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
    8.95% Floating
    ₹500 to ₹7000 + applicable tax
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free Paperless approval option available
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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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    8.25% - 9% Fixed
    Up to ₹4,720 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
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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
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    Eligibility Criteria
    13.50% - 15% Fixed
    Up to ₹5,310 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% - 9.30% Floating
    575 One time fee
    1L - 2Crs
    1-7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free
    What you'll love
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    Fees & Charges
    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
    What you'll love
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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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    8.85% Floating
    ₹500 to ₹7000 + applicable tax
    1Cr Max
    7 Years
    Response Time Within 30 minutes
    Rs.2,500 Amazon voucher free SPECIAL OFFER FOR WOMEN
    What you'll love
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  • Car Loan Interest Rate Reviews

    • Bank Bazaar Customer Support
      "Best"
      0.5 5.0/5 "Blown Away!"
      Everything is good one with the Bankbazaar.com, also everything is fine with them. I came to know about Bankbazaar.com through my friends. Response and other things are really good. Website of the Bankbazaar.com is very good and clear too.
      Was this review helpful? 0
      , pune
      Reviewed on Aug 22, 2017
    • Axis Bank Car Loan
      "Satisfactory "
      0.5 5.0/5 "Blown Away!"
      I have postponed my plan for long time and that's why I have not went ahead with the Axis bank for the car loan. The interest rate was okay for me customer service was good one with them and the response too. All of the time things are okay with the Axis bank.
      Was this review helpful? 0
      , pune
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Nice experience"
      0.5 4.0/5 "Great!"
      The follow up process was good at Bankbazaar as it was a continuous follow up till the end. As soon as I registered I received an acknowledgement SMS, it would have been better if the call was also immediate as I got the call quite later. The website is good and user friendly.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Its Excellent "
      0.5 5.0/5 "Blown Away!"
      I am fully satisfied with Bank Bazaar, is good. your Bank Bazaar executives are helpful and supportive on the loan product. The site is easy to check all the competitor rates without visiting to the bank. I am very fine with the Bank Bazaar its upto the mark.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 22, 2017
    • ICICI Bank Car Loan
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      I was out o f station hence I am unable to take car loan right now. But I am planning to take the car loan end of this month. I am happy with ICICI, they called and helped on loan process. But I felt, interest rate was high when compared with HDFC bank.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 22, 2017
    • HDFC Bank Car Loan
      "Overall good "
      0.5 4.0/5 "Great!"
      HDFC Bank was good in the car loan process. The customer services is good and the experience was nice overall. I was also comfortable with the interest rate and processing charges. I got a rate around 8% and there is a lock in period of 18 months for a prepayment option.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Its great"
      0.5 5.0/5 "Blown Away!"
      When I was in trouble Bank Bazaar helped me to get the best scheme from the market when I directly visit to the bank, they haven't responded. Through Bank Bazaar made everything possible executive helped on it. I am fine with Bank Bazaar website all offers in one stop.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Aug 22, 2017
    • HDFC Bank Car Loan
      "Its Nice"
      0.5 5.0/5 "Blown Away!"
      I have inquired for the car loan, my dealer insisted me to go with their tie up banks. Hence I don't get opportunity to go with HDFC. But they are good in response, they have called me and confirm my required, HDFC rate of interest and processing fee is also fine.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Aug 22, 2017
    • Kotak Car Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      My car loan is from Kotak Mahindra Bank. The services was too good from them. The response was good as well. I just had to submit few documents like normal documents It was a simple process. The rate of interest offered was normal and processing fee was also normal and the tenured was for 5 years of time over all it was very good experience availing car loan from kotak.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Easy to get a loan"
