If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
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    We found 34 Car Loan Interest Rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    13.1% - 15% Floating
    0
    20K - 10L
    1-5 Years
    Response Time Within 30 minutes
    Ad Rs.2,500 Amazon voucher free Paperless approval option available
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    9.10% - 15% Fixed
    Up to ₹ 6,153 One time fee
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    Eligibility Criteria
    9.00% Floating
    ₹500 to ₹7000 + S.T.
    1Cr Max
    7 Years
    Response Time Within 30 minutes
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    9.50% - 11% Fixed
    2,500 One time fee
    1L Min
    1-5 Years Tenure
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    9.15% - 11.6% Fixed
    Up to ₹5,150 One time fee
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free PAPERLESS APPROVAL OPTION AVAILABLE
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    12.5% - 14.5% Floating
    2% One time fee
    1.5L - 25L
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free 100% financing on car value
    What you'll love
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    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.75% - 11.50% Fixed
    Up to ₹5500
    1L Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    12.25% - 13.99% Fixed
    Up to ₹4000 One time fee
    75K Min
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free Paperless approval option available
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    Good to Know
    Eligibility Criteria
    9.15% Floating
    575 One time fee
    1L - 2Crs
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    Perks
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    Good to Know
    Eligibility Criteria
    16% Floating
    1% One time fee
    50K - 15L
    1-4 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    Perks
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    Good to Know
    Eligibility Criteria
    12% - 14% Fixed
    2,500 One time fee
    1L Min
    1-3 Years Tenure
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
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    Eligibility Criteria
    8.90% Floating
    ₹500 to ₹7000 + S.T.
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    SPECIAL OFFER FOR WOMEN
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  • Car Loan Interest Rate Reviews

