Buy a new car? Find out the latest interest rates on loans offered by the best banks
Buying a new car is definitely one of the greatest joys in the world. And buying a car would probably be the second most expensive purchase a person will make in their lifetime right after buying a house. There are different types of auto loans available in the market today. However, while opting for a loan, borrowers generally prefer variable rates considering the lower interest rates.
As with any other loan, a key factor to consider when taking out a car loan is the interest rate offered on the loan.
Those looking to take out a car loan should look for the lender who is willing to give you the right amount of loan at the lowest interest rate. Here are the auto loan interest rates from State Bank of India (SBI), ICICI Bank, HDFC Bank and Bank of Baroda.
SBI car loan
According to the SBI website, to qualify for an SBI car loan, you must be a person between the ages of 21 and 67. For regular employees, the maximum sanctioned amount will be 48 times the net monthly income. The minimum annual net income of the applicant or co-applicant, if any, must be at least Rs 3,00,000, according to the SBI website.
For professionals, self-employed and businessmen, the maximum sanctioned amount will be 4 times the net profit or gross taxable income according to the ITR after adding the amortization and repayment of all existing loans. For persons engaged in agriculture and related activities, the maximum amount will be 3 times net annual income.
New car loans with a fixed interest rate are available from ICICI Bank. The interest rate on a fixed rate car loan will remain constant for the life of the loan. The interest rate varies between 7.50 and 9% depending on seniority and other factors. Interest rates on new cars are determined by factors such as car segment, CIBIL score, customer relationship, loan term, etc., according to the bank’s website ICICI.
Bank of Baroda
Bank of Baroda offers up to 90% financing, according to its website. The interest rate varies between 7% and 9.75%. Customers who do not take out credit insurance will be charged a risk premium of 0.05%, in accordance with current standards.
Within six months of receiving the car loan, no foreclosures are allowed for HDFC Bank car loan customers. According to the HDFC Bank website, pre-closings within one year of the 7th EMI would be charged at 6% of the outstanding principal. Pre-closing within 13 to 24 months of the first EMI, 5% of the outstanding principal and 3% of the outstanding principal for pre-closings after 24 months from the first EMI.