It’s a unique feeling to bring your brand-new car home during festivals. Your car-buying process would be easier than ever if you have all the information handy. Many banks offer flexible payback terms, affordable EMIs, and 100% financing on a few vehicles. Compare the interest rates offered by various banks before finalising the loan.
With upcoming festive such as Dussehra, Diwali, many banks are offering special offers such as reduced interest rates on car loans, processing fees are waived, and exclusive freebies and discounts are offered.
Read More: 5 key tips to secure the best interest rates on personal loans
What is the minimum credit score I need to get a Car Loan?
According to the HDFC Bank website, “There’s no specified minimum credit score for getting a Car Loan from HDFC Bank. But a lower credit score can reduce the loan amount you can get. A credit score above 750 is considered excellent for loans. This will allow you to get a higher loan amount at the most affordable car loan rates.”
The interest rates on auto loans are known as annual percentage rates, or APRs, and they depend on a number of variables, such as your income, debt, credit score, car value, loan amount, loan length, and RBI repo rate. The price of the car may affect the rate even when the kind does not directly affect it.
Read More: No change in home loan EMIs as RBI keeps repo rate unchanged for 10th time in a row
Here are the interest rates for a car loan with an EMI (Rs) of Rs 5 lakh and a tenure of 5 years.
| Name of Lender | Interest rate (%) | EMI (Rs) | Processing fee |
| Loan amount-5 lakh | (% of loan amount) | ||
| Tenure-5 years | |||
| Union Bank of India | 8.70 – 10.45 | 10,307 – 10,735 | NIL |
| Punjab National Bank | 8.75 – 10.60 | 10,319 – 10,772 | 0.25% (Rs. 1,000 – Rs. 1,500) |
| Bank of Baroda | 8.95 – 12.70 | 10,367 – 11,300 | Up to Rs 750 |
| Canara Bank | 8.70 – 12.70 | 10,307 – 11,300 | NIL |
| Bank of India | 8.85 – 12.10 | 10,343 – 11,148 | 0.25% (Rs. 1,000 – Rs. 5,000) |
| UCO Bank | 8.45 – 10.55 | 10,246 – 10,759 | Nil |
| State Bank of India | 9.05-10.10 | 10,391-10,648 | NIL |
| IDBI Bank | 8.80 – 9.65 | 10,331 – 10,294 | Rs 2,500 |
| Bank of Maharashtra* | 8.70 – 13.00 | 10,307 – 11,377 | NIL |
| Indian Overseas Bank** | 8.85 – 12.00 | 10,343 – 11,122 | 0.50% (Rs 500 – Rs 5,000) |
| ICICI Bank | 9.10 onwards | 10,403 onwards | Up to 2% |
| HDFC Bank | 9.20 onwards | 10,428 onwards | Up to 1% (Rs 3,500 – Rs 9,000) |
| Karnataka Bank | 8.88 – 11.37 | 10,350 – 10,964 | 0.60% (Rs 3,000 – Rs 11,000) |
| Federal Bank | 8.85 onwards | 10,343 onwards | Rs 2,000 – Rs 4,500 |
| Punjab and Sind Bank*** | 8.85 – 10.25 | 10,343 – 10,685 | 0.25% (Rs. 1,000 – Rs. 15,000) |
| South Indian Bank | 8.75 onwards | 10,319 onwards | 0.75% (Max: Rs 10,000) |
| IDFC First Bank | 9.60 onwards | 10,525 onwards | Up to Rs 10,000 |
| City Union Bank | 9.90-11.50 | 10,599-10,996 | 1.25% (Min: Rs 1,000) |
Read More: SBI Special Fixed Deposits: SBI Amrit Kalash, Amrit Vrishti schemes get another extension
*0.25% interest rate concession for existing housing loan borrowers and corporate salary account holders.
**0.50% interest rate concession to borrowers with credit scores of 800 and above. Interest rate concession of 0.25% to borrowers having credit scores of 750-799.
***Concession of up to 50% on processing fee for PSB Apna Vahan Sugam.
Rates and charges as of 8th October 2024.