    • HDFC Bank Car Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      My experience of availing car loan from HDFC Bank was really good. I got the loan on time and the since I bank with them already I did not have go through much of documentation work. The interest rate and charges was normal and reasonable and it was a hassle free service in all.
      Was this review helpful? 0
      , nagpur
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      Bankbazaar.com services are very good one and anyone can easily get the information from them. Website of the Bankbazaar.com is very easy to access, also its comfortable too. Response is also very good with the Bankbazaar.com and this is my first experience as well.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 23, 2017
    • Axis Bank Car Loan
      "Satisfactory"
      0.5 3.5/5 "Pretty good"
      Due to personal reasons I postponed the car loan plan with Axis bank. I am treated very well by Axis Bank executive as I have got the best service and response from them pertaining to the car loan application which is being submitted.The rates applied was 9% and the loan amount I tried to opt is 4 lakhs.
      Was this review helpful? 1
      , pune
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got a very good response from Bank Bazaar, when I reached them for the car loan, the response provided by them was very prompt, I had been using their service, it is really excellent. I am using Bank Bazaar mobile app and application it is very easy to check all the financial information on this site.
      Was this review helpful? 0
      , agra
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The response is very good from hdfc bank and the executive called me on regular basic to know the application status of the car loan, but my plan got postponed. Interest for the car loan was around 9% with the HDFC bank and the loan amount was about 8 lakhs,
      Was this review helpful? 0
      , agra
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The response is very good from hdfc bank and the executive called me on regular basic to know the application status of the car loan, but my plan was postponed. Interest for the car loan was around 9% with the HDFC bank. And the loan mount was eight lakhs.
      Was this review helpful? 0
      , agra
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      The bank bazaar web site helps me to compare and choose the products in the market. The bank bazaar web site is easy to use and user friendly. The bank bazaar customer service really helped me in concern to my car loan application. Overall I can say, bank bazaar gave a satisfied service
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Axis Bank Car Loan
      "Satisfactory"
      0.5 3.0/5 "Satisfactory"
      Due to my personal reason, I have not taken the car loan with the Axis bank. Interest rate with the Axis bank haven't discussed about this. Customer service with the Axis bank and they have done the follow on timely basis, also they have done the things in good manner.I have applied for three to five lakh loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      The services Bankbazaar has been very much satisfactory and the response has been really good too. This was very first experience in bank bazaar. and I came to know about bank bazaar via goggle. The website is good and overall I can say it I had no difficulties to get details of the banks and their deals.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 23, 2017
    • Axis Bank Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      Due to personal reasons I could not proceed with Axis bank for the car loan. I got a proper response and follow up from the bank checking about my requirement. The loan amount I have applied for 4.5 lakh In all it was a smooth experience.No hassle faced.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 23, 2017
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      It was a tremendous approach by state bank of India with respect to my car loan application. It is an very fast and quick response from SBI end. State bank of India has good transparency with their service, and everything was clear and keen in their service. They just took twelve hours to disburse my car loan. The rate of interest is very competitive with SBI as it was around 8.75%
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Excellent"
      0.5 4.5/5 "Excellent!"
      My loan application was addressed in a proper way. I submitted the loan on their website immediately when I received calls from their end and they inquired the information from me and forwarded my application to the bank. I received proper service from bankbazaar.com and this was not first experience I have already availed credit card from bank bazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Oriental Bank of Commerce Car Loan
      "Average"
      0.5 2.0/5 "Expected more"
      I had applied for a car loan with Oriental Bank of Commerce. The team contacted me once and collected all my details the reason I did not go with Oriental bank of Commerce for the car loan because the rate of interest was high 10% and I have asked they to reduce it they straight away they cannot do that.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Kotak Car Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      Six years back, I had taken car loan from Kotak Mahindra, it got completed. I purchased Hyundai I 10 car worth Rs.3.5 lakhs, Kotak Mahindra approved the requested amount with an interest rate of 11.5% but it was higher side at the time. Now it got closed successfully.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Smooth process"
      0.5 5.0/5 "Blown Away!"
      I had taken a commercial car loan from HDFC Bank earlier and at that moment I received a good deal on the interest rate and charges. It was a smooth process and I got the loan on time as well. The customer services and response was good and all the paper works were collected on time.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is good in providing proper information in regards to the loan. I did not face any challenges with bankbazaar at any point of time. The website is so simple to access and it is very informative. It is easy to choose the bank for the loan service.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 23, 2017
    • HDFC Bank Car Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      Once I submitted my application, they have responded.Once when the application was submitted It was not a good experience they had offered 10.25% as rate of interest which was bit high.compare to other banks. I had idea of applying five lakh rupees. I was over all not satisfied with the rate of interest so dropped the plan.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 23, 2017
    • SBI Car Loan
      "Overall good"
      0.5 4.0/5 "Great!"
      To start off, I had taken my car loan from State Bank of India , I had to go over to the bank to submit my paper work. I also had to visit the branch often for any queries. The charges and interest rate is normal. There is no much of difference when compared to the other private banks too.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 23, 2017
    • Bank Bazaar Customer Support
      "Proper Service"
      0.5 4.0/5 "Great!"
      My loan application was addressed in a proper way. I submitted the loan on their website immediately I received calls from their end and they inquired the information from me and forwarded my application to the bank. I received proper service from bankbazaar.com.
      Was this review helpful? 1
      , agra
      Reviewed on Jun 22, 2017
    • HDFC Bank Car Loan
      "Delayed Response"
      0.5 4.0/5 "Great!"
      I did not receive that much good response from HDFC bank for the car loan service. Actually I got delayed response from the bank. Also initially I was planning for the second hand car later I afford new car so I did not continue the loan process with HDFC bank.
      Was this review helpful? 1
      , agra
      Reviewed on Jun 22, 2017
    Common Loader Icon

    Car Loan Interest Rates is Rated as "Great!" by 27518 Users

    Fees & Charges

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    Car Loan BYTES FROM OUR KITCHEN

    Car is like your second home, where you spend most of your time with your loved ones after your own home. Because of the increase in traffic, cost of the public transport, and an increase in pollution, car seems to be the better option to take and has become a necessity in today’s world. But, most of us do not always have bulk amount in the accounts to purchase a car. So, the banks have given us an option to have a car loan where majority of the funds will be financed by the bank. And we have to pay some interest on the loan amount along with the principle amount in the form of EMI’s. So, let’s have a look at the car loan interest rates provided by some major banks:

