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Car Loan Interest Rates in February 2024. Bank Wise Comparison

Car Loan Interest Rates in February 2024. Bank Wise Comparison

Compare Car Loan Interest Rates in February 2024. Compare Car Loan Schemes from SBI, PNB, ICICI Bank, HDFC Bank, Union Miles as Leading PSU, Private Banks in India

 

Compare Car Loan Interest Rates Schemes in February 2024

Car Loan is what driving Sales of New Cars in India. Thanks to

  • Simplified Documents (KYC, Income Documents and Bank Statement with Residence Proof, Employment Details)
  • Lowest ever Interest Rates as prevaling in Last 15 Years and
  • Quick Turn Around Time in Approval and Approval to Disbursement happening in under 2 days

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.

 

Car Loan Process, Documents

Essentially 3 Stages 

» Pre Approval Process - Here in you submit your KYC Documents for Car Loan:-

  • ID Proof
  • Address Proof
  • Signature Proof
  • 2 Photographs

essentially Aadhaar, PAN Card and Passport Size Photographs as KYC Documents 

along with Income Documents

  • Last 2 Year Form 16 with Latest 3 Month Salary Slip (Salaried)
  • Last 3 Year Business ITR with Computation (Self Employed)

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.

 

Car Loan Interest Rates in February 2024 - Bank Wise Comparison

SBI Car Loan Interest Rates, Eligibility in January 2020

Bank of India offering Car Loan at lowest rates with Finance now begins from just 8.75% pa (in February 2024) and even offering 100% Processing Fees waiver till 31st March 2024.

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 Bank Wise Comparison of Car Loan Interest Rates Scheme in February 2024

Bank Car Loan Interest Rate in February 2024 Car Loan Processing Fees
Bank of India Floating 8.75% (CIBIL >= 825), 8.85% (CIBIL>=800 to 824), 8.85% (CIBIL >= 760 and 799), 8.95% (CIBIL >= 725 and less than 760), 9.35% (CIBIL less than 725) Waiver till 31st March 2024
     
Bank of Baroda - Choice of Fixed, Floating Rate 8.8% to 12.1% (Fixed Rate) / 9.4% to 12.25% - depending on CIBIL Score (Floating Rate). Additional 5 bps (Fixed) / 25 bps (Floating) if Credit Risk Insurance not taken with Car Loan NIL for Select Profiles (Branch Sourced customer) / Else Rs 500+GST
     
SBI Car LoanFixed Interest Rate  8.85% (If Credit Score is 800 or higher), 9% (if Credit Score is >= 775 but < 800), 9.1% (if Credit Score is >= 757 but < 775), 9.35% (if Credit Score is > 720 but < 757), 9.6% (if CIBIL>= 700 but less than 721), else 9.65%. Further Special Waiver of 10 bps on EV Cars . Premium of 10 bps Charged if Extended Loan Tenure of 6 yrs and 7 yrs taken.  100% Processing Fees Waiver for Limited Period
     
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  9.8% (CIBIL>= 750) / 10.25 % (CIBIL>= 700 but <750 ), else 10.6%. EV Car Buyers gets 5 bps rebate (Minimum – Rs. 1000/- Maximum Rs. 1500/-)
     
Union Bank - Union Miles Car Loan on Floating Basis 9.35% (if CIBIL is 800 or above), 9.65% (CIBIL in 751 to 799 basis loan funding), 9.75% (CIBIL in 700 to 749 basis loan funding). EV Cars gfets waiver of 20 bps No PF, No Foreclosure charge if foreclosed using own funds
     
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 .25% of Loan Amount + GST with maximum Rs 5000
     
IDBI Bank - Floating Rate 8.75% to 9.55% 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

 

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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Comments 19

Guest - SP Akhare on Sunday, 20 August 2023 14:55

Pls Suggest Fixed interest Rate or Floating interest rate is better considering future elections in 2024 in maharashtra

Pls Suggest Fixed interest Rate or Floating interest rate is better considering future elections in 2024 in maharashtra
Guest - Vikasr on Friday, 09 December 2022 12:59

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 checked and found that SBI is offering lowest interest rates on Maruti Baleno While ICICI, HDFC charging 9%, but SBI offering at 8.5%
Guest - Rohit on Friday, 09 December 2022 00:22

Interest Rates increased very much in last 1 year

Interest Rates increased very much in last 1 year
Guest - PROFESSOR CHOR on Thursday, 14 April 2022 19:28

I WANT NO COST EMI. GIVE ME 14 LAKHS LOAN WITH 0% INTEREST, I WILL WISH GOOD FOR YOUR BANK ALWAYS I PROMISE

I WANT NO COST EMI. GIVE ME 14 LAKHS LOAN WITH 0% INTEREST, I WILL WISH GOOD FOR YOUR BANK ALWAYS I PROMISE
Guest - Anas Ali Khan on Friday, 01 April 2022 21:08

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 ?

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 ?
Guest - Pushpen Chandra on Wednesday, 22 December 2021 22:59

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 .
Please guide

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 . Please guide
Guest - vikas on Wednesday, 03 January 2024 13:48

yes you can. for this you got a temporary number valid for 1 month

yes you can. for this you got a temporary number valid for 1 month
Guest - Susheel on Saturday, 11 September 2021 15:17

Is private bank or PSU banks better for car loans?

Is private bank or PSU banks better for car loans?
Guest - sabb on Tuesday, 18 April 2023 23:37

always go for psb

always go for psb
Guest - Santosh Gajbhiye on Wednesday, 25 November 2020 12:42

Please change the processing fee of Bank of Baroda to flat Rs. 1500/- +gst

Please change the processing fee of Bank of Baroda to flat Rs. 1500/- +gst
Guest - driver instructor west auckland on Tuesday, 29 September 2020 18:35

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!

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!
Guest - SAUMEN MISTRY on Friday, 17 April 2020 22:35

there is no information for bongaigaon / guwahati rate of swift.. please provide

there is no information for bongaigaon / guwahati rate of swift.. please provide
Guest - vishal on Saturday, 01 February 2020 16:55

why there is no information of oriental bank ?

why there is no information of oriental bank ?
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
Monday, 22 April 2024

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