Top 10 Banks for Car Loan in India 2019

Many financial institutions and banks in the country offer car loans for those who wish to own a car but do not wish to exhaust their savings or are unable to afford buying the car by paying fully in cash. Since there are many lenders who offer car loans in India, you may tend to get confused about which lender to pick. Hence, to make it easier for you to decide, we have listed out the top lenders in the country who offer car loans.

Top Lenders in India Offering Car Loans

State Bank of India Car Loan

Features:

• The interest rates on SBI Bank Car Loan are one of the lowest in the market and are calculated on daily reducing balance.
• SBI offers car loans under 4 categories namely, SBI New Car Loan Scheme, SBI Loyalty Car Loan Scheme, SBI Assured Car Loan Scheme, and SBI Car Loan Lite Scheme.
• Financing of up to 90% of the car’s on-road price can be availed which will include registration, cost of accessories, insurance, extended warranty, annual maintenance contract, etc.
• An optional life insurance cover is offered by SBI to its borrowers.

Name of the Car Loan	Designed For	Interest Rate (p.a.)	Minimum Income Criteria	Maximum Loan Amount
SBI New Car Loan Scheme	All borrowers	9.15% to 9.85%	Rs.2.5 lakh	48 times the net monthly income
SBI Loyalty Car Loan Scheme	SBI Home Loan borrowers	Women – 9.70% Men – 9.75%	Rs.2 lakh	Will depend on various factors
SBI Assured Car Loan Scheme	-	9.15% to 9.85%	Income declared by the applicant	No cap on the maximum loan amount
SBI Car Loan Lite Scheme	People engaged in economic activity but have no income proof	For CIBIL scores above or equal to 750 – 11.45% For CIBIL scores from 650 to 749 – 12.45%	Rs.2.5 lakh	Rs.4 lakh

Bank of Baroda Car Loan

Features:

• Offers the benefit of lower interest rates to individuals with a high credit score
• The interest rates on Bank of Baroda car loan are computed on daily reducing balance
• The bank does not charge any penalty on pre-closure of car loans
• The minimum credit score required to avail a car loan from Bank of Baroda is 725

Maximum Loan Amount	Repayment Period	Age of the applicant	Margin
Rs.1 crore	84 months	Between 21 years and 70 years	10% on the car’s on-road price

Union Bank of India Car Loan

Features:

• Applicants with good credit scores can enjoy discounts on car loan processing fees.
• Married applicants will have to be guaranteed by the spouse while unmarried applicants will have to provide a third-party guarantor.
• The Union Bank of India car loan borrower should meet the margin requirements of 15% of the vehicle’s on-road price.
• Existing customers of the banks will enjoy additional benefits from Union Bank of India

Maximum Loan Amount	Repayment Tenure	Prepayment Penalty	Age Criteria	Guarantor
Rs.125 lakh	7 years	No penalty will be charged if the borrower adjusts the loan against own verifiable legitimate sources 2% on the average balance of the previous 1 year subject to conditions	Minimum – 18 years Maximum – 70 years	Mandatory

HDFC Bank Car Loan

Features:

• The car loans offered by HDFC Bank are custom-fit to meet the requirements of the borrowers.
• Comes with flexible repayment options in the form of step-up EMI and balloon EMI.
• A comprehensive insurance cover known as Suraksha Kawach is offered with the car loans from HDFC Bank.
• Existing car loan borrowers can avail top-up loans without any documentation.

Documentation Charges	Foreclosure Charges	Part-payment Charges	Overdue EMI Interest	Collateral Charges
Rs.630 per instance	6%, 5%, and 3% of principal outstanding for foreclosure within 1 year from 7th EMI, between 13 and 24 months from 1st EMI, and after 24 months from 1st EMI respectively	5% and 3% of principal outstanding on the part payment amount done from 13 to 24 months from 1st EMI and after 24 months from 1st EMI respectively	2% per month	Rs.475 per instance

Federal Bank Car Loan

Features:

• No penalty charged for foreclosure of the car loan.
• Personal accident insurance is offered free of cost with the Federal Bank car loan up to Rs.10 lakh.
• Up to 100% of the vehicle’s ex-showroom price can be availed.
• Borrowers can get a reimbursement within 1 month from the day the vehicle was purchased.

