union Bank of India offers loans for cars to individuals between the ages of 18 to 70 years. The bank offers one of the best car loan interest rate of 8.70% with up to 85% financing of the on-road price of the vehicle. Moreover, the bank has waived off loan processing fees until 31/03/2019, to attract customers.
Bank of Baroda
One of the most illustrious banks in the country, Bank of Baroda has made it possible for you to become a car owner. The bank charges the lowest car loan interest rate of starting with a base rate of only 8.60% + 0.25% on base rate. Individuals between the ages of 21 and 70 (at the end of repayment tenure) are eligible for this loan. Also, Bank of Baroda offers the highest loan amount i.e. ₹1 Crore and up-to 90% of the on-road price of the car.
HDFC Bank
The most popular bank in the private sector of India, HDFC Bank is also a preferred lender for several borrowers. The bank charges an interest rate of 9%-10.50% on loans for cars. The USP of the bank is its loan approval time and auto loans are approved within 30 minutes with minimal documentation and paperwork. It also offers up-to 100% finance on the ex-showroom price of the car.
Central Bank of India
A popular bank in the public sector, the Central Bank of India also provides loans for cars by charging lower rates of interest. You would typically be paying an interest rate of 8.70% if you took a loan to purchase a car from this bank. The bank provides the loan to individuals between the ages of 18 to 65 and offers a maximum loan amount of ₹20 lakhs or 90% finance on the on-road price of the vehicle.
State Bank of India
India’s most popular public sector bank, the State Bank of India or SBI and its many affiliates also offer car loans at low interest rates. Regarded as India’s largest lender, SBI charges an annual interest rate of 9.25% (floating rate) on car loans. It also does not levy any processing charges or pre-closure charges and provides up to 85% finance on the on-road price of the car. You need to be between the ages of 21 to 60 years to be eligible for this loan.
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