The automobile industry has seen a drastic increase in demand for private cars, with more and more consumers opting to take this up as their daily mode of transport. Owning a car is no longer considered a privilege, it is more of a necessity today. With the market flooded with a plethora of car financing options, consumers in India generally have a tough time selecting the right kind of loan for themselves. An ideal car loan deal would include benefits like low interest rates, flexible tenure options, flexible monthly installments options and the feature to choose either a fixed or floating interest rate, as per the need of the customer. There are private and public sector banks, captive lenders, NBFCs, etc., offering multiple auto loan deals in India. While picking a car loan deal, a customer should make sure he compares a few schemes, analyses the benefits offered and then makes the right decision.
Picking the right type of car loan can be a difficult task. But knowing what is required according to the type of car purchased will always help a borrower make the correct decision. Here are a few tips to help borrowers zero in on the best deal.
In the current scenario, with competitors lined up, banks vie with each to offer the best deals to their customers. Car loan deals come with features like instant e-approvals, lowest interest rates, flexible repayment tenures, approval of higher loan amounts (some even up to 100%) and covering the widest range of vehicles.
Here is a list of the best car loan deals offered by top banks in India.
SBI car loans are available with low interest rates, flexible tenures, no advance EMI requirement, no pre-payment charges and an optional SBI Life insurance cover for the borrower. SBI offers financing on the on-road price of the new vehicle and an overdraft facility, as well. Repayment tenure can be taken up to a flexible period of 84 months.
ICICI Bank offers maximum flexibility with regards to tenure and repayment of the car loan. Customers can take loans for up to seven years at attractive interest rates. Existing customers of ICICI Bank can get pre-approved car loans with minimum documentation requirements. ICICI sanctions loans for up to 100% of the ex-showroom price of the vehicle.
Canara Bank provides car loan deals at low interest rates, customizing according to the type of borrower. Having one of the lowest processing charges at 0.25%, a Canara Bank car loan can be availed by all types of borrowers including single borrowers, institutions, firms and companies. Repayments can be done as monthly instalments with tenure ranging up to 84 months. Canara Bank approves loan amounts to up to 90% of the vehicle cost, depending on the type of vehicle bought.
The best feature about a HDFC car loan deal is that it offers financing up to 100% of the vehicle value. Additionally, car loan approvals will be done by HDFC in just 30 minutes, with the promise of hassle-free loan processing. HDFC car loans are available with fixed interest rates and come with flexible repayment tenures of up to seven years. Salaried applicants can get loans up to six times their annual income, with the maximum loan amount being Rs. 1.5 crore. Additionally, applicants can fast track their car loan approvals by choosing the right type of plan based on the category of applicant they fall under.
Car loans availed from Bank of Baroda come with a plethora of benefits like flexible tenures up to 84 months, interest rate concession for existing home loan borrowers and for applicants who submit 50% liquid security collateral. The maximum loan amount that will be sanctioned by Bank of Baroda will be up to Rs. 100 lakhs.
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