      0.5 4.5/5 "Excellent!"
      I thought it would a tough job for me to get a loan. But it was very convenient for me to get through with the bank because I logged into the website of Bankbazaar. The customer support is excellent, I got a response immediately as soon as I registered and they helped me through.
      Was this review helpful? 0
      , chennai
      Reviewed on Aug 22, 2017
    • Sundaram Finance Car Loan
      "Overall good "
      0.5 4.5/5 "Excellent!"
      The experience was good at Sundaram finance for the car loan. I got the loan on time and the process was also quick for the document collection. I can make a prepayment after one year. The interest rate is of 9.5% and the processing charges is of 2.5%
      Was this review helpful? 0
      , chennai
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Instant services"
      0.5 5.0/5 "Blown Away!"
      This is my first time at Bankbazaar and I am very happy about the experience. I just casually registered my details, and to my surprise I received a call instantly and I was given the details of the banks and I also got a good deal as well. It is a perfect process.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 22, 2017
    • HDFC Bank Car Loan
      "Experience is good"
      0.5 5.0/5 "Blown Away!"
      HDFC Bank has always been fine in the customer services. I have taken a car loan and the documentation is nominal. I also checked about the prepayment, I was informed that I could do the same after six months. The interest rate was around 8.75% and the processing charges was 3K.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Wonderful"
      0.5 4.0/5 "Great!"
      Bankbazaar.com is good and I have got lot of information regarding the different information and the bankers. Response with the Bankbazaar.com is an immediate one. Customer service is also a good one with the Bankbazaar.com.
      Was this review helpful? 0
      , mumbai
      Reviewed on Aug 22, 2017
    • Axis Bank Car Loan
      "Wonderful"
      0.5 4.5/5 "Excellent!"
      I have decided to go ahead with the full payment to get the car, which I have finalized and that's why I have not deal with the Axis bank. Response and the customer service was good one with the Axis bank. In future ,I would like to go ahead with the Axis bank.
      Was this review helpful? 0
      , mumbai
      Reviewed on Aug 22, 2017
    • HDFC Bank Car Loan
      "Fantastic service"
      0.5 5.0/5 "Blown Away!"
      HDFC car loan service is really good, they provide me a fantastic service and their representatives were very much helpful. The process followed by them was very quick and very good interest because the rate of intrest for my car loan was very low when compared to others banks within 2 to 3 days they completed my car loan process for me which was very helpful for me so it was really a good service I received from HDFC.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Review"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar have a good customer support and gave me timely response on all financial products. Many time I have visited Bank Bazaar to compare benefits of right product. People of Bank Bazaar gave me good support and prompt response on my queries.
      Was this review helpful? 0
      , new delhi
      Reviewed on Aug 22, 2017
    • Bank Bazaar Customer Support
      "Easy to Navigate"
      0.5 5.0/5 "Blown Away!"
      Bank Bazaar has a good online option, to explore the offers. The website is very good to navigate and take the best products and also they are giving customer oriented service. I got instant call from your end then they guided me to connect with the bank.
      Was this review helpful? 0
      , kanchipuram
      Reviewed on Aug 21, 2017
    • HDFC Bank Car Loan
      "Customer Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I bought Duster car worth Rs. 4 lakhs, HDFC sanctioned without insurance amount of Rs. 3.3 lakhs with the interest rate of 10.5% it is normal as per other competitor. In term of Service is also good and I got very much satisfactory service from HDFC.
      Was this review helpful? 0
      , kanchipuram
      Reviewed on Aug 21, 2017
    • Bank Bazaar Customer Support
      "Very Good service"
      0.5 5.0/5 "Blown Away!"
      Most assuredly I would say bankbazaar service is really good also their customer care executives were very much helpful. The process was very fast when I approached bankbazaar I was personally contacted by bankbazaar executives and I guess it was purely because of bankbazaar my car loan was processed quickly by HDFC. In the near future If I need any financial assistance I would definitely make it a point to visit this site.
      Was this review helpful? 0
      , chennai
      Reviewed on Aug 21, 2017
    Common Loader Icon

