Which Bank Charges the Least on Car Loan?
Last Updated : April 18, 2016, 9:04 a.m.
Tastes and preferences with regards to cars are changing quite rapidly with traditional cars increasingly making way for Sports Utility Vehicles(SUVs) and other stylish models. Not only the tastes and preferences, even the lenders are changing their car loan schemes to appeal to a wider section of the population looking to own the vehicle. When you decide to opt for a car loan, you first try to pick the lender that charge you the least in the form of interest rate, processing fee, etc.
Yes, with the help of comparing the lenders on these parameters actually allows you to grab the best car loan deal. You should keep in mind that the interest rate should be low, tenures should be flexible enough and the processing fee should also be minimal. And, all this and much more can only be possible, if you compare the different car loan lenders. However, for your reference, we have decided to compare the leaders in India’s car financing space.
HDFC Bank
HDFC Bank, the leader in the car loan segment, offers lending to all the eligible citizens of India to purchase the car. The bank finances up to 90%-100% of the road price of the car with repayment tenure of 7 years. You can get a car loan of up to 6 times your annual income from HDFC Bank. Much unlike the public sector banks and other lenders, HDFC Bank approves car loan in just 30 minutes. This was all about the basic feature of the bank’s car loan. Now get into the charges of HDFC Bank.
ICICI Bank
ICICI bank, which ranks among the top ten car financing companies in India, extends loan to salaried professionals, self-employed individuals, partnership firms, companies, etc. Get loan up to 90% of the ex-showroom price of the car from ICICI Bank with repayment period of 7 years. After discussing the basic features, now turn to the charges on car loan at ICICI Bank.
| HDFC Bank Car Loan Charges | ICICI Bank Car Loan Charges |
|---|---|
| Interest is 10%-12.5% | Car loans of up to 90% of ex-showroom price of vehicle |
| Processing fee between ₹ 2,825-5,150 | Interest rate of 10.75%-12.75% |
| 5% on the part payment amount in case part prepayment is within 13-24 months from 1st EMI | Processing fees are charged at 2% of the loan amount or ₹ 6,000 whichever is lower |
| 3% on the part payment amount in case part prepayment after 24 months from 1st EMI | Part prepayment allowed only twice during the loan tenure and once in a year |
| Late payment penalty of 2% per month | Part prepayment not allowed for cases with loan period up to 6 months |
| Foreclosure charges:- No foreclosure allowed within 6 months from date of availing the car loan. 6% of principal outstanding for preclosures within 1 year from 7th EMI. 5% of principal outstanding for preclosures within 13-24 months from 1st EMI. 3% of principal outstanding for preclosures post 24 months from 1st EMI | 6% of loan amount for cases with period of 7 to 12 months |
| Cheque/ECS swapping charges of ₹ 500 | 5% of loan amount for cases with period of 13 to 24 months |
| Cheque/ SI/ ECS Return Charges of ₹ 550 | 3% of loan amount for cases with period more than 24 months |
| Collateral charges of ₹ 300 | Minimum prepayment amount should be equivalent to one EMI |
| CIBIL charges (only on request) of ₹ 50 | Maximum prepayment amount should be 25% of principal outstanding |
| Duplicate no due certificate/NOC charges of ₹ 500 | CIBIL report charges of ₹ 50 |
| Registration Certificate Collection Charges of ₹ 350 | |
| Documentation charges of ₹ 350 | |
| Late payment penalty of 2% per month on outstanding amount | |
| Swap charges of ₹ 500 per transaction | |
| Cheque bounce charges of ₹ 500 per transaction | |
| Duplicate No Objection Certificate (NOC)/No Due Certificate (NDC) charges of ₹ 500 |