Car Loan Interest Rates
A car loan or automobile loan is offered by a bank or an NBFC (Non-Banking Fianancial Companies) to its customers for purchasing a two wheeler or four wheeler vehicles. The car loan interest rates depends on certain factors, such as loan amount, tenure and credit score.
However, for most of the banks, the lowest car loan interest rates can start from 7.30% per annum.
Here, we have covered the best car loan interest rate offered by all the banks. A person can go through these to get the best interest rates on their car loan.
A car loan or automobile loan is offered by a bank or an NBFC (Non-Banking Fianancial Companies) to its customers for purchasing a two wheeler or four wheeler vehicles. The car loan interest rates depends on certain factors, such as loan amount, tenure and credit score.
However, for most of the banks, the lowest car loan interest rates can start from 7.30% per annum.
Here, we have covered the best car loan interest rate offered by all the banks. A person can go through these to get the best interest rates on their car loan.
List of Car Loan Interest Rate for All Banks
Here are the best car loan interest rate of 2024 from famous banks around India:
Current Interest Rates for Car Loans
7.30% - 9.90%
7.35% - 7.95%
8.82% - 12.75%
8.20% - 8.55%
7.40% - 7.50%
9.40% - 9.90%
7.25% - 7.50%
8.40% - 9.00%
8.80% – 10.00%
Corporation Bank
7.40% - 7.50%
7.95% - 8.70%
7.70% - 9.30%
Here are the best car loan interest rate of 2024 from famous banks around India:
Current Interest Rates for Car Loans | |
7.30% - 9.90% | |
7.35% - 7.95% | |
8.82% - 12.75% | |
8.20% - 8.55% | |
7.40% - 7.50% | |
9.40% - 9.90% | |
7.25% - 7.50% | |
8.40% - 9.00% | |
8.80% – 10.00% | |
Corporation Bank | 7.40% - 7.50% |
7.95% - 8.70% | |
7.70% - 9.30% | |
Types of Car Loan Interest Rate in India
Car loan interest rates are of two types, i.e., fixed interest rate and variable interest rate.
A fixed interest rate is one that remains consistent throughout the loan's term. These interet rates are unaffected by market swings. A floating interest rate, on the other hand, is a rate that changes in response to shifting financial market trends.
Car loan interest rates are of two types, i.e., fixed interest rate and variable interest rate.
A fixed interest rate is one that remains consistent throughout the loan's term. These interet rates are unaffected by market swings. A floating interest rate, on the other hand, is a rate that changes in response to shifting financial market trends.
Car Loan Application Process in India
Here is the step-by-step guide on the car loan application process:
Here is the step-by-step guide on the car loan application process:
1) CIBIL Score Check
The very first step for loan application is to check the CIBIL or credit score of the applicant. A person should have a positive CIBIL score to be eligible for the application process. A score above 750 indicates a good CIBIL score. The lender can also reject the car loan application based the applicant doesnot pass the CIBIL score check.
The very first step for loan application is to check the CIBIL or credit score of the applicant. A person should have a positive CIBIL score to be eligible for the application process. A score above 750 indicates a good CIBIL score. The lender can also reject the car loan application based the applicant doesnot pass the CIBIL score check.
2) Apply with Lenders
After a person has examined their credit score, it's time to consider vehicle loans and lenders, which are classified as:
- Nationally significant banks.
- Community banks and credit unions.
- Internet lenders who only offer auto loans.
- If purchasing a car from an online car retailer with in-house financing.
- Dealership financing or "captive" lenders are provided by automakers.
Even if you want to take dealership or online retailer financing in the future, you should compare quotations from the first three types of lenders first. Your own bank or credit union may offer you a better rate, especially if you agree to set up automatic loan payments from a checking account with them.
After a person has examined their credit score, it's time to consider vehicle loans and lenders, which are classified as:
- Nationally significant banks.
- Community banks and credit unions.
- Internet lenders who only offer auto loans.
- If purchasing a car from an online car retailer with in-house financing.
- Dealership financing or "captive" lenders are provided by automakers.
Even if you want to take dealership or online retailer financing in the future, you should compare quotations from the first three types of lenders first. Your own bank or credit union may offer you a better rate, especially if you agree to set up automatic loan payments from a checking account with them.
3) Get Pre-Approved
After you've reduced your search to a few lenders, you may receive interest rate quotes and compare offers. Having lenders compete for your business aids in obtaining the best rate. Furthermore, because lenders assess different elements in your credit record, vehicle loan interest rate offers can vary greatly.
You can be pre-qualified or pre-approved for a loan when you apply to lenders. They are distinct, and it is critical to understand what each one entails.
After you've reduced your search to a few lenders, you may receive interest rate quotes and compare offers. Having lenders compete for your business aids in obtaining the best rate. Furthermore, because lenders assess different elements in your credit record, vehicle loan interest rate offers can vary greatly.
You can be pre-qualified or pre-approved for a loan when you apply to lenders. They are distinct, and it is critical to understand what each one entails.
4) Decide the Car Loan Amount
The maximum amount you can borrow will be shown in your pre approval offers, but this is not the price of the automobile you can purchase. You should budget an extra 10% to cover taxes and fees. To construct your loan, use a car loan calculator. Enter your down payment, the trade-in value of your current vehicle, and loan terms to determine the best monthly payment for your budget.
The maximum amount you can borrow will be shown in your pre approval offers, but this is not the price of the automobile you can purchase. You should budget an extra 10% to cover taxes and fees. To construct your loan, use a car loan calculator. Enter your down payment, the trade-in value of your current vehicle, and loan terms to determine the best monthly payment for your budget.
5) Choose the Car
Now that you've received financing offers and know the maximum automobile price you can finance, it's time to start choosing your new ride.
Now that you've received financing offers and know the maximum automobile price you can finance, it's time to start choosing your new ride.
Factors Affecting Car Loan Interest Rates
The interest rates applied on your car loan depends on the following factors:
a) Income: A higher wage indicates that the loan will be serviced on time. Those with higher salaries get better lending rates from banks. Banks continue to prefer salaried employees over self-employed individuals since wages ensure that the account receives daily cash flow. But, self-employed professionals have an advantage over salaried workers since they make more.
b) Tenure:
List of Car Loan Interest Rate for All Banks Here are the best car loan interest rate 2024 from famous banks around India:
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Vizzve and India Dhan do not claim ownership of any third-party content, and no copyright infringement is intended. All proprietary rights remain with the original owners.
Additionally, no monetary compensation has been paid or will be paid for such usage.
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The interest rates applied on your car loan depends on the following factors:
a) Income: A higher wage indicates that the loan will be serviced on time. Those with higher salaries get better lending rates from banks. Banks continue to prefer salaried employees over self-employed individuals since wages ensure that the account receives daily cash flow. But, self-employed professionals have an advantage over salaried workers since they make more.
b) Tenure:
List of Car Loan Interest Rate for All Banks Here are the best car loan interest rate 2024 from famous banks around India:
Disclaimer: This article may include third-party images, videos, or content that belong to their respective owners. Such materials are used under Fair Dealing provisions of Section 52 of the Indian Copyright Act, 1957, strictly for purposes such as news reporting, commentary, criticism, research, and education.
Vizzve and India Dhan do not claim ownership of any third-party content, and no copyright infringement is intended. All proprietary rights remain with the original owners.
Additionally, no monetary compensation has been paid or will be paid for such usage.
If you are a copyright holder and believe your work has been used without appropriate credit or authorization, please contact us at grievance@vizzve.com. We will review your concern and take prompt corrective action in good faith... Read more