    Car Loan Interest Rates is Rated as "Great!" by 28766 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

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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:

    Car Loan Interest Rates

    Bank NameCar loan interest rates

    Axis Bank Car loan
    8.75% to 11.50%

    Dena Bank Car loan
    9.15% to 9.30%

    Federal Bank Car loan
    9.75%

    HDFC Bank Car loan
    8.25% to 9%

    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
    8.95%

    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.

    Car Loan Interest Rate

    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.

    Apply for Car Loan Online
    Name of the Bank Interest Rate
    State Bank of India 9.25%
    HDFC Bank 8.25% to 9%
    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 8.95%
    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 9.10%
    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 GST, if applicable.
    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 + GST
    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

    Good News - Repo rate cuts likely to lower car loan interest rates

    EMIs paid towards a car loan will be reduced after the Reserve Bank of India cut repo rates by 25 basis points to 6%. The rate cuts will mean that the cost of credit that is required for an individual to make a big-ticket purchase will come down further. The financial sector is certain that these new changes imposed on repo rates will have a proportional effect on EMIs that are paid to repay a car loan borrowed from a lender. Lenders and banks will most likely offer festive season schemes on car loans.

    Car Loan Interest Rates - Basis for Arriving at Effective 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

    • Global Bids for Electric Cars Opened By Government

      Energy Efficiency Services Ltd. (EESL) has stated that the government is now open to receive global bids on an order of 10,000 electric sedans which can give a 150km on a single charge. This move has been made to help realize the dream of Piyush Goyal, Power Minister, of having electric cars plying on Indian roads by 2030. EESL has a plan of acquiring these vehicles in two phases with 1,000 vehicles reaching the government in the first phase. This tender will also include warranty. What’s vital to the success of this venture is the availability and easy access of charging points in the area where these vehicles are said to operate. The government will install 400 charging points at various locations in Delhi-NCR.

      18th August 2017

    • Maruti Suzuki to benefit immensely from Toyota Motor and Suzuki partnership

      The chairman of Maruti Suzuki, R.C.Bhargava, stated that the agreement between Toyota Motor Corporation and Maruti Suzuki may soon reach the finalization stage soon and this would benefit Maruti Suzuki enormously. Bhargava stated that the company will keep up with the change in technologies to meet the demands of their customers. The government has been rapidly promoting the use of Electronic Vehicles in India and this move has found the support of the company chairman.

      Bhargava also expects the recently announced GST scheme to be an important game changer to the Indian economy and industry.

      16th August 2017

    • Tesla Hands Over First Batch of Model 3 Electric Cars

      Chief Executive Officer of Tesla, Elon Musk, handed over the first batch of 30 Model 3 electric cars to employee buyers. This move sets the stage for Tesla to test their strategy of becoming a profitable electric car maker. Musk unveiled the $35,000 base vehicle outside the company’s Fremont, California factory. The car comes with a 350 kilometre range on a charge. A $44,000 version of the Model 3 is also available which gives a range of 500 kilometres on a charge. The car comes with a streamlined dashboard that’s devoid of any knobs or buttons and a 15-inch touchscreen display that’s mounted to the right of the driver. The car can be reserved by paying a fee of $1,000 that is refundable. Currently, there are over half a million reservations for the Model 3. The Model 3 is expected to be launched into the Indian market in mid-2018.

      31st July 2017

    • Mercedes-Benz requests for lower tax rates on luxury cars

      Luxury car maker from Germany, Mercedes-Benz, has made a request to the government to impose lower tax rates on luxury cars as this move would help create new job opportunities and increase tax collection in this sector. Under the new GST rates which were announced recently, luxury cars that have an engine capacity of more than 1,500cc and SUVs that measure more than 4 meters in length will attract a cess of 15% along with a top tax rate of 28%. Managing Director and CEO of Mercedes-Benz in India, Roland Folger, stated that the new rates have contributed to a loss in revenue as paying 43% as tax does not attract customers to purchase these vehicles. Folger believes that a reduction in the tax rates on luxury vehicles would double the volume of vehicles produced to meet the demand for these cars.

      Under the new GST regime, passenger vehicles will now draw a top rate of 28% and a cess that ranges between 1% and 15%. Petrol vehicles with an engine capacity of less than 1,200cc will draw a cess of 1% while diesel vehicles with an engine capacity of less than 1,500cc would attract a cess of 3%.

      24th July 2017

    • Q1 PAT of Maruti Suzuki sees an increase of 5.7%

      KRChoksey has released the earnings for the first quarter (which is April-June) for the Auto sector. The brokerage house has predicted Maruti Suzuki to report a net profit of Rs.1,570.9 crore, an increase of 5.7% year-on-year (Y-o-Y) but a 25.8% decrease quarter-on-quarter (Q-o-Q). Net Sales of Maruti Suzuki are expected to see a fall of 17.5% Q-o-Q to Rs.15,817.9 crore. Earnings before interest, Tax, Depreciation and Amortisation (EBITDA) is expected to fall by 26.1% Q-o-Q to a fall of 26.1% Q-o-Q to Rs.2,153.6 crore.

      21st July 2016

    • 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

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