• Best Car Loans 2020

    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.

    How do you pick the best car loan?

    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.

    • As a thumb rule, borrowers should choose a car loan that suits the model of the car purchased and also according to the repayment capability of the individual.
    • Salaried employees can get higher loan amounts based on their annual income, with banks approving loans based on that amount. So, individuals should choose a loan that offers them the maximum quantum of loan.
    • Certain factors like down payment amount and loan margin also should be considered. A higher down payment amount would help a borrower save on interest rates and also complete his debt sooner than expected. Loan margin is the borrower’s share that has to be put in while taking the loan. Borrowers should choose a lender who is quite flexible with regards to the loan margin.
    • As far as interest rates are concerned, floating interest rates work well for a borrower, as market fluctuations and rate reductions might be beneficial in the long run.
    • Banks generally offer loans up to 80% or 90% of the vehicle value. This might vary on an individual basis and also on the type of car bought.
    • While choosing the tenure of the car loan, borrowers must ensure that the bank offers flexible tenures, which can be altered if part-payments are done.
    • Other types of charges that are levied along with a car loan like processing fees, documentation fees, prepayment fees, etc., should also be evaluated before confirming on the required deal.

    Top Car Loan Schemes

    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 Loan

    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 Car Loan

    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 Car Loan

    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.

    HDFC Bank Car Loan

    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.

    Bank of Baroda Car Loan

    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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