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 35732 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

    • Kotak Car Loan
      "Hassle free experience"
      0.5 5.0/5 "Blown Away!"
      I took car loan from Kotak Mahindra, the interest is lesser as compared to others. In fact they gave me proper support on the loan process. I purchased innova kisha 2.8Z model, they have sanctioned ex showroom with best interest. Overall I am fine with them.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2019
    • ICICI Bank Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have taken a car loan in ICICI bank for more than one year. As per my requirement i received a loan amount from the bank for the duration of 3 years. The rate of interest is low when compare to other that is good advantage in this bank. The customer service is good and supportive.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 25, 2019
    • SBI Car Loan
      "Prompt Service"
      0.5 4.5/5 "Excellent!"
      In SBI, the car loan interest is lower, the bank have quoted me around 9% of interest for the loan amount of Rs. 4 lakhs. My loan has the duration of three years, still my loan is running with their end. They do have balance transfer and part payment option, the service is prompt on time car was delivered.
      Was this review helpful? 0
      , vadodara
      Reviewed on May 25, 2019
    • IndusInd Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      i have been using holding car loan with INDUSIND bank , i have taken model Hyundai grand i10 car . i am directly approach this bank , the loan amount which they have given to me was sufficient, loan amount is 4.5 lakhs and 2 years tenure.on time received loan amount good services. Customer service is very excellent.
      Was this review helpful? 0
      , coimbatore
      Reviewed on May 24, 2019
    • HDFC Bank Car Loan
      "Good car loan experience"
      0.5 5.0/5 "Blown Away!"
      In the year of 2015 August month, i took my car loan from HDFC. They have given me a two options in that i have chosen HDFC. I applied the car loan of 10.50 lakhs and i made the down payment of Rs. 2.5 lakhs. The loan has been closed before tenure period. They have offered me a interest rate of 10.5%. There was 3% pre-closure charges.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 24, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My auto loan was taken with HDFC BANK . The loan is very good . The tenure period is sufficient . The process didnt took much time and it happened on time, There was a proper follow up and i have got the amount on time. Interest rates seems to be fine as now.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 23, 2019
    • HDFC Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      i have been using holding car loan with HDFC bank , i have taken renault redigo car . i am directly approach this bank , the loan amount which they have given to me was sufficient, loan amount is 3 lakhs and 5 years tenure.on time received loan amount good services.
      Was this review helpful? 0
      , chennai
      Reviewed on May 23, 2019
    • Kotak Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with Kotak BANK , the process of getting loan was too fast i just got my loan in few days and loan amount 5 lakhs and 5 years tenure model of the car martui shift one time processing fee 4000rs. I even like the customer support approach.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 23, 2019
    • review Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      My Car loan with Bajaj Finserv was taken a long time back and it will be getting completed within sometime. The overall experience i had has been quite good, the loan amount has been sufficient and there was a nominal processing charges made by them. The interest rate with them had also been quite nominal.
      Was this review helpful? 1
      , chennai
      Reviewed on May 22, 2019
    • Axis Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken a Car loan from Axis Bank recently and the experience has been really good. The process in getting the loan did not took much time and they offered me with a good interest rate, They did not made any sort of extra charges and i am satisfied.
      Was this review helpful? 1
      , chennai
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had taken a Car loan from HDFC Bank a while back and the process in getting the loan was pretty much good. The interest rate has been nominal and there was some processing fee of 1500 which they had made. This loan will be completed in another year.
      Was this review helpful? 1
      , coimbatore
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has almost been five years since i have taken the Car loan from HDFC Bank and the experience has been really good. The loan amount was sufficient and the interest rate has been quite nominal. There was some charges which they had made as processing fee and the loan is closed.
      Was this review helpful? 1
      , coimbatore
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Best servivce"
      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 dont have to worry about document . The tenure period is good and they charge nominal rate of interest and also the processing fee charged by them is very much nominal.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on May 22, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using holding car loan with HDFC bank twice, i have taken swift dzire car and even innova car from this card, i am directly approach this bank , the loan amount which they have given to me was sufficient, the rate of interest they have charged me up to 8.5% which was nominal, even they have charged me 0.5% processing fee which was minimal.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 21, 2019
    • SBI Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan in SBI bank for more than one year. The loan amount was sufficient which was given from bank for the tenure of 5 years. The rate of interest is less when compare to other bank. The processing fee was applicable. The customer service is good.
      Was this review helpful? 2
      , new delhi
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Need to decrease charges"
      0.5 4.0/5 "Great!"
      I have taken a car loan in HDFC bank for more than 2 years. As per my expectation I received a loan amount for the tenure of 5 years. But the rate of interest is too high. Due to for an emergency purpose I have taken a loan in this bank. The processing fee was nominal.
      Was this review helpful? 0
      , indore
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      HDFC bank have allocated one personal banker to handle my queries. They have suggested car loan, then I availed it, the bank have approved the principal amount of Rs. 5 lakhs to purchase the car for the duration of 60 months. I am very fine with them.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      Iam chossen HDFC bank car loan on feberuary month 2019. model of the car swift d-zire .rate of interested 8.5% and tenure is 37 months,i already paid 3 months payments.customer service quick response,I received amount on time.i ll recommended to my friends and relatives.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I was taken a car loan in HDFC bank for the past 6 years ago, at an initial process was smooth and on time i received a loan from bank. As per my expectation I received a loan amount for the duration was 5 years. rate of interest was nominal. Now I have close the loan.
      Was this review helpful? 0
      , indore
      Reviewed on May 21, 2019
    • HDFC Bank Car Loan
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan in HDFC bank for more than 10 years ago, at the time loan amount was sufficient as per my expectation for the duration of 5 years. The rate of interest is nominal.Processing fee was good. The customer service is good and responsiveness.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 20, 2019
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