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Car Loan Interest Rates Comparison in January 2022 Bank Wise. SBI, ICICI, HDFC, PNB Car loan

Car Loan Interest Rates Comparison in January 2022 Bank Wise. SBI, ICICI, HDFC, PNB Car loan

Compare Car Loan Interest Rates with Special Schemes in January 2022 from SBI, ICICI, PNB, HDFC Bank, Union Miles, Allahabad Bank, IDBI as Leading PSU, Private Banks in India

 

Car Loan Interest Rates, Process in January 2022

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

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

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 January 2022

PNB (Punjab National Bank) Offering Car Loan at lowest rates ever of last 15 Years with Finance now begins from just 6.75% pa (Rate varies basis Credit Rating and CIBIL Score), This translates to EMI of just Rs 1968 per Lakh for 7 Years, while for 7 Years is Rs 1497 per Lakh making PNB Car Loan as for most affordable choice

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.

SBI Car Loan Interest Rates, Eligibility in January 2020

 

Below are Car Loan Interest Rates Scheme in January 2022

Bank Car Loan Interest Rate in January 2022 Car Loan Processing Fees
PNB Car Finance - under Floating Rate Option for Women and Corporate Account Holders 6.75% (for EV Cars). For Petrol and Diesel Cars starting from 6.85% for Women and Corporate Account Holders 100% PF Fees Waiver till March 2022
     
PNB Car Finance - under Floating Rate for Other Profiles 6.85% (CIBIL > 750), 7.15% (CIBIL >= 700 but less than 750), 7.5% (for CIBIL  under 700). EV Car Buyers have 10 bps rebate 100% PF Fees Waiver till March 2022
     
Punjab & Sind Bank 7% (CIBIL > 768), 7.1% (CIBIL > 752 but less than 768), 7.3% (CIBIL > 732 but less than 752). 7.55% (CIBIL > 690). Linked to EBLR, Floating Rate .25% of Loan Amount + GST
     
SBI Car Loan - Fixed Interest Rate -   7.25% (if Credit Score is 757 and above), 7.5% (if Credit Score is > 720 but < 756), 7.75% (if CIBIL>  688 but less than 721), else 7.85%. Further Special Waiver of .2% on EV Cars and .05% for existing Home Loan Borrowers . Premium of .1% Charged if Extended Loan Tenure of 6 yrs and 7 yrs taken 100% PF Fees Waiver till 31st Jan 2022
     
Union Bank of India (Union Miles Car Loan) 7.4% (if CIBIL score > 700) else 7.5% . 85% On Road Finance Available. No Prepayment Penalty if loan preclosed from Own Source Verified Funds. Floating Rate No Processing Fees, No Foreclosure charges till 31st Jan 2022
     
Uco Bank 7.25% Interest Rate for CIBIL > 700 for New Customer and CIBIL>600 for Existing UCO Bank Customer 1% of Loan Amount subject to maximum Rs 1500  
     
Central Bank of India 7.25% (CIBIL > 725), 7.35% (CIBIL > 700 but upto 725), 7.45% (CIBIL > 675 but less than 701). Floating Rate 100% Processing Fee Waiver
     
Bank of Baroda Interest Rate Starting from 7% for CIBIL>800 and varies basis CIBIL Score. Floating Rate Offered. Premium of .05% Charged in Interest Rate if not taken with Loan Risk Insurance Cover Rs 1770 Processing Fees including GST + Rs 1000 Account Opening Charge
     
Canara Bank 7.3% to 7.45% (Women Borrower) / 7.35% to 7.5% (Men Borrower) basis Credit Rating. Floating Rate .25% of Loan Amount+ GST subject to maximum capping of Rs 5000
     
IDBI Bank - Floating Rate 7.35% (CIBIL > 800), 7.45% (CIBIL > 775 but till 800), 7.55% (CIBIL > 741 but till 775), 7.95% (CIBIL > 700 but till 740) Rs 2500 + GST
     
Karnataka Bank 8.2% and Onwards (Basis CIBIL Score) .5% of Loan Amount+ GST subject to minimum Rs 2500 and maximum Rs 10,000
     
Kotak Mahindra Bank Finance starting at 7.25% Interest Rate and varying basis Car Model, Credit Profile. Fixed Rate Scheme PF as per Bank T&C
     
Private Banks - ICICI, HDFC Bank, Axis Bank (for Select Pre-Approved Customers) 7.5% to 7.85% (for Customers with Pre Approved Loan) with Flexibility of No Prepayment and no Part-Payment charges after 6 month of loan application Rs 2499 to Rs 3999 as reduced PF Fees
     
Private Banks - ICICI, HDFC Bank, Axis Bank **  7.5% to 7.75% (Luxury Segment), 7.75% - 8.% (C+ & C Executive Segment), 8% - 8.5% (A & B Segment) Rs 6500 to 7000 as Indicative PF including Documentation Charge

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 12

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 - 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 - 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
Guest
Saturday, 29 January 2022

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