As the festive season kicks in, many people in India start planning big purchases, like buying a new car. This year, several banks are offering exciting car loan deals with low interest rates, attractive EMI options, and even zero processing fees to make it easier for you to own your dream car.
We’ve gathered some key information about the best car loan offers from top banks to help you make an informed decision.
Car Loan Essentials: What You Should Know
Before diving into the bank-wise details, it’s important to understand some basics about car loans:
- Loan Amount: In India, most people apply for car loans ranging from Rs. 3 lakh to Rs. 5 lakh, with the rest of the amount covered by down payments from savings.
- Interest Rates: Banks offer different interest rates, and these can depend on various factors like your credit score and relationship with the bank.
- EMI (Equated Monthly Installment): This is the monthly amount you’ll repay over the loan tenure, which is usually 5 years for car loans.
- Processing Fee: Some banks charge a fee to process your loan, which can vary from one bank to another. However, many banks offer zero processing fees during the festive season.
Bank-Wise Car Loan Offers for 2024
Here’s a detailed look at the best car loan offers from 18 different banks for loans up to Rs. 5 lakh with a 5-year tenure:
1. UCO Bank
- Interest Rate: 8.45% – 10.55%
- Monthly EMI: Rs. 10,246 – Rs. 10,759
- Processing Fee: Nil
2. Union Bank of India
- Interest Rate: 8.70% – 10.45%
- Monthly EMI: Rs. 10,307 – Rs. 10,735
- Processing Fee: Rs. 1,000
3. Canara Bank
- Interest Rate: 8.70% – 12.70%
- Monthly EMI: Rs. 10,307 – Rs. 11,300
- Processing Fee: Nil
4. Bank of Maharashtra
- Interest Rate: 8.70% – 13.00%
- Monthly EMI: Rs. 10,307 – Rs. 11,377
- Processing Fee: 0.25% (Rs. 1,000 – Rs. 15,000)
5. Punjab National Bank (PNB)
- Interest Rate: 8.75% – 10.60%
- Monthly EMI: Rs. 10,319 – Rs. 10,772
- Processing Fee: 0.25% (Rs. 1,000 – Rs. 1,500)
6. Bank of India
- Interest Rate: 8.85% – 12.10%
- Monthly EMI: Rs. 10,343 – Rs. 11,148
- Processing Fee: 0.25% (Rs. 1,000 – Rs. 5,000)
7. State Bank of India (SBI)
- Interest Rate: 9.05% – 10.10%
- Monthly EMI: Rs. 10,391 – Rs. 10,648
- Processing Fee: Nil
8. Bank of Baroda
- Interest Rate: 8.95% – 12.70%
- Monthly EMI: Rs. 10,367 – Rs. 11,300
- Processing Fee: Up to Rs. 2,000
9. IDBI Bank
- Interest Rate: 8.80% – 9.65%
- Monthly EMI: Rs. 10,331 – Rs. 10,294
- Processing Fee: Rs. 2,500
10. Indian Overseas Bank
- Interest Rate: 8.85% – 12.00%
- Monthly EMI: Rs. 10,343 – Rs. 11,122
- Processing Fee: 0.50% (Rs. 500 – Rs. 5,000)
11. ICICI Bank
- Interest Rate: 9.10% onwards
- Monthly EMI: Rs. 10,403 onwards
- Processing Fee: Up to 2%
12. HDFC Bank
- Interest Rate: 9.20% onwards
- Monthly EMI: Rs. 10,428 onwards
- Processing Fee: Up to 1% (Rs. 3,500 – Rs. 9,000)
13. Karnataka Bank
- Interest Rate: 8.88% – 11.37%
- Monthly EMI: Rs. 10,350 – Rs. 10,964
- Processing Fee: 0.60% (Rs. 3,000 – Rs. 11,000)
14. Federal Bank
- Interest Rate: 8.85% onwards
- Monthly EMI: Rs. 10,343 onwards
- Processing Fee: Rs. 2,000 – Rs. 4,500
15. Punjab & Sind Bank
- Interest Rate: 8.85% – 10.25%
- Monthly EMI: Rs. 10,343 – Rs. 10,685
- Processing Fee: 0.25% (Rs. 1,000 – Rs. 15,000)
16. South Indian Bank
- Interest Rate: 8.75% onwards
- Monthly EMI: Rs. 10,319 onwards
- Processing Fee: 0.75% (Max: Rs. 10,000)
17. IDFC First Bank
- Interest Rate: 9.60% onwards
- Monthly EMI: Rs. 10,525 onwards
- Processing Fee: Up to Rs. 10,000
18. City Union Bank
- Interest Rate: 9.90% – 11.50%
- Monthly EMI: Rs. 10,599 – Rs. 10,996
- Processing Fee: 1.25% (Min: Rs. 1,000)
Credit Score Matters for Car Loan Approval
When applying for a car loan, your credit score plays a vital role. Most banks offer better interest rates to customers with higher credit scores (usually above 750). A good score indicates that you’re a reliable borrower, which reduces the risk for the bank.
Additional Discounts and Offers
- Existing Loan Customers: If you already have a home loan or another type of loan with the bank, you could be eligible for additional discounts on your car loan. For instance, some banks offer a 0.25% interest concession to their home loan customers.
- Salary Account Holders: If you have a salary account with the bank, you might also qualify for a lower interest rate on your car loan.
- Processing Fee Waivers: During the festive season, some banks, like Canara Bank, are offering zero processing fees on car loans, making it easier for customers to apply without worrying about upfront costs.
EMI and Interest Rate Calculations
The EMI for a car loan depends on the interest rate and tenure of the loan. For a Rs. 5 lakh loan with a 5-year repayment period, the EMI ranges from Rs. 10,246 to Rs. 11,377, depending on the interest rate offered by the bank.
For example:
- At an interest rate of 8.45%, your EMI will be around Rs. 10,246 per month.
- At an interest rate of 12.70%, your EMI could go up to Rs. 11,300 per month.
This flexibility allows you to choose the loan that best suits your financial situation.
Best Banks for Car Loans During Festive Season 2024
With various banks offering competitive car loan rates, it’s important to compare offers based on:
- Interest Rate
- Processing Fees
- Additional Offers like fee waivers and discounts for existing customers
During the festive season, the best car loans are typically found at public sector banks like UCO Bank, Union Bank of India, and State Bank of India, as they offer lower interest rates and minimal processing fees.
Use this festive season to your advantage and get the best car loan deal that fits your budget.