    Apply for Car Loan Online

    Car Loan Interest Rates - June 2017

    Bank NameCar loan interest rates

    Axis Bank Car loan
    8.75% to 11.50%

    Dena Bank Car loan
    9.15%

    Federal Bank Car loan
    9.75%

    HDFC Bank Car loan
    9.15% to 11.60%

    ICICI Bank Car loan
    9.10% to 15%

    Jammu and Kashmir Bank
    9.55%

    L&T Finance Limited Car loan
    11% to 12%

    Oriental bank of Commerce
    9%

    Sundaram finance
    9.50% to 11%

    Therefore, these are the car Loan interest rates offered by some major banks and financial institutions in India. The lowest interest rate one can get is @10.40% provided by SBI, followed by 10.50% that is provided by the top 3 private sector banks including HDFC Bank, ICICI Bank and an Axis Bank. All these rates are very competitive in nature and provides a cheap source of car loan to the customers, fulfilling their dream of riding their own wheels.


    One must check the car loan interest rates and compare them among different loan providers to get the best quote on their eligibility, net income, loan tenure and the loan amount. You can compare the car loan interest rates at BankBazaar and can hit the balloon that you want to get. It will make easy in choosing the right loan for you.


    BankBazaar also provides you with facility of calculating your EMI’s after knowing your car loan interest rates. You can calculate it after putting the requisite information like, loan amount, loan tenure and interest rate that will help you in making the right decision for your bit.


    So, want to drive your car home? Check the car loan interest rates, compare it and get your car in few days!

    Perfect Car Loan Deals for you

    Car Loan Interest Rates 2017

    While seeking car loan, interest rates are of prime importance, as it has implications on your personal finances. So, deciding your lender is as important as choosing the right car model. One of the commonly made mistakes is that, people apply for car loans without much research and comparison. Loan comparison helps you in a lot of ways. From choosing the right amount of loan to getting the best interest rates, comparison portals help you in making well informed decisions. Given below is a list of top 20 banks, offering the best deal on car loans.

    Name of the Bank Interest Rate
    State Bank of India 9.25%
    HDFC Bank 9.15% to 11.60%
    Axis Bank 11.50% to 12.50%
    ICICI Bank 10.75% to 12.75%
    Sundaram Finance 9.25% to 11%
    L&T Finance 16% to 18%
    Jammu & Kashmir Bank 11.25%
    Andhra Bank 9.20%
    Punjab National Bank 9.60%
    Oriental Bank of Commerce 9.70%
    Federal Bank 9.75%
    Karnataka Bank 9.65%
    Bank of India 9.95%
    Vijaya Bank 9.80%
    Canara Bank 8.95%
    Bank of Baroda 9.75%
    Yes Bank 10.25% to 12.25%
    Union Bank 9%
    IDBI Bank 10%
    Central Bank 8.90%

    SBI Car Loan Interest Rates

    Interest rate 9.25% for men 9.20% for women
    Processing fees 0.50% of loan amount + service charges
    Pre closure charges Nil
    Loan tenure 1 year to 7 years

    HDFC Bank Car Loan Rate of Interest

    Interest rate 9.15% to 11.60%
    Processing fees Up to Rs.5,150
    Pre closure charges Pre closure is allowed after 6 months
    Loan tenure 1 year to 7 years

    ICICI Bank Car Loan Interest Rates in India

    Interest rate 10.75% to 12.75%
    Processing fees Up to Rs.6,153
    Pre closure charges Pre closure charges are applicable only after 18 months
    Loan tenure 1 year to 7 years

    Axis Bank Car Loan Interest Rates Comparison

    Interest rate 11.50% to 12.50%
    Processing fees Up to Rs.5,500
    Pre closure charges Two partial payments allowed in a year. 10% of the principal amount plus service tax till 6 months. 5% after 6 months.
    Loan tenure 1 year to 7 years

    Sundaram Finance Car Loan Interest Rates

    Interest rate 9.25% to 11%
    Processing fees Nil
    Pre closure charges 3% of the principal amount
    Loan tenure 1 year to 5 years

