After months of setbacks due to the Covid-19 pandemic, the Indian automotive industry has started embarking on a recovery path ahead of the much-anticipated festive season. Top carmakers, including Maruti Suzuki, Hyundai and Tata Motors, saw their year-on-year domestic sales grow by 37%, 26% and 101%, respectively, in July this year.
These trends are testament to the fact that many people are prioritizing buying a car to minimize public or shared transportation and avoid getting infected by the feared virus. Buying a car requires a lot of money; however, many prefer using a car loan to finance their purchase especially when car loans are available at competitive interest rates that are usually slightly lower than personal loan rates.
If you’re planning to take a car loan, do note that most lenders would finance up to 80%-90% of the car’s on-road price (meaning, the balance would have to be borne out of pocket) for tenures up to seven years, while some banks could lend up to 100% of the car’s valuation cost subject to terms and conditions. That being said, the car loan interest rate applicable to you would be determined by the lender based on your age, income, credit score, loan amount, etc, according to BankBazaar.
As such, it makes sense to compare car loan offers across banks and NBFCs to find the deal that best meets your financing requirements according to your eligibility. Do note, many lenders offer concessional car loan deals for their existing home loan borrowers. Also, some banks could offer pre-approved car loan deals to their selected customers with attractive rates that could be disbursed quickly.
To help you make informed decisions, we have compiled a list of 18 government and private banks — including SBI, HDFC Bank, Axis Bank and ICICI Bank — that are currently offering car loans starting at under 8% p.a. We have also provided the indicative EMIs for Rs 7 lakh loan for a tenure of 5 years for each of the banks mentioned in the table below.
Do note, we have only considered the lowest-advertised interest rate for each lender, and the interest rate applicable to you could be higher depending on your loan amount, credit score, type of occupation, or any other terms and conditions of your chosen lender. Also, you may need to meet additional eligibility requirements to enjoy the lowest-advertised car loan interest rate of certain banks.
18 Top Banks Offering Car Loans Starting at under 8% p.a. Right Now
Disclaimer: Data collected from respective bank websites on 24 Aug 2021. The lowest advertised interest rate offered by the banks irrespective of the loan amount is shown in the table. The EMIs have been calculated on the basis of the interest rate mentioned in the table for a Rs 7-lakh loan with a tenure of 5 years (processing fee and other charges are assumed to be zero for EMI calculation). The interest rates mentioned in the table are indicative and may vary depending on the bank’s T&C. **Including rebate for government employees ^ HDFC Bank rack interest rate.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.