Interest rates are set to rise as the Reserve Bank of India (RBI) last week hiked repo rates. These are rates at which RBI lends money to banks. Here is a quick look at interest rates on car loans from the various banks.
Largest financier in the car loan segment
Largest financier in four-wheeler passenger vehicle segment, ICICI Bank offers a maximum car loan of 90% of ex-showroom price. With an option to service the loan in as many as 5 years, the bank offers financing facility for new cars with fixed interest rate option only. The interest for a 5 year loan tenure is 10.75%. Besides you have to dole out some amount towards processing, documentation charges and other fees.
Allows a car loan repaymnet term of 7 years
The public sector OBC offers finance for new car on the base rate i.e. the lending rate decided by the bank plus some additional rate depending on the loan tenure. For a loan tenure of a maximum of 3 years, OBC charges base rate i.e. currently 10.25% + 0.50% = 10.75%. While for a tenure of upto 7 years, the bank currently charges 11.00%, which is 0.75% higher than the base rate.
Uniform car loan rate of 0.25% higher than the base rate
The bank disburses car loan for all borrowers at a uniform fixed rate of 10.50% i.e. 0.25% more than the base rate. The loans can be serviced in a maximum term of 5 years.
Rate of car loan same across all tenures
he largest public-run bank is offering car loans @ 10.75% i.e. 0.95% more than the base rate of the bank of 9.80%. The rate of interest is applicable across all tenures. Only lately, the bank has come with a ruling that if you are into service in some private firm you need to have a minimum gross annual salary of Rs. 6 lac to avail car loan facility.
Interest rate varies with the tenure
PNB offers loans on new cars @ base rate + 1% for less than 3 years loan tenure. For loan tenure over 3 years, the bank charges 1.5% higher than the base rate i.e. currently 10.25% with effect from February 9, 2013.
Interest rate on new car loan is uniform across different repayment periods
Irrespective of the tenure in which the sanctioned loan amount would be serviced, BOB charges 10.50% i.e. 0.25% higher than the base rate of 10.25%.