To make a wise decision it is always a good idea to compare the interest rates, calculate the EMIs and consider different tenures to check the financial liability before taking a final call.
Planning to buy your own vehicle with advanced features? Many people plan to buy their car in the beginning of a new year owing to new launches and attractive offers that car makers line up for customers during this time.
Car loan plays a key role to help us arrange funds for a new vehicle. Be it buying a new car or upgrading, you should carefully evaluate all the pros and cons. When you apply for a car loan, you make a down payment and the remaining amount is paid by the banks. A borrower pays the car loan in instalments along with the interest. The loan amount can be decided based on your fund requirements, monthly income, and credit score.
Car loans can help you purchase your dream car even if you don’t have the money upfront. EMIs with reasonable interest rates make car loans accessible to all those who wish to own a vehicle. When it comes to tenure, people mostly choose up to 5 years. However, some people go for car loans beyond 5 years as well to pay lower EMIs or when they need a higher amount car loan.
Many banks offer flexible tenures and even allow you to choose the tenure that best suits your requirements. Options to choose payment modes, whether it is automatic debit of monthly payments from your bank account or post-dated cheques, are also available to customers. It is advisable to pick up the right type of car loan, but some people find it difficult. To make a wise decision it is always a good idea to compare the interest rates, calculate the EMIs and consider different tenures to check the financial liability before taking a final call, according to Bankbazaar.
Car loans are mostly for short terms so you can even consider prepayment when you have additional money to do so. While taking a car loan, besides interest rates, you must also check flexible tenure options, flexible monthly instalments options and other features.
Several banks are offering lucrative interest rates on car loans. You can choose as per your own requirements. Currently the interest rates are low and if your credit score is above 750, then the chance of you getting the best deals also increases. A piece of advice is that you should pay your car loan EMIs on time to avoid late penalty charges and getting classified as a defaulter. If you don’t pay back, the banks can seize the car to recover the outstanding dues.
Below are the banks offering lucrative deals on interest rates to customers who are planning to take a car loan. You can compare and take a decision that fits your requirements.
Interest Rates & EMIs on New Car Loan of Rs 10 Lakh for 5-year Tenure
Compiled by BankBazaar.com
Note: Interest rate on Car Loan (Excluding e-vehicle) for all listed (BSE) Public & Pvt Banks considered for data compilation (Excluding small finance banks); Banks for which data is not available on their website, are not considered. Data collected from respective bank’s website as on 02 Feb 2022. Banks are listed in ascending order on the basis of interest rate i.e. bank offering lowest interest rate on Car loan is placed at top and highest at the bottom. Lowest interest rate offered by the banks irrespective of loan amount is shown in the table. EMI is calculated on the basis of Interest rate mentioned in the table for Rs 10 Lac Loan with tenure of 5 years (processing and other charges are assumed to be zero for EMI calculation); Interest mentioned in the table is indicative and it may vary depending on bank’s T&C. * min Interest as per APR in Qtr ended in Dec 2021; ^ Rack Interest Rate.
