Want to opt for car loan? These banks are offering lowest interest rates

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If you currently don’t have the required amount to buy your desired car, then a car loan is very helpful in making the purchase affordable. These days, we have the availability of various national banking institutions, financers, and non-government financing organisations, which make it easy for you to buy your dream car.

But before taking a loan, you need to compare the interest rates and other features of loans provided by different lenders to get the best deal. Also, keep in mind the various expenses you are going to incur when you finalise the car loan. If you are planning to take a car loan, then check out the banks which are offering lowest interest rates.

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Here is a list of 10 banks which are providing lowest car loan interest rates, according to bankbazaar.com:

Central Bank: 7.9 percent

State Bank of India: 8.05 percent

ICICI Bank: 8.25 percent

Bank of India: 8.3 percent

HDFC Bank: 8.35 percent

Punjab National Bank: 8.35 percent

Punjab & Sind Bank: 8.4 percent

Axis Bank: 8.4 percent

Bank of Baroda: 8.45 percent

Union Bank: 8.45 percent

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Factors which are responsible for affecting the car loan interest rates:

1. Eligibility criteria plays an important role in determining the total interest rate that will be levied on the loan.
2. You will need to pay more interest if the repayment term is more.
3. If you have a higher credit score, then lower interest rates will be charged because the risk factor will be less.
4. Salaried employees have to pay less interest. On the other hand, self-employed individuals need to pay higher interest.
5. If you select a fixed interest, the payment is going to be more than the floating interest.

EMI calculator:

The best way to calculate EMI based on the car loan interest rate is to take the help of an online calculator. You can find several calculators provided on the websites of different banks. You will come across the calculator inputs once you enter the site. Here, you will have to give values for the loan amount you wish to take, the car loan interest rate this year, and the total tenure you wish to pay EMIs for. The monthly instalments will be displayed after you click on the calculate button.