Car Loan Interest Rates of All Banks
Last Updated : May 5, 2017, 3:52 p.m.
Do you fantasize about owning a high-end vehicle? Want to improve your standard of living but don’t know where to start? Everyone wants an automobile that gives them a sense of self-assurance and makes a fashion statement. Many of you want to buy the car of your dreams, but rising expenses and other financial obligations are preventing you from realizing your goal. You can, however, get the car of your dreams with the help of the best car loans. Unfortunately, the best all banks car loan interest rates are another significant issue to consider after making the decision to take out a car loan. The car loan interest rates, on the other hand, can be either fixed or variable. The rate of interest on a fixed loan remains constant during the term of the loan. In the case of a floating rate, the lending rate fluctuates in response to changes in the lender’s Marginal Cost of Lending Rate (MCLR) or the base rate.
Car Loan Interest Rates All Banks 2024
Check and compare the car loan interest rates of all the banks in India in the table below.
| Banks | Interest Rates |
|---|---|
| Axis Bank | 7.45% - 14.50% |
| Bank of Baroda | 7% onwards |
| Bank of India | 6.85% onwards |
| Bank of Maharashtra | 6.40% onwards |
| Canara Bank | 7.30% Onwards |
| Central Bank of India | 7.25% - 7.70% |
| Federal Bank | 7.65% Onwards |
| HDFC Bank | 7.95% - 8.30% |
| ICICI Bank | 7.90% Onwards |
| IDBI Bank | 7.50% Onwards |
| Jammu & Kashmir Bank | 7.85% Onwards |
| Karnataka Bank | 7.50% Onwards |
| Karur Vysya Bank | 7.80% Onwards |
| Lakshmi Vilas Bank | 7.05% Onwards |
| Nainital Bank | 9.20% Onwards |
| Punjab & Sind Bank | 7.10% - 7.45% |
| Punjab National Bank | 6.50% Onwards |
| RBL Bank | 12.00% - 14.00% |
| SBI | 7.20% - 7.90% |
| UCO Bank | 7.25% Onwards |
| Yes Bank | 9.25% Onwards |
| Union Bank | 8.65% - 11% |
| Indian Bank | 8.05% Onwards |
FAQs
1. Which bank offers the best car loans?
The criteria for choosing an appropriate car loan for you is not the best bank, but the cost and the type of car you are wanting to buy. The car loans and their eligibility vary according to the price and the category of the car you want to buy. It also depends on the key USP (Unique Selling Point) the borrower is looking for in the lender.
2. Is it possible to get 100% funding on a car loan?
The amount of a car loan that an applicant can borrow depends on the lender to lender. Most lenders offer up to 90% financing of the on-road price of the car. However, there are some lenders also that are providing 100% financing of the car loan.
3. What are the charges of prepaying a car loan?
Car loan prepayment charges vary from lender to lender. You need to check and read all the terms and conditions regarding the loan prepayment as some of the lenders charge heavy prepayment fines.
4. What is the repayment period for a car loan?
The car loan repayment tenure usually ranges from 1 to 7 years. However, it depends on your lender’s terms and conditions.
5. What credit score do I need to borrow a car loan?
A credit score of above 750 is considered to avail any loan including the car loan. If your credit history is bad, there are chances of your application being rejected. Therefore, maintain your CIBIL score if you want to opt for a car loan.
6. How much down payment amount should I make to borrow a car loan?
There are no hard and fast rules on how much down payment amount you should make. It totally depends on the applicant and his budget planning. Having said that, it is ideal to make the maximum down payment you can make to avail a loan with lower interest rates. This is because the more down payment you will make, the lesser will be your required car loan amount and the lesser will be your car loan interest rates.
7. Can I negotiate the car loan interest rates from my lender?
Yes, of course you can. It depends on certain factors such as your CIBIL score, your existing relationship with your lender, your employment status, your income, and other eligibility factors. The lender will decide on the basis of the aforementioned factors whether he wants to negotiate your car loan interest rates or not.
8. What type of rate of interest – Fixed or Floating, should I prefer while borrowing a car loan?
If you opt for a car loan with fixed interest rates, your EMIs would be fixed throughout the loan tenure. However, if you choose a car loan with floating interest rates, your interest rates, and the monthly instalments would alter according to the market price. It is ideal to choose a car loan with fixed interest rates to avoid taking any risks and shaking up your budge
9. Is the interest rate on a car loan affected by the type of vehicle?
No, the car loan interest rate does not directly depend on the type of vehicle, but it depends on the price of your car. If you choose a luxury car, the car loan amount will be higher and so will be your interest rates, depending upon your lender.
10. How can I get a car loan with lower car loan interest rates?
If you have a strong relationship with your lender, a higher CIBIL score, make a higher down payment, have a strong employment status, then you have higher chances of getting a car loan with lower interest rates. It all depends on your eligibility criteria and your lender’s requirements.
11. What is Vehicle Loan?
A vehicle loan is a secured loan in which the borrower buys a new vehicle and uses itself as collateral to finance the purchase. In a vehicle loan, lenders decide your rate of interest on the basis of the cost of your vehicle and your desired loan amount.
12. What are the Vehicle Loan Interest Rates?
Although the vehicle loan interest rates vary from lender to lender, it usually starts from 7% with a repayment tenure of up to 8 years.