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Top 5 Banks Promising Cheapest Interest Rates On Car Loans

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Because buying a car is a large investment, many of us are interested in seeking a car loan to fulfil our driving dreams, particularly because these financing options often have better interest rates than an unsecured personal loan. Keep in mind that lenders often give loans up to 80%-90% of the vehicle's on-road price. In particular, car loans are often offered for up to seven years. Although represented as a secured loan, the lender determines the suitable car loan interest rates depending on the borrower's credit score and other elements. If you're looking to buy a new car in the coming days, we've developed a set of 10 government and private banks that are now giving some of the lowest new car loan interest rates for a loan amount of Rs 10 lakh in the country.

 

Top 5 Banks Promising Cheapest Interest Rates On Car Loans

Top 5 Public Sector Banks Giving The Lowest Interest Rates On Car Loan

Here are the top 5 government banks in the country that are currently promising the lowest interest rates on car loans.

BanksRate of interest
Punjab & Sind Bank7.00%
Central Bank of India7.25%
Bank of Baroda7.25%
Canara Bank7.30%
Punjab National Bank7.30%
Source: Bank Websites

Top 5 Private Sector Banks Providing The Cheapest Rates On Car Loans

Below are the top five private sector banks in the country now offering the best car loan interest rates.

BanksRate of interest
IDBI Bank7.50%
ICICI Bank7.90%
Karur Vysya Bank7.90%
HDFC Bank7.95%
Dhanlaxmi Bank8.10%
Source: Bank Websites

Note

A processing fee is also levied, which is normally determined by the lender's regulations. Nonetheless, a few banks provide car loans to existing customers at discounted rates. Many banks now provide pre-approved car loans to a limited group of customers, which may include lower interest rates and faster loan disbursement. As a result, comparing current vehicle loan offers from several lenders to discover a rate that best matches your financial needs is always important. Please keep in mind that we only evaluated each lender's lowest stated interest rate; the interest rate that applies to you may be higher based on your loan amount, credit score, profession, or any other terms and conditions of your preferred bank.

Read more about: car loans
Story first published: Thursday, May 27, 2021, 16:16 [IST]
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