BEST BANKS FOR CAR LOAN IN INDIA
Owning a car is no longer just a luxury; it’s a symbol of convenience, freedom, and aspirations fulfilled. If you’re ready to cruise the roads in your dream car, acquiring a car loan can be a smart financial move. In India, numerous banks offer attractive car loan options tailored to your needs. Below are highlighted some of the best banks for car loans, thereby helping you make an informed choice.
7 BEST BANKS FOR CAR LOAN
| SR.NO. | BANKS | INTEREST RATE (per annum) | PROCESSING FEE |
| 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 21st August 2023
The figures in the table are subject to potential alterations. Before initiating your loan application, verify these details with the relevant bank.)
MORE ABOUT THESE TOP BANKS
1. AXIS BANK
With an extensive branch network and user-friendly online platform, Axis Bank stands out for vehicle loans. Favorable interest rates, in addition to simple processing and flexible repayment options, ensure borrowing ease. It offers up to 100% financing on the on-road price of new and green cars. Pre-approved car loans benefit existing customers by providing “in-principle” loan approval in advance, reducing car finance concerns.
2. ICICI BANK
ICICI Bank, a respected Indian bank, offers enticing vehicle loan options. With appealing interest rates, alongside variable repayment terms and hassle-free processing, they cater to car financing needs. Timely approvals and payouts consequently simplify the process. Pre-approved car loans for existing clients, thus, streamline borrowing. ICICI Bank’s reliability and customer focus, therefore, make it a favored choice for vehicle loans. They offer 100% financing for new car models on-road price.
3. STATE BANK OF INDIA
State Bank of India (SBI), a leading Indian bank, offers alluring auto loan options. SBI ensures flexibility with up to 7-year terms and fair interest rates. Swift approvals, streamlined documentation, and additionally, low processing fees enhance affordability. With a vast branch network, thus, SBI offers accessible vehicle financing solutions. They lend up to 90% of the “on-road price” for new and green vehicles. Existing home loan borrowers with good repayment records benefit from reduced rates. Moreover, depositors with fixed deposits can also secure car loans with SBI as collateral.
4. HDFC BANK
HDFC Bank, a key player in India’s banking, offers attractive auto loans. Affordable rates make them a preferred choice. Varied repayment options suit borrowers’ needs. HDFC ensures swift loan processing and disbursement, thereby facilitating quick access to funds. Its customer-centric approach and wide reach, consequently, make it a preferred vehicle loan choice. They offer 100% financing for new car models on-road price.
5. BANK OF BARODA
Bank of Baroda, a reputable Indian bank, provides diverse car loan choices within budget. With cost-effective options, borrowers can opt for simplicity. The bank offers a straightforward application process and various repayment terms. Its extensive branch network ensures accessibility. Trusted for customer focus and flexible terms, Bank of Baroda is a reliable auto loan choice. They lend up to 90% of a new car’s on-road price. Notably, there are no fees for car loan pre-closure.
6. KOTAK MAHINDRA BANK
Kotak Mahindra Bank, a reputable Indian financial institution, offers cost-effective vehicle loan options. They provide reasonable financing choices with low interest rates. Varied repayment terms and tailored structures, thereby, ensure borrower convenience. With minimal documentation and swift approvals, their application process is straightforward. Value-added services like insurance and extended warranties enhance the offer. Kotak Mahindra Bank is favored for its customer-centric approach and flexible terms. They offer car loans up to 90% of the on-road price of commercial vehicles.
7. UNION BANK OF INDIA
Union Bank of India, a leading public sector bank, offers attractive auto loans with low rates. They ensure ease with straightforward processing and flexible repayments. Swift disbursement as well as pre-approved auto loans benefit qualified customers. With a wide branch network and a customer-oriented approach, it’s a favored vehicle loan choice. They offer up to 90% financing for new and green cars’ on-road prices. Remarkably, just a 10% margin is required for new 4-wheeler car purchases.
CONCLUSION
When choosing a bank for your car loan, consider 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.
To know more about car loans also read – HOW TO GET A CAR LOAN IN INDIA?
