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Car Loan Interest Rates in January 2020. SBI, ICICI, PNB, HDFC Car loan

Car Loan Interest Rates in January 2020. SBI, ICICI, PNB, HDFC Car loan

Car Loan Interest Rates in January 2020 with Processing Fees as offered by from SBI, ICICI, PNB, HDFC, Union Miles, Allahabad Bank, IDBI as Leading PSU, Private Banks in India

 

Car Loan Rates, Process in January 2020

Car Loan accounts for 3/4th Sales of New Car Segment in India with Private Banks like ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank along with PSU Bank like SBI, PNB account for over 80% of Auto Loan Market in India. If you want to know process of Car Loan then there are 3 steps for Car Loan 

» Pre Approval Documents - Here in you submit your Income Documents with Bank Statement of last 6 months along with KYC Documents (ID Proof, Address Proof, Signature Proof, 2 Photographs) with previous loan details (if any), Business / Job Continuity Details and if residence owned with ownership proof documents 

Bank will then conduct necessary checks including Field Verification, Document Verification and assess Credit Report to determine Eligibility

» Post Approval Documents - Once loan sanctioned, can sign in Loan Agreement, hand over Margin Money Receipt with Invoice, submit in ECS Mandate with Security PDC for essentially loan disbursement

» Loan Disbursement - The Bank will process the loan for final disbursement after deducting loan processing fees and make payment is done to Dealership through RTGS. A message is also sent to customer informing the loan disbursement.

 

Car Loan Interest Rates in January 2020

Below are Car Loan Interest Rates in January 2020

Bank Car Loan Interest Rate in January 2020 Loan Processing Fees
Union Bank of India (Union Miles Car Loan) 8.6% (if CIBIL score > 700) else 8.7% Rs 1180 including GST
     
SBI Car Loan - Fixed Interest Rate 90% On Road Finance for 5 Year - Reduced in January 8.65% (if Credit Score is > 750 or Corporate Salary Account Holder), 8.9% (if Credit Score is > 700 but < 750), else 9.15%. Finance upto 90% of On Road Price and available for extended period of 8 Years. However, Concession of .25% on above rates if applied Car Loan through SBI Yono app .51% of Loan Amount + GST
     
SBI Car Loan Fixed Interest Rate - for 6 year and 7 Year - Reduced in January 8.75% (if Credit Score is > 750 or Corporate Salary Account Holder), 9% (if Credit Score is > 700 but < 750), else 9.25%. Finance upto 90% of On Road Price and available for extended period of 8 Years. However, Concession of .25% on above rates if applied Car Loan through SBI Yono app .51% of Loan Amount + GST
     
IDBI Bank - Floating Rate 8.85% (CIBIL > 800), 8.95% (CIBIL > 750), 9.05% (CIBIL > 700), 9.45% (less than 700 score) Rs 1180 including GST
     
PNB Car Finance - Fixed Interest Rate 9.1% Rs 1180 (for Loan upto 6 Lakh). Rs 1770 (> 6 Lakh Loan)
     
IDBI Bank - Fixed Rate 9.2% (CIBIL > 800), 9.3% (CIBIL > 750), 9.4% (CIBIL > 700), 9.8% (less than 700 score) Rs 1180 including GST
     
Allahabad bank Dream Car Loan. 85% / 7 Year for Individual. 85% / 5 Year for Companies 9% Onwards which Varies basis Credit Rating and External Benchmark Repo Rate to as high as 10.25% for Salaried and 10.75% for Self Employed  .5% of Loan Amount + GST
     
Private Banks - ICICI, HDFC Bank ** - Pre Approved offers for existing Bank Account Holders, Low Documentation 9.26% (Above 20 Lakh Loan), 9.51% (10 Lakh to 20 Lakh Loan), 9.75% (5 Lakh - 10 Lakh Loan), 10% (under 5 Lakh Loan) Rs 2500 - 6000

 Interest Rates, Processing Fees subject to change as per sole discretion of Bank. While PSU Banks primarily offer Floating Rate of Interest, Private Banks offers Fixed Rate of Interest

