Planning to buy a new car? Here’s what top-9 lenders are offering

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With the restrictions in different states, auto sales are revving up. If you have been eyeing that dream car for some time now, this might be the time to go for it. Before making the final purchase decision, tarry a little and check out the interest rates on the auto loans that top 9 lenders in the country are offering.

SBI

The country’s largest lender is offering an interest rate between 7.25% and 9.50% depending on the loan amount, customer profile and the price of the vehicle.

PNB

The second largest PSU bank also has some attractive car loan offer to its customers. Interest rates start from 8.75% for new cars and 11.20% for used cars.

HDFC Bank

The largest private bank is also offering one of the best interest rates on car loans. HDFC bank offers interest rate between 7.95% and 8.30% depending on the price of the vehicle and the customer profile.

ICICI Bank

ICICI bank also offers customers almost 100% on road price in some cases. This bank offers interest rates between 9% and 14.5%. The rate depends upon the car price and the category of the customer.

Axis Bank

Axis Bank offers car loans for new and pre-owned cars. The interest rate is between 8.65% and 10.9%. The rate depends upon the quantum of loan and the price of the vehicle.

Bank of Baroda

The third-largest PSB offers a rate that starts from 7.25%. BoB auto loans are available to salaried employees, businessmen, professionals, corporates as well as NRIs and PIOs. They offer loans up to 90% of the on-road price.

Canara Bank

This bank offers a low interest rate on car loan. According to the bank website the interest rate of car loan varies between 7.35% and 9.9%. This rate one of the best. They also finance 100% of the on-road price of the car.

Kotak Mahindra Bank

Kotak Mahindra Bank offers car loan staring at 8%. It goes up to 24%. They have promised to give loan within 24 hours and with minimum documentations. KMB also finances up to 100% of the price of the vehicle.

Central Bank of India

Central Bank offers car loans up to Rs 1 crore at an interest rate between 8.8% and 10.3%. It provides a maximum of 90% of the car’s on-road price and has repayment tenure of a maximum of 84 months.

Points to remember

Almost all the lenders offer loans for both new and pre-owned car. The repayment tenure usually lies between 3 and 7 years.

Some banks lend 90% of the on-road price, some offer 80%. Across the board 80%-85% loan is standard practice of the industry.

Banks charge a processing fee between 2% and 3% of the total loan amount.

Apart from these, another Rs 5,000 is needed for various documentation and processing of papers which is charged to the customers.