Best Car Loan Providers in India? There was a time when owning a car was a luxury and thus could be afforded by some rich people only.
However, having a vehicle with the availability of secure financing options is not only a dream but a requirement that most of us can easily afford.
Whether you are planning to buy a new car or an old car, you can finance your car by taking a car loan at cheap car loan rates. Know about Which is Best Gold Loan Interest Rates In India
Car loan rates vary according to the value of the car, the amount you borrow, and the repaying capacity of the borrower. You can get up to 100% of the car’s ex-showroom price.
Here are some Best Car Loan Providers in India as following.
Best Car Loan Providers in India
1. SBI Bank Car Loan
The SBI financed up to 90% of the road price for brand new passenger cars including MUV and SUV.
The benefit of the SBI bank car loan is a 0.20% processing charge. The maximum tenure of a car loan is 7 years and the interest is calculated on the daily reducing balance.
SBI Bank Car Loan Eligibility
| Borrower | Salaried employee | Professionals, self-employed | Persons engaged in agriculture |
|---|---|---|---|
| Age | 21 to 67 years | From 21 to 67 years | 21 to 67 years |
| Income | Minimum 3.0 Lacs p.a | Net profit or GTI* of 3 Lacs p.a | Net annual income Rs. 4 Lacs |
| Maximum Loan Amt | 48 times net monthly income | 4 times net profit or GTI | 3 times net annual income |
Other SBI Car Loan schemes
- SBI Loyalty car loan scheme for home loan borrowers
- The SBI assured car loan scheme- based on 100% FD for on-road price
- SBI car loan lite scheme – for persons (professionals, business persons) engaged in economic activity that gives income but with no proof of income
- SBI Green car loan for the purchase of an electric vehicle
2. HDFC Bank Car Loan
HDFC Bank allows choosing flexible car loan repayment plans.
Schemes are step-up loans, balloon repayment schemes, EMI options, top-end loans with flexible repayment tenure.
The bank sold a wide range of cars and multi-utility vehicles for Rs. 3 crores for tenure up to 84 months.
HDFC Bank also has a separate portal hdfcbank.gaadi.com to help customers compare, research, and read reviews on new cars or apply for loans.
HDFC Bank Car Loan Eligibility
| Borrower | Salaried | Professionals, self-employed |
|---|---|---|
| Age | 21 to 60 years | 21 to 65 years |
| Income | Min 3 Lacs p.a | Earn 3 Lacs p.a |
| Employment/ Business status | Job for 2 years, 1 year with current employer | In business for 2 years |
| Others | Telephone or postpaid mobile |
3. Axis Bank Car Loan
You earn edge reward points for taking a car loan from Axis Bank.
Axis Bank offers car loans from Rs. 1 lakh and up to 100% of the value of the road. The loans are for a long tenure of up to 7 years.
Axis Bank Car Loan Eligibility
| Borrower | Salaried | Professionals, self-employed |
|---|---|---|
| Age | 21 to 60 years | 18 to 65 years |
| Income | Min 2.4 Lacs p.a | Min 1.8 Lacs p.a for selected models Others – Rs. 2 Lacs |
| Employment/ Business status | 1 year continuous with current employer | In business for 3 years |
4. PNB Bank Car Loan
PNB finances the purchase of a new car, jeep, van, multi-utility, and sports utility vehicles.
If the bank applies for a car loan within 3 months of purchase, the bank also reimburses the cost of the new car purchased from its own fund.
PNB Bank Car Loan Eligibility
- Cars to be used for private purpose
- A minimum net monthly salary of Rs. 25,000
5. ICICI Bank Car Loan
ICICI Bank offers loans for a new car, pre-owned car, and even car.
The loan amount is 100% of the on-road value for a tenure of up to 7 years.
ICICI Bank Car Loan Eligibility
| The bank does not specifies eligibility, but has an online eligibility calculator on its website which is based on your existing relationship with ICICI Bank. |
6. Bank of Baroda Car Loan
With a Bank of Baroda car loan, you can choose vehicles such as hatchbacks, sedans, MUVs, SUVs, sports cars, or luxury cars for finance.
The bank offers car loans up to Rs. 1 crore and is available to all including NRIs and PIOs. But the maximum loan amount is up to 90% of the on-road price of the car.