** - Indicative rates of Private Banks, subject to vary basis Profile, City Location

 

Basic Eligibility of Car Loan

» Minimum 2 Year Work Experience for Salaried / 3 Year for Self Employed & Net Home Take Salary at Minimum to be Rs 20,000 per month after deducting Taxes, PF. While for Self Employed 3 Lakh ITR is considered bare basic. Check

» The Maximum Car Loan Amount with most the Banks is restricted to 3 Times the Net Annual Income or Net Annual Salary subject to maximum Proposed Car Loan EMI combined along with all other EMI running is less than 50% of Net Monthly Salary.

» 6 Month Salaried / Current Account Bank Statement with no more than 2 cheque return

» KYC, Income and Banking Documents. For list refer - Car Loan Documents

» If Rented then atleast 2 year in City with Permanent Address Proof with Landline Number

» For Self Employed, Office address proof with Landline Telephone Number required

To Compare any Car Loan Deal - You should compare in Loan Amount, Interest Rate, Tenure, EMI, Advance EMI to be paid, Processing Fees, Loan Disbursement Amount. If all these details are compared in then only can get to know whether the deal is competitive enough or not.

The Biggest Difference in between PSU Bank and Private Banks is the Flexibility of Part Payment after 1 year, Floating Rates and Fixed Rate Difference, Daily Reducing Balance in PSU Banks against Private Bank which do not offer daily reducing Balance.

 

Several Car Loan Schemes - Customize

If you want a customize Car Loan can approach Private Banks like HDFC Bank, ICICI Bank offering these schemes

Car Loan - Step Up Scheme

Customized Scheme wherein Loan EMI is increased by 10% every 12 month. Ideal for Salaried, where they would like to take least burden in Initial years, and when salary increases can pay up higher EMI in later years. For eg for a 5 year loan - wherein income levels are low and one wants a lower EMI in initial 1st year or second year - can opt in for Step Up Scheme

Car Loan Bullet EMI Scheme

Mainly meant for salaried class, where they would like to pay off lower EMI for 11 month and 12th EMI as Bulk EMI from the annual bonus they get. This thus make Loan EMI more affordable. Herein 11 EMI are subdued and Every 12th EMI is Bullet EMI - generally 10% of loan amount - implies a bulk payment - which a salaried class can set off as from its annual bonus.

Car Loan Balloon EMI Scheme

Herein the last EMI is the bulk EMI and is normally 30% of the loan amount. Rest - 35 EMI or say 59 EMI will constitute 70% of loan amount. Its aimed at having lower EMIs during course of tenor and deferring the max payment in the last EMI. Particularly useful wherein one looking to sell his car at end of tenor and can square off the last EMI against sale of car proceeding.

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Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments

 

Comments 6

Guest - AMIT KUMAR on Wednesday, 02 October 2019 08:44

I NEED CAR LOAN FOR 5 YEARS .TOTAL AMOUNT APPROX 500000 LAC MY SBI REWARDS POINT 1300

I NEED CAR LOAN FOR 5 YEARS .TOTAL AMOUNT APPROX 500000 LAC MY SBI REWARDS POINT 1300
Guest - Nitesh on Sunday, 22 September 2019 02:10

Great info

Great info
Guest - manojkumar on Wednesday, 11 September 2019 13:47

Really updated info , sound very use ful for new buyers

Really updated info , sound very use ful for new buyers
Guest - Abdullah on Saturday, 07 September 2019 01:10

I need car loan at 0 Interest rate for 5 years

I need car loan at 0 Interest rate for 5 years
Guest - SakthishaTharsi on Tuesday, 02 July 2019 15:51

Thanks for this post.I need more details for Car Loan Interest Rates ?

Thanks for this post.I need more details for Car Loan Interest Rates ?
Guest - Sneha Sharma on Thursday, 28 March 2019 15:29

:) Very Informative blog! Thanks for sharing

:) Very Informative blog! Thanks for sharing
Guest
Saturday, 25 January 2020

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