Minimum Income of the Applicant	Repayment Tenure	Preclosure Charges	Processing Fee	Maximum Loan Amount
Rs.20,000 per month after the deduction of all EMI commitments	84 months	Nil	Rs.1,500 to Rs.2,500	100% of the car’s ex-showroom price

Axis Bank Car Loan

Features:

• Priority banking customers of Axis Bank can enjoy special benefits on car loans.
• Repayment of the Axis bank car loan can be made in 3 ways namely, electronic clearing service (ECS), standing instruction (SI), and post-dated cheques.
• The minimum amount that a borrower can avail as a car loan is Rs.1 lakh.
• Borrowers can earn Axis eDGE reward points on availing the car loan.

Maximum Loan Amount	Repayment Tenure	Documentation Charges	Foreclosure Charges	Part payment Charges
100% of car’s on-road price	Up to 8 years	Rs.500 per case	5% of the principal outstanding	5% of the part payment amount

Canara Bank Car Loan

Features:

• Known as Canara Vehicle, the car loan offered has no limit on the loan amount.
• Up to 90% of the total value of the car can be availed as a car loan from Canara Bank and this is inclusive of registration charges, invoice value, insurance premium, life tax, etc.
• To buy a new car costing up to Rs.10 lakh, above Rs.10 lakh and up to Rs.25 lakh, and above Rs.25 lakh, you will need to pay 10%, 15%, and 20% of the loan amount respectively.
• The Canara Bank car loan can be availed by all individuals, professionals, firms, etc., except for Hindu Undivided Families (HUFs).

Minimum Income Criteria	Repayment Tenure	Prepayment Charges	Maximum Loan Amount	Documentation Charges
Salaried applicants – gross salary of Rs.3 lakh p.a. Self-employed applicants – gross income of Rs.3 lakh p.a. and gross average yearly income of at least Rs.2.50 lakh	Up to 84 months	Nil	No cap on the maximum loan amount	-

IDBI Bank Car Loan

Features:

• The IDBI Bank car loan can be used to buy cars in any segment – hatchbacks, sedans, sports utility vehicles (SUVs), etc.
• The bank has tie-ups with car dealers and manufacturers to ensure the best deals to borrowers.
• The EMIs can be paid through standing instructions or ECS.
• You can expect a higher loan sanction for purchasing your dream car.

Age Criteria	Minimum Income	Documentation Charges	Foreclosure Charges	Repayment Tenure
Minimum age – 18 years Maximum age – 70 years	Rs.2.4 lakh p.a.	As per actual cost	1% of balance outstanding after 6 months of loan disbursement	7 years

Punjab National Bank Car Loan

Features:

• The bank has partnered with leading car manufacturers such as Tata Motors, Honda Cars India, Maruti Suzuki India, Mahindra & Mahindra, and Force Motors Ltd., to offer best deals on car loans.
• The bank offers both fixed and floating interest rates on the car loan.
• A collateral security or third-party guarantee must be provided to avail a Punjab National Bank car loan but based on an individual’s merit, this condition can be waived off.
• For the benefit of government employees, Punjab National Bank offers car loan under the name ‘PNB Pride Car Loan’.

Maximum Loan Amount	Margin	Repayment Tenure	Documentation Charges	Prepayment Charges
Rs.100 lakh or 25 times of pension income/net monthly salary, whichever is lower	15% of the vehicle’s on-road price	84 months	Up to Rs.6 lakh – Rs.1,000 Above Rs.6 lakh – Rs.1,500	Floating Rate – Nil Fixed rate – 2% on the outstanding prepaid amount

Syndicate Bank Car Loan?

Features:

• A third-party guarantee is not required to avail the Syndicate Bank car loan, also known as ‘SyndVahan’.
• All individuals, partnership firms, proprietorships, trusts, societies, directors/employees of the corporates, other legal entities except for HUFs, are eligible to avail the loan.
• An amount of Rs.10,000 is also offered to car loan borrowers for the purchase of car accessories.
• Borrowers whose salary is credited to their Syndicate Bank accounts will enjoy discounts on car loan interest rates.

Maximum Loan Amount	Minimum Income	Repayment Tenure	Documentation Charges	Inspection Charges
85% of the vehicle’s on-road price or 3 times the gross annual income, whichever is less	Rs.2 lakh p.a.	84 months	Up to Rs.2 lakh – Nil Above Rs.2 lakh – Rs.100 per lakh (maximum-Rs.1,250)	Up to Rs.1 lakh – Rs.250 per inspection Above Rs.1 lakh – Rs.500 per inspection

The above list should have given you a fair idea about the benefits and features offered by various lenders on their car loans. You can now go ahead and make an informed decision on which lender you should pick to fund the purchase of your dream car.