    L&T Finance Car Loan Rate of Interest

    Interest rate 16% to 18%`
    Processing fees Rs.9,000
    Pre closure charges 2% of the outstanding amount + service tax
    Loan tenure 1 year to 5 years

    Jammu and Kashmir Bank Car Loan Interest Rates

    Interest rate 11.25%
    Processing fees 0.5% of the loan amount
    Pre closure charges Nil
    Loan tenure 1 year to 7 years

    Basis for Arriving at Effective Car Loan Interest Rates

    Banks usually apply the same interest rates for all companies but dealer finances most of the times apply rates on a preferential basis. Your car loan interest rate depends on factors such as risk profile, loan tenure, monthly income, etc. While your bank may take into consideration all the aforementioned factors, your dealership finance may offer you a lower interest rate if you have owned a vehicle of the its parent company in the past. Banks usually mention their interest rates on websites and so it is easy to compare the loans of different banks. But on the other hand dealership finances offer loans on a preferential basis and hence, finding their loan details is often a difficult task. Even though car dealerships do not publish their interest rates on websites, you can get better deals on certain variants and models. So it is advisable that you tally the rates of interest offered by the banks and the dealership finance before making your final decision.

    Points to watch out for, before availing Car Loans

    • First and foremost, you should check the loan offerings of different banks and compare their interest rates. The interest rates are different for new and used cars. For new cars the interest rates range from 9.25% to 13.5%, while for used cars it is between 12% and 17.5%.
    • Keep in mind that there are additional costs involved in a car purchase which may not be covered under the loan amount sanctioned by your lender. Banks offer up to 80 to 90% or in some cases even 100% of the ex-showroom price of the vehicle. This does not cover charges such as registration fees, road tax, insurance premium, etc. which altogether constitutes the on-road price of your vehicle.
    • Banks charge you interest rates based on MCLR and the rate charged is generally a fixed one. However, if you are optimistic about a change in the MCLR figures in the future that may bring down your EMIs, then you can opt for floating interest rates.
    • Most lenders charge you for pre-closure of a car loan. Pre-closure charges vary from bank to bank and it is a percentage of the outstanding amount. Generally, it ranges from 3% to 5%, depending on the bank. However, some banks do not levy foreclosure charges.
    • It is easier to avail a car loan as the loan itself is secured against the new car. It also requires less documentation compared to other types of loans. However, it is wise to not stretch your budget and choose a vehicle that is easily affordable for you.

    General Eligibility Conditions for Approval of Car Loan

    Loan application Each and every bank requires a duly filled application form to be submitted.
    Credit report Your credit history plays a key role in the approval or rejection of a car loan application. A good credit score helps you get a better loan amount.
    Income Your lender may ask you to submit copies of your salary slips and bank statements along with the application.
    Identity proof Bank require customers to provide their proof of identity and residence to prevent incidents of fraud and theft.
    Insurance proof The lending organization may also ask you to proof of insurance, to ensure that the vehicle is adequately insured against accidents.
    Co applicant A co applicant is compulsory where where the primary applicant has a poor credit history. A co applicant increases the chances of getting a loan sanctioned.

    How to Apply for a Car Loan Online

    Banks usually have conservative policies which are favorable for individuals with a decent credit score. So make sure that you have cleared all your debts before applying for a new loan. You can apply for a car loan in three simple ways:

    • Apply online through the lender's website by filling out an online form and submitting the necessary documents online.
    • You can also apply through third party comparison portals such as Bankbazaar, where you can make side-by-side comparisons of loans offered by different banks
    • Visit in person any of the branches of your lender and submit an application for car loan, along with copies of necessary documents.
    • Get in touch with the customer care of your lender and speak to an executive, who will forward your loan request to the concerned department.

    Tips to Get the Best Interest Rate on your Car Loan

    Availing a car loan has become much easier these days as banks have relaxed a lot of complicated procedures involved in processing the loan application. However, there are some important points to keep in mind while applying for a car loan.

