Considering to Buy Car on Finance. Know how to Compare to get Lowest Car Loan Rates in India
Car Loan Rates Comparison
Before buying any Car on Finance its important to know that Car Loan Interest Rates works on 2 Important Considerations
- Floating Rate: Here Car Loan Rates are link to external benchmark rates (as RRLR, EBLR etc), and with any fluctuation in these external benchmark rates - the interest calculation from that date would be done as per revised rates. So, if these average benchmark rates increases over your loan tenure then your interest outflow will be higher and be asked to pay in difference of add on interest after loan tenure for closure of Finance
- Fixed Rates: Here in Interest Rates are fixed and your EMI and Interest outflow will not change due to fluctuations in rate
| Floating Rate | Fixed Rate |
| Bank of Baroda | ICICI Bank |
| Union Bank of India | HDFC Bank |
| PNB | Axis Bank |
| IDBI Bank | SBI |
| Punjab & Sind Bank | Punjab National Bank |
| Central Bank of India |
Floating Rate or Fixed Rate for Car Finance:
Considering fact that Interest rates have almost bottomed out and at its lowest level of last 15 years, if your financng horizon to be for long term essentially means 5 years to 7 years then Fixed Rate of INterest is a better choice
However, for short term loan tenure of 3 years or at max 4 years may consider in Floating Rate of Interest. Reason for choosing Floating rate is that they are charged generally lower as against Fixed Rate
As of now in Floating Rate
- Punjab & Sind Bank - Charge Interest rates startsing from 7% and varies based on CIBIL Score
- Central Bank - Starts at 7.25%
- Bank of Baroda, Canara Bank - Start at 7.3%
While in Fixed Rate
- SBI - Charges Interest rate starting from 7.5% (Yono app) / 7.75% (Dealer) in Fixed Rate Scenario
- ICICI, HDFC Bank - Starts at 7.6%
- Kotak Bank - Starts at 7.5%
So how to Compare Car Loan Deal
Compare these 10 Aspect before Choosing Car Finance
New Cars
Check Prices with Complete Features
- Loan Amount
- Loan Tenure
- Interest Rates
- Nature of Interest Rates (Fixed or Floating)
- Monthly EMI
- Advance EMI (if any)
- Processing Fees (if any)
- Loan Disbursement amount to Dealer
- Prepayment Terms and Charges
- Loan Foreclosure Charges and Flexibility on same
If you follow these 10 Components - you will by sure Compare in to have the best Car Loan for your need, requirement
