Top 5 Banks Promising the Cheapest Interest Rates on Car Loans

Investment

oi-Vipul Das

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Because buying a car is such a big investment, many of us are interested in applying for a car loan to fulfill our driving dreams, especially because these financing options often have better interest rates than an unsecured personal loan. Keep in mind that lenders often give loans of up to 80-90% of the vehicle’s on-road price. In particular, auto loans are often offered for up to seven years. Although represented as a secured loan, the lender determines the appropriate interest rates for the car loan based on the borrower’s credit rating and other factors. If you are looking to buy a new car in the next few days, we have developed a set of 10 government and private banks that are now offering some of the lowest new car loan interest rates for a loan amount of Rs 10 lakh in the country.

Top 5 Public Sector Banks With Lowest Interest Rates On Auto Loans

Here are the top 5 government banks in the country currently promising the lowest interest rates on car loans.

Banks Interest rate
Bank of Punjab and Sindh 7.00%
central bank of india 7.25%
Bank of Baroda 7.25%
Canara Bank 7.30%
National Bank of Punjab 7.30%
Source: Bank websites

Top 5 Private Sector Banks Offering Cheapest Rates on Auto Loans

Below are the top five private sector banks in the country currently offering the best interest rates for car loans.

Banks Interest rate
IDBI Bank 7.50%
ICICI Bank 7.90%
Karur Vysia Bank 7.90%
HDFC Bank 7.95%
Dhanlaxmi Bank 8.10%
Source: Bank websites

To note

A processing fee is also levied, which is normally determined by the lender’s regulations. Nevertheless, a few banks offer car loans to existing customers at reduced rates. Many banks now offer pre-approved car loans to a limited group of customers, which may include lower interest rates and faster loan disbursement. Therefore, it’s always important to compare current car loan offers from multiple lenders to discover a rate that best suits your financial needs. Please keep in mind that we have only assessed the lowest interest rate quoted by each lender; the interest rate that applies to you may be higher depending on your loan amount, credit score, occupation or any other condition of your preferred bank.

Article first published: Thursday, May 27, 2021, 4:16 p.m. [IST]

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