    • Always negotiate for the best offer if you plan to apply through a dealership finance. Dealers usually have a sizeable margin on new car sales which can come in the form of discounts if properly negotiated.
    • You must compare car loans offered by the leading banks before taking a final decision. Your dealership outlet may suggest you the banks they partner with. But it’s always wise to check a third party website and make a side-by-side comparison.
    • Your credit history will have an impact on your EMIs. So make sure that you have clear all your outstanding payments on existing loans before applying for a car loan. Banks are likely to quote a higher interest rate if your credit score is found to be low.
    • To have a better control over your finances, you must make sure that your loans are cleared at the earliest. So it is advisable that you do not stretch your loan unnecessarily if the EMIs are within your affordable range.
    • Ensure that you have read and understood all the points mentioned in the policy document before signing it. Read all the details pertaining to factors such as processing fees, pre-closure, exclusions, etc. In case of any doubt, get in touch with a banking executive for clarifications.
    1. Can I avail a car loan to buy a second hand car?

      Yes, car loans can be availed for the purchase of second hand cars, and the interest rate offered for such a loan shall depend upon the car you wish to purchase. The loan amount offered to you will only cover the cost of the vehicle itself. Other costs such as registration or transfer will have to be borne by the customer.

    2. Should I have to place a collateral when availing a car loan?

      There is no need to place another asset as collateral when availing a car loan. Since the money is being borrowed to purchase a car, it is a secured loan and the car acts as the collateral in this case. However, the registration certificate of the car will have to be endorsed with the bank, and the endorsement will be cancelled once you have fully repaid the loan. The bank has the option to cease the car if you do not pay the EMIs towards the car loan.

    3. What is the most that I can borrow as a car loan?

      The maximum amount of money that is sanctioned to customers who seek car loans ranges from 80% to 90% of the on-road cost of the car. There are banks that also lend 100% of the showroom price of the car. The interest rate offered on the car loan will depend upon the financial history of the borrower and whether you wish to purchase a new car or going in for a second hand vehicle.

    4. What is the tenure for a car loan?

      Car loans are usually granted for tenures ranging from one year to five year. The interest rate payable will depend upon the tenure, as the shorter the tenure, the higher the interest rate applicable to the loan and vice versa. There are certain banks that offer car loans for tenures ranging up to seven years as well.

    5. Should I earn a minimum income to qualify for a car loan?

      Most banks and financial institutions that offer car loans to their customers do not have a minimum salary requirement. However, there are chances that your loan application may be rejected if you earn a salary that is lower than the predetermined threshold level specified by the lender. In cases like these, you can apply with a co-borrower as it will increase your chances of qualifying for the loan.

    6. In what cases can I apply for a car loan along with a co-borrower or guarantor?

      Co-borrowers or loan guarantors are only needed in case an individual cannot meet the eligibility requirements of the bank, such as credit score, age or monthly income. If an individual meets all the eligibility criteria, there is no need for a co-borrower or guarantor.

    7. Will I be eligible for tax benefits if I avail a car loan?

      Car loans, unlike home loans, do not offer any tax benefits.

    8. How do you differentiate between a floating rate and a fixed rate car loan?

      In case of a floating rate car loan, the rate of interest applicable to the loan will vary based on the decision of the lender, whereas the rate of interest remains unchanged for the entire tenure of the loan under a fixed rate car loan. While one option guarantees a stable EMI payment for the customer, the payments in the other option can change from time to time.

    9. Can I negotiate the interest rate with the lender?

      Yes, customers may negotiate the rate of interest applicable to their car loan. To do so, you will have to have a good credit history and ensure that you enjoy a strong relationship with the institution from which you wish to borrow. If you have taken loans previously and ensured that your EMI payments were made on time and have cleared your loan within the tenure, you can ask the bank to lower the interest rate it charges you for a car loan.

    10. Will the car loan also cover registration and insurance?

      No. Car loans will only cover the cost of purchase of the vehicle, and not registration or insurance of the car. Since car insurance is compulsory for all cars, you will have to buy it separately and pay for it out of your own pocket. The same applies to the registration of the car. However, you can find a few banks that will cover the registration as well as insurance of your vehicle.

