Buy a new car? Find out about the current lending rates offered by top banks
Buy a new car? Find out about the latest loan rates offered by top banks
Buying a new car is clearly one of the greatest pleasures in the world. And buying a car would probably be the second most expensive purchase a person will make in their lifetime right after buying a house. There are different types of vehicle loans on the market today. However, when deciding on a loan, borrowers usually prefer variable rates in the face of lower interest rates.
As with any other loan, the interest rate must also be taken into account with a car loan.
Anyone looking to get a car loan needs to look for the lender who is willing to give you the right loan amount at the lowest interest rate. Here are the auto loan interest rates from the State Bank of India (SBI), ICICI Bank, HDFC Bank and Bank of Baroda.
SBI car loan
According to the SBI website, you should be a person between the ages of 21 and 67 to qualify for an SBI car loan. For regular employees, the maximum sanctioned amount is 48 times the monthly net income. Minimum annual net income of applicant or co-applicant, if any, along with at least Rs 3,00,000, according to SBI website.
For professionals, self-employed and business people, the maximum sanctioned is 4 times the net profit or gross taxable income according to the ITR after adding the depreciation and repayment of all existing loans. For people engaged in agriculture and related activities, the maximum is three times the annual net income.
New car loans with a fixed interest rate are available from ICICI Bank. The interest rate on a fixed rate car loan remains constant throughout the term. The interest rate varies between 7.50-9% depending on the term and other factors. New car interest rates are determined by factors such as automobile segment, CIBIL score, customer relationship, loan term, etc., according to ICICI Bank’s website.
Bank of Baroda
The Bank of Baroda offers financing of up to 90%, according to its website. The interest rate varies between 7% and 9.75%. Customers who do not take out credit insurance are charged a risk premium of 0.05 percent in accordance with current standards.
Foreclosure is not permitted for HDFC Bank’s car loan customers within six months of receiving the car loan. According to HDFC Bank’s website, advance closings within a year of the 7th EMI would be charged 6% of the outstanding principal. Preclosure within 13-24 months of first EMI, 5% of principal outstanding and 3% of principal outstanding for preclosures at 24 months of first EMI.