If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • Car Loan Interest Rates 2019 is Rated as "Excellent!" by 35548 Users

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    Car Loan Interest Rates 2019

    Name of Bank Interest Rates on Car Loan (p.a.) Financing
    State Bank of India (SBI) Car Loan 9.30% to 9.80% Up to 90% of the on-road price of the vehicle
    HDFC Car Loan 9.75% to 10.60% rack interest rate Up to Rs.3 crore or up to 100% of the on-road price of the vehicle
    ICICI Car Loan 12.85% up to 35 months 9.30% for 36 to 84 months Up to 100% of the on-road price of the vehicle
    Union Bank of India Car Loan One-year MCLR – 8.60% Base Rate – 9.00% Up to Rs.125 lakh for a new vehicle
    Axis Bank Car Loan 9.25% to 11.50% Minimum Rs.1 lakh, up to 100% of the on-road price of the vehicle
    Federal Bank Car Loan 9.20% for new vehicles Up to 100% of the ex-showroom price of the vehicle
    IndusInd Bank Car Loan 10.65% Up to 85% of the ex-showroom price of the vehicle
    Punjab National Bank Car Loan 8.75% Up to Rs.100 lakh or 25 times of the net monthly salary or pension or income (lower of the two).
    Oriental Bank of Commerce (OBC) Car Loan For male borrowers: 1-year MCLR + 0.50% For female borrowers: 1-year MCLR + 0.40% Up to Rs.20 lakh (100 equated monthly instalments) Up to Rs.25 lakh (120 equated monthly instalments)
    Jammu and Kashmir Bank Car Loan Fixed rate – 11.25% p.a. Floating rate – B.R + 1.00% p.a. (both with monthly rests) Net monthly salary of the applicant for 36 months or 3 times the net annual income.
    Andhra Bank Car Loan 1-year MCLR + 0.70% Rs.25 lakh to Rs.50 lakh on the basis of the dealings with the bank.
    Bank of Maharashtra Car Loan Fixed rate – 8.95% Up to 2 times the average annual income of the applicant
    Bank of India Car Loan 1-year MCLR + 0.50% = 9.10% Up to Rs.125 lakh
    Central Bank of India Car Loan Floating rate – MCLR + 0.40% Fixed rate – MCLR + 0.40% Up to Rs.75 lakh
    United Bank of India Car Loan For male borrowers: MCLR-Y + 0.30% = 9.15% p.a. For female borrowers: MCLR-Y + 0.25% = 9.10% p.a. Up to Rs.40 lakh
    Dena Bank Car Loan Base rate – 9.60% BPLR – 15.10% Up to Rs.200 lakh
    Syndicate Bank Car Loan 1-year MCLR + 0.75% Up to 85% of the on-road price of the vehicle + Rs.10,000 for accessories, or 3 times of the gross annual income of the applicant (lower of the two)
    IDBI Bank Car Loan 9.30% to 9.90% -
    Bank of Baroda Car Loan 1-year MCLR + strategic premium + 0.25% to 1-year MCLR + strategic premium + 2.00% (on the basis of risk factor associated) Up to 90% of the on-road price of the vehicle to an extent of Rs.100 lakh
    Canara Bank Car Loan For women borrowers – 1-year MCLR + 0.30% to 0.85% = 9.00% to 9.55% For other borrowers – 1-year MCLR + 0.35% to 0.95% = 9.05% to 9.65% Up to 90%/85%/80% of the total value which includes of invoice value, registration charges, life tax, insurance premium, and other accessories.

    Car Loan Interest Rate Details

    Car Loan Interest Rate Particulars Details
    Interest rate 8.25% - 15% p.a.
    Processing fee 0% to 2% of car loan amount + Applicable Service Tax (One-time fee)
    Type of interest rate Fixed or floating
    Loan amount Rs.25,000 to Rs.2 crore
    Loan tenure 1 to 7 years
    Preferred credit score 750 or above
    Pre-closure fee Nil to 6% of principal of the outstanding car loan amount
    Perfect Car Loan Deals for you

    Car Loan Rates for 2019

    Today, a car is no longer considered to be luxury, but a necessity. However, shopping for a car can be quite a task. Choosing the car that you like, the colour you would like to get, the features you are looking for in your car, the budget, etc. are some of the many things you generally consider while shortlisting the right vehicle for yourself. However, the most important task is the financing for the car.