    11. What if I intend on selling my vehicle before the tenure of the loan is complete?

      You will not be allowed to sell your car unless you have repaid the loan in full. The bank will have to give you a No Objection Certificate if you are to sell the car, and the same will be given to you only once you have completed the repayment in full.

    12. What happens in case I fail to make EMI payments on time?

      In case you fail to make EMI payments on time, the bank shall consider you as a defaulter and charge you a penalty fee for late payment. You will be asked to be more regular with your payments and after several warnings if you still find it hard to pay your EMIs on time, you are at risk of losing your vehicle as the bank or lender can legally repossess the car. Moreover, your credit score will be negatively affected, leaving you with complications with future loan applications.

    13. How does zero percent financing work?

      Zero percent financing is an option that is made available by very few lenders. Under this concept, the manufacturer of the vehicle and the bank from which you borrow collaborate and the customer will only have to pay the amount borrowed in EMIs. The interest rate applicable to the loan will be paid by the manufacturer.

    14. Which banks offer the best interest rates for car loans in India?

      Some of the banks with the lowest rate of interest on car loans include Axis Bank, Federal Bank, Dena Bank, ICICI Bank, HDFC Bank, Jammu and Kashmir Bank, Oriental Bank of Commerce, Sundaram Finance, etc.

    15. Will I be allowed to pre-pay my car loan?

      Yes, most of the banks and financial institutions that offer car loans allows customers to pre-pay the same. However, there will be some terms and conditions for pre-payment of car loans. For instance, you will have to have completed a certain part of the tenure before you will be allowed to pre-pay the loan. There are prepayment charges applicable as well. Usually, the bank charges 1% to 4% of the loan amount as prepayment charges. Make sure you confirm all the charges applicable to prepayment before taking out the loan.

    16. How to get a car loan?

      You can apply for a car loan online through the bank’s website or through a third party comparison portal in no time. Later, the baking executive will get in touch with you to process the loan depending on your eligibility.

    17. What is the loan amount that is sanctioned?

      Most banks offer up to 90% of your car’s ex-showroom price. Some banks even finance up to 100% of the vehicle’s ex-showroom price.

    18. What are the documents required for a car loan application?

      You would be asked by your lender to submit the following documents:

      • A properly filled application form
      • Proof of identity
      • Address proof
      • Income proof
    19. What are the different types of interest rates offered by banks?

      Just like a home loan, you can avail either fixed rate of interest or floating rates of interest on your car loan.

    20. Do banks offer loans for used cars?

      Banks also provide loans for pre-owned vehicles and the interest rates would be comparably higher than loans for new vehicles. Other factors such as repayment capacity, car value, loan tenure, etc. remain the same.

    News About Car Loan Interest Rate

    • Datsun redi - GO Hatchback all set to take the market by storm

      One of Japan’s finest carmakers, Datsun is all set to launch its all new hatchback model redi - GO by the end of June. The redi - GO concept was initially launched at the 2014 Indian Auto Expo by Datsun. The Japanese carmaker also revealed the production version in April 2016.

      The redi - GO hatchback model scores well in terms of space and this car can comfortably accommodate four people. The car is taller than the Kwid and features a CMF - A platform. Datsun redi - Go comes with a ground clearance of 185 mm which will help the car tackle bad roads in a comfortable manner. Coming to the interiors, the redi - GO missed out on infotainment systems but flaunts an intelligent interior design. The redi - GO is expected to be priced between Rs. 2. 5 lakhs to Rs. 3. 5 lakhs.

      Planning to purchase the Datsun redi - GO? Check out exciting car loan offers at BankBazaar, also plan your finances ahead with BankBazaar’s Car Loan EMI Calculator.

      3rd June 2016

    • Volkswagen looks to gain a 15% production hike with the Ameo launch.

