Best Car Loan To Look Forward To In 2023
Financial institutions of India provide up to 100% financing of on-road prices of new, old and green cars to salaried and self-employed individuals. Car loans come with varying interest rates among banks charged on the principal amount, and get a loan with tenure up to seven years.
Borrowers should analyze the interest rate, processing fees and other charges levied banks carefully, and make an informed decision. There are also eligibility factors, such as credit score, history of on-time payment of equated monthly installments (EMIs), past loans, and credit card bills as well as one’s relationship with the bank.
Most banks also allow its existing customers to keep collateral as security, such as fixed deposits, as well as loans against cars, for obtaining a new car loan.
Here are some car loans that are interesting for 2023.Axis Bank
Axis Bank is offering up to 100% financing on the on-road price of the new and green cars, and up to 95% on used cars that are not older than 10 years.
The bank charges an interest rate in the ranges of 8.4% to 13.05% on new cars, 13.2% to 15.35% on old cars, and 7.5% onwards on green cars on the loan applied by an individual with a yearly income of minimum INR 2 lakh.
The fee to process the car loan ranges between INR 3,500 and INR 5,000, and an additional INR 500 is levied as documentation charge, among other charges. An applicant can apply for the foreclosure of the loan by paying 5% extra on the outstanding principal amount.
One can track their loan application online, and if required can get help from customer care service via live agent chat online, virtual assistance, whatsapp banking, email, SMS and helpline numbers. Remember, the bank provides loans only to car dealers that are verified by the bank. ICICI Bank
Owning a car has become a necessity and a convenient mode of transport in today’s time. In this context, ICICI Bank offers 80% to 100% financing on the on-road price of new and old cars as well as funding against pre-owned vehicles or top-up loans on the original car loan amount.
ICICI bank charges interest rates in the range of 8.25% to 8.9% on new cars, and 11.25% to 16.60% on old cars against the principal amount. Its loan comes with a 2% processing fee and an additional INR 500 as documentation charge. Remember, penal charges are applicable upon missing EMI payments, bounce cheque, etc. Other charges include registration fees.
Before applying for a loan, applicants can login to the bank’s internet banking to get an online quotation on select cars. Alternatively, one can visit the bank’s nearest branch to apply for a car loan by giving out details of the vehicle and the car dealer.State Bank of India
Applying for a car loan is easy and can be done effortlessly online via the official website of the State Bank of India. The bank charges an interest rate in the range of 8.30% to 9.1% on loans on new cars and 10.7% to 14.2% on used cars to salaried, self employed and individuals engaged in agriculture and allied activities.
SBI also offers car loans to existing home loan borrowers, and individuals maintaining fixed deposits with the bank as collateral. Notably, the bank does not charge any processing fee on loans for the purchase of new cars, but a 1.5% fee is levied on used cars.
An applicant can close the loan before the tenure up on 3% charge on the outstanding if foreclosed within 24 months of loan disbursement. On the down side, there’s no benefits of top-up loans and loans against a car.HDFC Bank
There’s a wide range of cars available in the market that suit all economic backgrounds from affordable cars to luxurious cars. In this context, HDFC Bank offers 100% financing on the on-road price of the latest and existing models of new cars on an interest of up to 10% and up to 15% on used cars.
Existing customers of the bank can also avail of funding against pre-owned vehicles. Top up loans are also available on the original car loan amount.
HDFC Bank charges 0.5% processing fees. Remember, charges are levied for missing EMIs, registration and obtaining NOCs.Canara Bank
Nearly all banks offer car loans with competitive interest rates. However, Canara Bank offers 0.50 bps less RoI to women borrowers. For other borrowers, the bank charges an interest rate starting 8.95% on loans for the purchase of new cars, up to 11.5% on used cars, and 8.8% onwards for electric vehicles.
Unlike other banks, Canara Banks provides up to 80% to 90% financing on the on-road price of a new car, 60% on pre-owned cars, and 75% to 85% on green cars.
Borrowers interested in applying for a car loan with Canara Bank will have to call the bank’s toll-free number or visit the bank’s nearest branch and give out details of the vehicle and the car dealer.Punjab National Bank
Interest rates on car loans offered by the banks are very competitive. Punjab National Bank offers may lend up to 85% financing of ‘on-road price’ on new vehicles at an interest rate in the range of 8.35% to 9.15%, depending on applicants’ credit score, history of on-time payment of EMIs, past loans and credit card bills.
PNB Bank also offers car loans to existing home loan borrowers, or a combo of home and car loans to its existing customers.
Interested borrowers will have to visit the bank’s nearest branch to apply for a car loan by giving out details of the vehicle and the car dealer.Bottom Line
Owning a car is a status symbol, comforting and a valuable mode of transport. Buyers need to have a few documents ready before applying for a car loan. Remember, financial institutions will assess your income and see whether you can cater to a new car loan and if the EMI fits your budget. Also, paying an up-front fee or down payment will lessen your EMI burden.