    This is where car loans and car loan rates enter the scene. You can easily apply for a four-wheeler loan and purchase your dream car now. The car loan rates will help you ascertain the interest amount that you would be paying for your car, in addition to the principal amount. You can get a car loan for a desired tenure and pay off the debt in monthly EMIs. The growing number of car loan lenders has made it easier to apply and get car loans, and the best part is the fact that you can avail a new car loan or a used car loan, as per your preference.

    Car Loan Interest Rate

    Benefits – Car Loan Interest Rates

    1) Easy instalments: While you are using the car of your dream, you can also pay off the amount through easy instalments.

    2) Collateral: When you apply for a car loan, you will not be required to provide separate collateral against the loan amount. In case of a car loan, the car you get using the loan acts as collateral.

    3) Foreclosure: Most car loan lenders offer the provision of foreclosing a loan. In case, you can afford to pay off the loan before the end of the loan tenure, you might want to write off the debt straightaway. In such cases, lenders offer foreclosure. However, you might or might not be charged for foreclosure. The foreclosure charges differ from lender to lender. Even if a foreclosure charge is applicable, in most cases the charges are really low.

    Comparison of other Related Factors other than Car Loan Interest Rates

    Down Payment The financing provided in a car loan differs from lender to lender. Down payment is the initial amount that you pay at the time of getting the car. The higher the down payment, the lower will be the burden of loan. This will lead to lower EMIs. Thus, it is recommended to make a down payment of as much as you can afford to spare.
    Car Loan Processing Fees The usual processing fees for a car loan can range between Rs.250 and Rs.20,000. The processing fees differ from lender to lender. You should check and compare the rates before you opt for the loan.
    Foreclosure and prepayment After getting a car loan, if you feel that you will be able to close off the debt earlier, you might want to write off the debt partially or fully. In case of partial repayment, it is referred to as prepayment. If the entire loan amount is paid off, it is called foreclosure. In such cases, your lender might charge a fee for the same. The charges usually range from nil to 5%. In some cases, the lenders do not even allow prepayment or foreclosure. Thus, it is advisable to check and compare the rates at which the lender charges the fees.
    Insurance Premium As per the Motor Vehicles Act, it is compulsory to have a motor insurance policy for your car. The insurance coverage and the premium amount provided by different insurance providers vary. It is recommended that you compare the different insurance terms and conditions before you choose an insurance policy for your car.

    Schemes Related to EMI for Car Loans

    There are a number of schemes from which an individual can choose the terms for his or her loan repayment. These schemes can be summed up as follows:

    1) Advance EMI scheme: In this scheme, the EMI is paid on an advance basis. That is, the EMI is charged at the beginning of a month.

    2) Arrear EMI scheme: In this scheme, the EMI is paid on an arrear basis. This is the usual method of paying off EMIs. In this case, the EMI is paid at the end of a month.

    3) Flat rate of interest scheme: In this case, the EMI consists of the amount which is paid as interest on the total amount of principal till the end of the tenure of the loan.

    4) Zero interest EMI scheme: The zero interest EMI scheme is also known as the 0% finance scheme or the no-cost EMI scheme. However, when it comes to car loans, it is just a fancy marketing term. If a scheme claims to provide zero interest on the car loan, it is highly likely on the part of the car dealership to just flare up the price of the car up to the amount of interest.

    5) Reducing balance scheme: Under the reducing balance method, the interest paid by you will be calculated on the amount outstanding every month. The balance amount of the principal, in this case, keeps reducing with the payment of each EMI.

    Car Loan Eligibility Conditions

    When you are interested in applying for a car loan from any bank or NBFC, you will need to meet certain eligibility criteria to get your loan application approved. Each bank and each NBFC will have different eligibility criteria for its car loan borrowers. The eligibility conditions that are common across all lenders include age, income, insurance proof, identity proof, car model, etc. Apart from individuals, a business firm or organisation can also apply for a car loan.

