Buying a car involves crucial decision making and a lot of search work. Right from the car model to the dealer, the buyer has to think about every aspect. But, when it comes to looking for the correct financier people become liberal and live the decision on the showroom dealers who suggest the financiers with whom they have tie-ups. The lenders suggested by the dealer may offer good deals but before finalising, the potential buyer must check and compare the car loan interest rates offered by various banks and other lending institutions. This will enhance the joy of purchasing a new car by reducing the burden of repayment.
So if you are you in the plan to purchase a new car, spare some time and search for the right financiers. You can do this by comparing the lending rates and other loan details of various banks. The loan details and rate of interest of few banks are given below:
SBI Car Loan:
The State Bank of India provides car loan for the purchase of both new and used car. The loan is sanctioned for the maximum tenure of 7 years. The borrower can even prepay the loan if in a position to. The bank doesn’t charge any penalty on the foreclosure. Moreover, it offers the loan at reasonable rates. The lending rates on a new car loan for women borrowers ranges from 9.10% – 9.20% p.a. while for male applicants it is 9.15% – 9.25% p.a. Whereas, the used car loan rates varies from 10.40% -12.65% p.a. for female applicants and from 10.45% – 12.65% for male borrowers.
Axis Bank Car Loan:
The borrowers can apply for a loan at Axis Bank and earn reward points for completing the transaction. The bank provides up to 95% of the ex-showroom price on the selected models while the minimum amount of loan is ₹ 1,00,000. The new car loan can be availed for the time period ranging from 1 year to 7 years. The rate of interest for salaried individuals is 9.15% p.a. and for others, it ranges from 11 -12% p.a. The bank also offers used car loan for the tenure lasting up to 5 years at the interest rate of 14.50% – 16.25% p.a. It lends up to 90% funding of the valuation amount.
HDFC Bank Car Loan:
HDFC Bank finances the car requirement of the aspirants making a car purchase. It provides loan for the purchase of both second-hand and new car. The customer can avail up to 100% finance to purchase a new car. The loan can be taken for the flexible period of 7 years and for the maximum amount of ₹ 1,50,00,000. For the used car, the applicant can avail up to 80% of the car value for the tenure ranging from 1 year to 5 years. The maximum amount disbursed in the case of used cars is limited to ₹ 50,00,000. Both the loans are charged at fixed rate of interest. The lending rates for new car loan ranges from 11.50% – 13.75% p.a. and for used cars it variates from 14.50% – 17.50% p.a.
ICICI Bank Car Loan:
The salaried, self-employed professionals/ non – professionals between the age limit of 21 years to 65 years can apply for a car loan at ICICI Bank. The bank provides car loan up to 100% of the ex-showroom price for the tenure of 7 years. The bank offers pre-qualified car loans to the existing customers. The interest charges are based on the age and segment of the car. The ICICI new car loan interest rate varies from 10.75% to 12.75% p.a. and depends on the tenure of the loan. However, the rate of interest for the pre- owned car is 15.50% p.a.
These were the lending rates of some of the top banks. The borrower must check the rates offered by other lending institutions and avail the financing facility from the one that meets the expectations at the lowest cost. Also, while applying for the loan keep the following documents handy.
Documents Required for Car Loan:
The following documents are requisite documents:
- Age proof
- ID proof
- Application form
- Residence proof
- Income proof
- Bank statement
- Signature verification proof
- Pro-forma Invoice or Rate List