Owning a car is no longer just a luxury; instead, it’s a symbol of convenience, freedom, and aspirations fulfilled. If you’re ready to cruise the roads in your dream car, securing a car loan can be a smart financial move. Moreover, in India, numerous banks offer attractive car loan options tailored to your needs.
Below are some of the best banks for car loans, helping you make an informed choice –
Sr.No. |
Bank |
Interest Rate (per annum) |
Processing Fees |
| 1 | Axis Bank | 9.10% – 13.80% | Rs. 3500 – Rs. 12000 |
| 2 | ICICI Bank | 8.85% onwards | Rs. 999 to Rs. 8,500 + applicable GST |
| 3 | State Bank of India | 8.80% – 9.70% | 0.25% of Loan Amount + GST |
| 4 | HDFC Bank | 8.30% onwards | 0.50% of the Loan Amount |
| 5 | Bank of Baroda | 8.85% – 12.15% | Rs. 1500 + GST (for loan amount up to Rs. 10 lakh) Rs. 2000 + GST (for loan amount above Rs. 10 lakh) |
| 6 | Kotak Mahindra Bank | 7.70% – 25% | 2% of the Loan Amount |
| 7 | Union Bank of India | 8.75% onwards | 1% of the Loan Amount |
(Interest Rates as of August 21, 2023
The numbers in the table may undergo changes. Please confirm these details with the respective bank before starting your loan application.)
MORE ABOUT THESE TOP BANKS
1. AXIS BANK
– Prominent Indian bank with attractive vehicle loan choices.
– Favorable interest rates, simple processing, and flexible repayment options.
– Doorstep processing for paperwork convenience.
– Up to 100% financing on the on-road price of new and green cars.
– Pre-approved car loans for existing customers.
2. ICICI BANK
– Respected Indian bank with enticing vehicle loan options.
– Appealing interest rates, variable repayment terms, and hassle-free processing.
– Timely approvals and payouts simplify the process.
– Pre-approved car loans for existing clients.
– Offers 100% financing for new car models on-road price.
3. STATE BANK OF INDIA
– Leading Indian bank with alluring auto loan options.
– Up to 7-year terms and fair interest rates for flexibility.
– Swift approvals, streamlined documentation, and low processing fees.
– Lends up to 90% of the “on-road price” for new and green vehicles.
– Reduced rates for existing home loan borrowers with good repayment records.
4. HDFC BANK
– Key player with attractive auto loans.
– Affordable rates and varied repayment options.
– Swift loan processing and disbursement.
– Customer-centric approach with 100% financing for new car models on-road price.
5. BANK OF BARODA
– Reputable bank with diverse car loan choices.
– Cost-effective options with a straightforward application process.
– Various repayment terms and no fees for car loan pre-closure.
– Trusted for customer focus and flexibility, lending up to 90% of a new car’s on-road price.
6. KOTAK MAHINDRA BANK
– Reputable financial institution offering cost-effective vehicle loan options.
– Reasonable financing choices with low interest rates.
– Varied repayment terms and tailored structures for borrower convenience.
– Minimal documentation and swift approvals.
– Offers car loans up to 90% of the on-road price of commercial vehicles.
7. UNION BANK OF INDIA
– Leading public sector bank with attractive auto loans and low rates.
– Straightforward processing and flexible repayments.
– Swift disbursement and pre-approved auto loans.
– Wide branch network and customer-oriented approach.
– Offers up to 90% financing for new and green cars’ on-road prices.
CONCLUSION
When choosing a bank for your car loan, consider crucial factors like interest rates, repayment terms, processing speed, and additional services. By comparing the offerings of these top banks, you can make an informed decision that suits your financial needs and preferences. Embark on your car financing journey with confidence, knowing you’ve chosen the right partner for your dream car.
For more information on Car Loan, read – SECURING CAR LOAN IN INDIA