    Particulars Details
    Minimum age 18 to 21 years
    Maximum age 70 to 75 years
    Employment status Salaried or self-employed
    Minimum income Rs.10,000 per month
    Type of car Old or new. The loan interest rate will be determined according to the type of car.
    Number of years of work experience for loan applicant Total of 3 years of experience in company or business and at least 2 years in present profession or business or position
    Value of car This has an impact on the loan amount that will be approved and the loan interest rate.
    Area of residence Urban or semi-urban or rural. Your car loan interest rate will be fixed accordingly.
    Car model Only approved car models
    Income eligibility proof Latest salary slips, Form 16, or latest income returns
    Insurance proof Your bank or NBFC may ask you to show your car insurance policy before approving your car loan.
    Credit report and credit score Your lender will review your credit report thoroughly to understand your previous credit behaviour. If you have a good credit score, you will be eligible for your car loan.
    Co-applicant If your credit score is very low, your lender may require you to have a reliable co-applicant to approve your car loan application.
    Identity proof In order to prevent fraud or theft, you will need to furnish accurate proof of identity while applying for a car loan.

    Frequently Asked Questions (FAQs)

    1. Can an applicant negotiate on the car loan interest rates?

      Yes, an applicant can negotiate with the bank for a lower interest rate on their car loan. Generally, the interest rates are not fixed. They vary for different customers. Thus, if the applicant holds a good credit history, he or she can ask the lender for lower interest rates. A lender will offer lower interest rates for the loan if it considers the applicant to be worthy.

    2. What are the options in regard to interest rates that are offered by the banks?

      Generally, there are 2 different types of interest rates that are offered to the customers by the lenders. They are – floating interest rates and fixed interest rates. The applicant has to make a choice and choose one of the options as per their requirement.

    3. What loan amount are you eligible for?

      The loan amount that an applicant will be eligible for will be based on a number of factors such as his or her income, age, credit history, and so on. Usually, banks offer finance of up to 85% to 100% of the value of the vehicle. However, the financing will be based on the factors mentioned above. Other factors that are taken into consideration are the credit score of the applicant, the type of vehicle that he or she is purchasing, the actual cost of the vehicle, etc.

    4. What are the documents that are required at the time of applying for a car loan?

      The documents that an applicant will be required to provide at the time of applying for a car loan are as follows:

      • Identity proof
      • Proof of address
      • Proof of age
      • Proof of income
      • Documents in relation to insurance, and a few other documents
    5. How much time does it take to process a car loan?

      After the submission of documents to the lender, the bank usually takes 3 to 7 working days to process a car loan.

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    Car Loan Interest Rate Reviews