For any type of car loan from the Bank of Baroda, you need a minimum CIBIL score of 701.
Bank of Baroda Car Loan Eligibility
| Borrower | Salaried | Professionals, self-employed |
|---|---|---|
| Age | 21 to 70 years | 21 to 70 years |
| CIBIL Score | 701+ | 701+ |
Documents Required for Best Car Loan Providers in India
- Identity Proof: PAN card, Passport, Driving License, Aadhaar Card, Voter ID, Government-issued i-card.
- Address Proof: Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old).
- Income Proof: Form 16, last 3 months salary slip, last 3 months’ bank account statement showing salary credit.
- Age Proof: PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate.
- Quotation of the cost of the car selected from the dealer.
Compare Best Car Loan Providers in India
| Bank | Car Loan Interest Rates | Maximum Loan Tenure | Maximum Loan Amount |
|---|---|---|---|
| HDFC Bank Car Loan Rates | 7.65% Fixed | 7 years | 100% of ex-showroom price |
| SBI Car Loan Rates | 7.50% Floating | 7 years | 85% of on-road price |
| ICICI Bank Car Loan Rates | 7.90% Fixed | 7 years | 100% of ex-showroom price |
| Axis Bank Car Loan Rates | 8.70% Fixed | 7 years | 100% of on-road price |
| IndusInd Bank Car Loan Rates | 8.65% Fixed | 5 years | 85% of ex-showroom price |
| Kotak Bank | 6.50% Fixed | 5 years | 90% of ex-showroom price |
| PNB | 7.55% Floating | 7 years | 85% of on-road price |
| Union Bank of India | 7.40% Floating | 7 years | 85% of on-road price |
| Central Bank of India | 7.25% Floating | 7 years | 90% of on-road price |
| Andhra Bank | 7.40% Fixed | 7 years | 85% of on-road price |
| DBI Bank | 9.20% Fixed | 7 years | 90% of ex-showroom price |
| Federal Bank | 8.50% Fixed | 7 years | 90% of ex-showroom price |
| Bank of India | 7.45% Floating | 7 years | 85% of on-road price |
| Bank of Maharashtra | 7.55% Floating | 7 years | 90% of on-road price |
| Corporation Bank | 7.40% Floating | 7 years | 85% of ex-showroom price |
| Indian Bank | 9.65% Floating | 7 years | 85% of on-road price |
| OBC | 7.55% Floating | 7 years | 85% of on-road price |
| Bank of Baroda | 7.25% Floating | 7 years | 90% of on-road price |
| United Bank of India | 7.55% Floating | 7 years | 85% of on-road price |
Benefits of Car Loan
- Even if you have not taken all the money for it, it still helps you buy a car.
- Most car loans will finance the on-road price of the car.
- Some car loans will also finance 100% of the on-road price. This means no down payment.
- Some banks provide financing in crores, you are not limited to cars of your choice.
- Most car loans in India offer secured loans. This means that the car acts as a security/collateral for the loan.
- Procuring a car loan is usually simpler than other loan products. Individuals with a slightly unheard-of credit score can also expect a purchase. However, this option varies from bank to bank.
- Car loans in India often offer fixed interest rate options. This means you are always assured of a certain amount which has to be repaid monthly.
- Many lenders will offer interest rates based on your credit score so that you can get cheaper loans.
- Car loans are not just for new cars. A used car loan can help you buy a pre-owned car.
How to Calculate Car Loan EMI?
The EMI (Equated Monthly Installments) that you will pay will depend on of a few key factors. These are:
- The size of the loan
- The interest rate that is applicable to the loan
- The tenure of the loan
- The processing fees
Frequently Asked Questions
ANS: A car loan where the borrower is not required to make any down payment is known as a zero down payment car loan. In such loans, the bank or lending institution offers to fund the entire value of the car, and hence, these loans are sometimes referred to as ‘100% finance’.
ANS: There are plenty of reasons to go for straightforward, car finance in the form of personal loans – at least it is usually not cheap. Yes, you will usually have to pay a deposit, but this means that you will borrow less money, so your monthly payment will be lower.
ANS: When you take out a loan, some banks will expect you to pay the dealer a certain portion of the car value (usually 5% to 15%) before issuing a car loan. This is called a down payment.
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