      With Ameo being launched in July, Volkswagen is counting on the compact sedan’s performance to improve its foothold in the Indian automobile industry. The leading car manufacturer is hoping to get a 15% production hike with the launch of the new vehicle. The Volkswagen Ameo is expected to compete with vehicles like Ford Figo Aspire, Hyundai Xcent and Maruti Dzire. The Ameo is under four metres in length and has been designed according to the traditional VW philosophy. The Volkswagen Ameo is available as petrol and diesel variants, with a 5-speed manual transmission. High-end variants of the Ameo will carry a DSG gearbox option. Car lovers across the country can approach any lender to procure a car loan and take home the all-new Volkswagen Ameo.

      25th May 2016

    • Awaiting the launch of Tata Kite 5, which has been seen tested on public roads

      Tata Motors’ Tata Kite 5, whcih was unveiled at the 2016 Auto Expo, was spotted testing on Indian roads. This compact sedan is based on Tata Motors’ Tiago hatchback and features the same engine as well. The car’s diesel version will feature the 1.05-litre Revotorq unit which produces 140Nm of torque and 70PS of power. The car’s petrol version will feature 1.2-litre Revotron unit which produces 114Nm of torque and 83PS of power. Both versions of the car will have a 5-speed manual gearbox. It is expected that the launch of the car will be in the upcoming festive season.

      13th May 2016

    • Toyota to launch Innova Crysta on May 5

      Toyota Motors is all set to launch the new Innova Crysta on May 2, pricing it between Rs 12 and 18 lakh. The successor of the hugely successful Innova, the Crysta will be available in both petrol and diesel engine, with the option to choose between a manual and automatic transmission. The new car gets a complete makeover compared to its predecessor and Toyota hopes that it will retain the market share it occupied with the old Innova.

      4th May 2016

    • Aston Martin DB11 revealed

      Images of the new Aston Martin DB11 has been revealed before its official reveal date. The car is scheduled to be revealed at the Geneva Motor Show later this year. The leaked images reveal that the car is very stylish and the designs have been slightly influenced by the other Aston Martin car models. This car will have a new 5.2 litre twin turbo V12 engine, which will result in a power of around 600 PS. If you want to own this car, you can apply for a car loan on BankBazaar and avail attractive rates of interest.

      21st March 2016

    • Volvo reveals the V40 before its debut

      Swedish automaker, Volvo, has revealed pictures of the new version of the V40. The car is set to debut in the upcoming Geneva Motor Show. The new model gets a facelift to ensure it is in sync with the rest of the series of Volvo cars. The 2017 V40 also gets the new LED headlights with Thor’s hammer, the new mark of Volvo. This mark has already been made on the S90 and XC90. The new V40 also gets a new grille and an Iron Mark logo. The interiors of the car will see a City Weave upholstery, similar to the one seen on the Estate Concept model.

      The Volvo V40 will be fitted with a less pollutant D2 2.0 litre 4-cylinder engine. The automaker is expected to unveil the V40 and The V90 on March 1st 2016. Once a price tag is hitched to the car, interested buyers can plan their finances through car loans or other means to purchase the V40.

      11th March 2016

    • Car Loan Interest Rate May Decrease only in March

      The Reserve Bank of India is holding policy rates leading to banks being unable to cut interest rates any time soon. Car loan applicants will not see any relief in interest rates at least till March. RBI is currently expecting fiscal reforms to play a role in easing bottlenecks. RBI might cut rates only after the Budget in March. It is awaiting more information and data on inflation development. The coming Union Budget will have structural reforms that control spending and boost growth. This will enhance the growth support the monetary policy can provide. It will also be able to ensure that the inflation rate remains at 5% by the end of the fiscal year.

      22nd February 2016

    • Cheap Auto loans & Increased Interest Rates!

      Car loan interest rates has been increasing subtly and it is more apparent than ever this year, though going by usual standards, they are still pretty low. Most customers will shell out only a few bucks more every month than they normally would have when interest rates on practically all kinds of vehicle financing dipped in 2013. Automobile firms also offer cut-price loans on more designs this season.

      The average interest rates for cars and trucks, be it new or used, have escalated by more than 25 percent as per a recent survey. The less you disburse to fund a new ride, the more reasonable will be your EMIs.

      20th May 2015

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