    • HDFC Bank Car Loan
      "Its Average"
      0.5 3.0/5 "Satisfactory"
      I taken car loan and closed it within three months of time. I bought commercial vehicle they charge normal interest for the foreclosure of the loan. I took the Rs. 4 lakhs for the duration of 36 months, the customer service is good, on time car delivery was happened.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 24, 2019
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had taken a Car loan from HDFC BANK a long time back where the experience had been good. The interest rate with them has not been high nor there was any additional charges made by them as per my knowledge. The loan was closed a long time back and there hasn't been any difficulty faced with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • SBI Car Loan
      "Very good"
      0.5 4.0/5 "Great!"
      I have taken one four wheeler loan from state bank of India recently last 3 month back , and my maruti suzaki wagnour 2019 modal , and loan amount is 6L , tenure is 5 years , and rate of interest is nominal , and their customer service is good , I am satisfied with this loan ,
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 24, 2019
    • HDFC Bank Car Loan
      "Good"
      0.5 4.5/5 "Excellent!"
      I have taken a car loan from HDFC BANK and it was completed long back. The process was very quick and got 80% funding to buy the car. The documentation process was very simple. I have purchased Swift Dzire and the tenure was 5 years. I foreclosed the closed with the charges which am aware. I bought an another car the interest rate, If I compare with Axis Bank and the charges are pertty high in HDFC BANK.
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 24, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      HDFC gave me the fixed car loan interest, I done the foreclosure they gave me 5 years of tenure but I closed in 3 years. There was no foreclosure charges, I took the loan amount of Rs.9 lakhs to purchase the Honda city car. I got the car delivery on time, the process was smooth and perfect.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Apr 24, 2019
    • HDFC Bank Car Loan
      "Faster approval"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan in HDFC BANK and it was suggested by the showroom. I have purchased Maruti Swift. I have not compared the interest rate but have paid only one EMI. The loan process was simple and have opted for 5 years. There was no processing fee.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 23, 2019
    • Axis Bank Car Loan
      " Satisfactory Experience"
      0.5 5.0/5 "Blown Away!"
      My car loan is running with Axis bank they gave me good interest, I took the loan before four years to purchase the Honda grand I 10. I took the loan amount of Rs. 6.5 lakhs for the duration of five years, I am very satisfied with the bank process.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 23, 2019
    • Axis Bank Car Loan
      "Very good"
      0.5 4.0/5 "Great!"
      I have taken one four wheeler , muruti suzaki zxi 2018 model , my loan amount is approx 6L and rate of interest is 9.44% little high , and tenure is 5 years , EMI amount is 12K approx last one years above I took this loan , and their allover service is good , I am satisfied with this loan ,
      Was this review helpful? 0
      , noida
      Reviewed on Apr 23, 2019
    • SBI Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      I have a car loan in State Bank of India and the interest rate is nominal. It was taken 3 to 4 months back and the loan process was simple. I have purchased a Hyundai Grand i20. There was processing fee around 2000 rupees which I donâ??t remember. I have taken 40% loan and rest made payment.
      Was this review helpful? 1
      , kolkata
      Reviewed on Apr 23, 2019
    • HDFC Bank Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have applied for HDFC Bank Car loan directly with the bank.I have applied before 6 months .The rate of interest and the processing fee was nominal .The loan got sanctioned on time and it was sufficient .I have applied for the loan amount of 4 lakhs for the tenure of 3years .I have not faced any issue so far.
      Was this review helpful? 1
      , chennai
      Reviewed on Apr 22, 2019
    • Karnataka Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with karnataka bank recently, they have given me sufficient loan amount and there rate of interest they have charged was nominal for me and there processing fee they have charged me nominal only.As i am privilege customer they have not charged me processing fee.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 21, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I had taken a car loan from HDFC BANK for a while, they have given me sufficient loan amount, and the rate of interest they have charged me was bit high, and they have charged me processing fee in this loan it is nominal for me and i got this loan directly through showroom , it is pre owned car my friend help me in taking this car and loan.
      Was this review helpful? 1
      , ahmedabad
      Reviewed on Apr 21, 2019
    • HDFC Bank Car Loan
      "Best service"
      0.5 4.5/5 "Excellent!"
      I hold my car loan with HDFC bank from past one year, The loan amount which they have given to me up to 5,00,000 which was sufficient,the rate of interest they have charged me up to 8% which was nominal, they have not charged me processing fee, still this loan is running.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 21, 2019
    • Bank Bazaar Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Customer relation officers are very polite and will defiantly look for more deals in future too with Bank bazaar.I've been using the Bank bazaar platform for a while.. I never faced any issues during the application and it is very convenient platform to apply for various financial producs online.
      Was this review helpful? 1
      , patna
      Reviewed on Apr 21, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with HDFC BANK the process of getting loan was too fast i just got my loan in few days and i donâ??t have to submit document . The rate of interest is 9.5% and i got 420000 . The tenure period is 5yera and they charge nominal rate of interest it is . They gave charge nominal processing fee too .
      Was this review helpful? 0
      , patna
      Reviewed on Apr 21, 2019
    • Bank Bazaar Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My application was processed on time and i got my credit card. In future too i will look for deals through Bank Bazaar. Customer Service is great.Had a wonderful Experience with Bank Bazaar as they are quick when it comes to processing of application.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Apr 21, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I took a car loan from the HDFC BANK . The application process was Smooth. The loan was approved with in few days . The loan amount got debited soon to my account. Overall it was a smooth experience. Loan amount is 460000 and it is very satisfactory whatever the requirement i have i got that . .
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Apr 21, 2019
    • Bank Bazaar Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I came to know about bank bazaar through one of my online, and since then started using it.Had a wonderful Experience with Bank Bazaar as they are quick when it comes to processing of application.It is a Genuine Place for applying any sort of loans.
      Was this review helpful? 0
      , vadodara
      Reviewed on Apr 21, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I had taken a Car loan with HDFC bank. I applied for 700000 and i got the same and it is for 5 years . The processing of my application was quick enough and also the response was quite good. Overall HDFC services are good i have also taken Personal loan with HDFC.
      Was this review helpful? 0
      , vadodara
      Reviewed on Apr 21, 2019
    • Kotak Car Loan
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I have applied for the car loan with the KOTAK MAHINDRA BANK where the documentation process was simple and i got the loan on time. I have used the loan for 5 years and the ,loan amount was satisfactory and also the rate of interest was nominal.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 20, 2019
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