Most Indians wait to buy a car or any asset during festive season as buying on particular days is considered as auspicious and luring interest rates are offered by many banks and financial institutions. Some banks even tend to waive off processing charges.
Before opting for car loans, one has to keep down payment amount ready as banks will approve loan amounts from 80%-90% depending on the bank. Interest rates may vary depending on the Cibil Score of the applicant.
While, the per centage also depends on the price of the car, type of car and whether it is applied for a new or as a pre-owned car.
The Car application requires self attested documents such as proof of income, last three pay slips, ITR acknowledgment, address and identity proof documents along with you PAN card.
Here are some best banks offering car loans:
State Bank of India
State Bank of India offers car loans with an interest rate between 9.65 per cent to 13.10 per cent and the Equated Monthly Installments will range from Rs 2108 - 2,280 per lakh. The country's largest lender charges a processing fee Rs 500 and tax.
The bank will finance On-Road price which includes Registration, Insurance and Extended Warranty/ Total Service Package/ Annual Maintenance Contract/ Cost of Accessories.
There is no pre-payment penalty or foreclosure charges applicable.
HDFC Bank offers car loans with an interest rate between 9.35 per cent to 13.75 per cent and the Equated Monthly Installments range from Rs 2,093 - 2,314 per lakh. The bank charges a processing fee around Rs 2,825-Rs 5,150.
HDFC Bank offer loan approval with 100 per cent financing with no requirement of income documents. Individuals can avail car loan for flexible tenure of up to 7 years, as per the bank's website.
HDFC Bank allows you to check loan eligibility in 1 minute and you are granted an approval of car loan in 30 minutes.
ICICI Bank offers car loans with an interest rate between 9.35 per cent to 14.74 per cent and the Equated Monthly Installments will range from Rs 2,093 - 2,365 per lakh. ICICI Bank charges a processing fee around Rs 2,500-Rs 5,000. This is much lower than that charged by HDFC Bank.
ICICI Bank offers car loans up to 100% ex-showroom price of the car, with attractive interest rates and up to 7 years tenure.
Pertinently, the bank also offers pre-owned car loans up to 80 per cent on the valuation of the car. The loans come with an attractive interest rates and loan tenure up to 5 years.
Axis Bank offers car loans with an interest rate between 9.40 per cent to 16.50 per cent and the Equated Monthly Installments will range from Rs 2,095 - 2,458 per lakh.
The Bank charges a processing fee around Rs 3,500-Rs 5,500. This is again pretty much competitive to what most other banks charge.
Eligible applicants can get up to 85% on-road funding for up to 7 years tenure and car loan value calculated on ex-showroom price of the vehicle.
Special schemes available for salaried individuals, Club 50 and Channel One Current Account customers.
Punjab National Bank
Punjab National Bank offers car loan with an interest rate between 9.60 per cent to 9.95 per cent and the Equated Monthly Installments will range from Rs 2,105 - 2,122 per lakh. This government-owned bank charges a processing fee of 1 per cent, which will be maximum of Rs 6,000, exclusive of service tax.
In July, Punjab National Bank had waived processing fee and documentation charges for new housing and car loans till September-end.
For salaried individual minimum net monthly salary or income should be above Rs 20,000.
Bank of Baroda
Bank of Baroda offers car loans with an interest rate between 9.65 per cent to 11.40 per cent and the Equated Monthly Installments will range from Rs 2,108 - 2,194 per lakh.
The Bank charges a processing fee of 0.50 per cent of the loan amount.
Car loans are available up to Rs 100 Lakhs for any car model. The Bank will not charge for prepayment.