Compare Car Loan Interest Rates in September 2023. Latest Car Finance Schemes from SBI, PNB, ICICI Bank, HDFC Bank, Union Miles as Leading PSU, Private Banks in India
Car Loan is what driving Sales of New Cars in India. Thanks to
Over 70% of Cars sold in India every month are bought on Finance. Private Banks like ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank along with PSU Bank like SBI, PNB account for Majority of Car Finance Market in India.
Essentially 3 Stages
» Pre Approval Process - Here in you submit your KYC Documents for Car Loan:-
essentially Aadhaar, PAN Card and Passport Size Photographs as KYC Documents
along with Income Documents
and latest 6 Month Bank Statement along with 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 Process - 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.
Bank of Baroda and Union Bank Offering Car Loan at lowest rates with Finance now begins from just 8.75% pa (in September 2023)
Also, best part is that there is no differentiation in Interest Rates basis Car Model type, unlike Private Banks which charges premium on 'A' and 'B' Segment Cars as against high end cars.
Below are Car Loan Interest Rates Scheme in September 2023
|Bank||Car Loan Interest Rate in September 2023||Car Loan Processing Fees|
|Bank of Baroda - Choice of Fixed, Floating Rate||8.75% to 11.15% - depending on CIBIL Score (Fixed) / 8.85% to 12.15% (Floating Rate)||Rs 1500 (Upto 10 Lakh) / Rs 2000 (Above 10 Lakh). Additional GST|
|Union Bank - Union Miles Car Loan on Floating Basis||8.75% (if CIBIL is 800 or above), 8.85% (CIBIL > 750 but < 800), 9 to 9.4% (CIBIL in 731 to 749 basis loan Funding), 9.35% to 9.4% (CIBIL in 700 to 730 basis loan funding), 9.45% to 9.5% (CIBIL in 650 to 699 basis loan funding)||No PF, No Foreclosure charge if foreclosed using own funds|
|SBI Car Loan - Fixed Interest Rate||8.8% (If Credit Score is 775 or higher), 8.9% (if Credit Score is > 757 but < 775), 9.15% (if Credit Score is > 720 but < 756), 9.4% (if CIBIL> 688 but less than 721), else 9.6%. Further Special Waiver of 15 bps on EV Cars . Premium of 10 bps Charged if Extended Loan Tenure of 6 yrs and 7 yrs taken.||100% Processing Fees Waiver during Festive Special Offer by State Bank of India|
|PNB Car Finance - under Floating Rate Option for Women and Corporate Account Holders||8.75% (for EV Cars) / 8.8% (Other Internal Combustion Engine Cars)||.25% of Loan Amount + GST (Minimum – Rs. 1000/- Maximum Rs. 1500/-)|
|PNB Car Finance - under Floating Rate for Other Profiles||8.8% (CIBIL > 750), 9.25% (CIBIL >= 700 but less than 750), 9.6% (for CIBIL under 700). EV Car Buyers have 5 bps rebate in Interest Rate||.25% of Loan Amount + GST (Minimum – Rs. 1000/- Maximum Rs. 1500/-)|
|PNB Car Finance - Fixed Rate Scheme||8.95% (3 yr to 5 yrs) / 9.05 % (> 5 yr Loan). EV Car Buyers gets 5 bps rebate||(Minimum – Rs. 1000/- Maximum Rs. 1500/-)|
|Bank of Baroda - Floating||Interest Rate Starting from 8.85% onwards for CIBIL > 771 and varies basis CIBIL Score to as high as 12.15%. Floating Rate Offered. Premium of .05% Charged in Interest Rate if not taken with Loan Risk Insurance Cover||Rs 1500 (Upto 10 Lakh) / Rs 2000 (Above 10 Lakh)|
|Bank of India - Floating||8.85% (CIBIL>800), 9.05% (CIBIL > 750), 9.25% (CIBIL > 700), 10.85% (CIBIL less than 700)||Pls contact Branch|
|Punjab & Sind Bank - Floating||9.05% (CIBIL > 768), 9.15% (CIBIL > 752 but less than 768), 9.35% (CIBIL > 732 but less than 752). 9.7% (CIBIL > 690). Linked to EBLR, Floating Rate||.25% of Loan Amount + GST|
|Canara Bank - Floating rate||8.9% to 11.55% (Prime Customer for loan above 15 Lakh). Else from 9.3% to 11.95% basis Credit Rating (for loan under 15 Lakh). Floating Rate||50% Off on Processing Charges till 31st September (Regular Charge is .25% of Loan Amount + GST with maximum Rs 5000)|
|IDBI Bank - Floating Rate||8.8% to 9.6% Interest Rate - depending on CIBIL Score||Rs 2500 + GST|
|ICICI Bank ** - Fixed Rate||8.75% to 10% (basis Car Category, Loan Amount. Small Cars carry higher rate, while Premium Cars carries lowest rate)||Rs 5500 (Preapproved Customers) / Rs 8000 (Normal Process)|
|HDFC Bank ** - Fixed Rate||8.75% to 10% (basis Car Category, Loan Amount. Small Cars carry higher rate, while Premium Cars carries lowest rate)||Rs 4200 (HDFC Zip) / Rs 8000 (Normal Process)|
|Axis Bank ** - Fixed Rate||8.5% to 10% (basis Car Category, Loan Amount. Small Cars carry higher rate, while Premium Cars carries lowest rate)||Rs 4700 - 7000 (based on loan amount)|
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 and Sourcing Channel
» 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.
If you want a customize Car Loan can approach Private Banks like HDFC Bank, ICICI Bank offering these schemes
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
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.
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.
Pls Suggest Fixed interest Rate or Floating interest rate is better considering future elections in 2024 in maharashtra
I checked and found that SBI is offering lowest interest rates on Maruti Baleno
While ICICI, HDFC charging 9%, but SBI offering at 8.5%
I WANT NO COST EMI. GIVE ME 14 LAKHS LOAN WITH 0% INTEREST, I WILL WISH GOOD FOR YOUR BANK ALWAYS I PROMISE
Sir i want to purchase the car but i recently joins a company so i have only 3 months salary slips
but i can pay the 50% of the car amount as down payment
so will i get a loan ?
Thanks for the informative blog.
Please guide if it is possible to buy a car from one particular state and get it registered in a different state?
Eg I am located in mumbai . I want to buy scross from mumbai but get registration of Chandigarh as it is my home place . Also I will save on money .
I was looking for this information relating to such my car helpline. You have really eased my work by posting this article, loved your writing skill as well. Please keep sharing more, would love to read more from you!