Oct 10, 2024 04:59 PM IST
Many banks are offering flexible payback terms, affordable EMI, and 100% financing for car loans, especially with upcoming festivals like Dussehra and Diwali
Many banks are offering flexible payback terms, affordable EMIs, and 100% financing for car loans, especially with the upcoming festivals like Dussehra and Diwali, according to an Economic Times report which added that exclusive freebies and discounts are also offered in some cases.
The interest rate on auto loans, known as annual percentage rates, or APRs, depend on a number of factors including the borrower’s income, debt, credit score, car value, loan amount, the loan length, as well as the RBI’s prevailing repo rate.
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What is the minimum credit score needed to get a car loan?
The HDFC Bank website says “there’s no specified minimum credit score for getting a car loan from HDFC Bank. But a lower credit score can reduce the loan amount you can get. A credit score above 750 is considered excellent for loans. This will allow you to get a higher loan amount at the most affordable car loan rates.”
The interest rates for a ₹5 lakh car loan with a 5-year tenure is as follows:
| Name of the Lender | Interest rate (%) | EMI (Rs) | Processing Fee (% of loan amount) |
| Union Bank of India | 8.70 – 10.45 | 10,307 – 10,735 | NIL |
| Punjab National Bank | 8.75 – 10.60 | 10,319 – 10,772 | 0.25% (Rs. 1,000 – Rs. 1,500) |
| Bank of Baroda | 8.95 – 12.70 | 10,367 – 11,300 | Up to ₹750 |
| Canara Bank | 8.70 – 12.70 | 10,307 – 11,300 | NIL |
| Bank of India | 8.85 – 12.10 | 10,343 – 11,148 | 0.25% (Rs. 1,000 – Rs. 5,000) |
| UCO Bank | 8.45 – 10.55 | 10,246 – 10,759 | Nil |
| State Bank of India | 9.05-10.10 | 10,391-10,648 | NIL |
| IDBI Bank | 8.80 – 9.65 | 10,331 – 10,294 | ₹2,500 |
| Bank of Maharashtra* | 8.70 – 13.00 | 10,307 – 11,377 | NIL |
| Indian Overseas Bank** | 8.85 – 12.00 | 10,343 – 11,122 | 0.50% ( ₹500 – ₹5,000) |
| ICICI Bank | 9.10 onwards | 10,403 onwards | Up to 2% |
| HDFC Bank | 9.20 onwards | 10,428 onwards | Up to 1% ( ₹3,500 – ₹9,000) |
| Karnataka Bank | 8.88 – 11.37 | 10,350 – 10,964 | 0.60% ( ₹3,000 – ₹11,000) |
| Federal Bank | 8.85 onwards | 10,343 onwards | ₹2,000 – ₹4,500 |
| Punjab and Sind Bank | 8.85 – 10.25 | 10,343 – 10,685 | 0.25% (Rs. 1,000 – Rs. 15,000) |
| South Indian Bank | 8.75 onwards | 10,319 onwards | 0.75% (Max: ₹10,000) |
| IDFC First Bank | 9.60 onwards | 10,525 onwards | Up to ₹10,000 |
| City Union Bank | 9.90-11.50 | 10,599-10,996 | 1.25% (Min: ₹1,000) |
Extra points to note
- Bank of Maharashtra gives a 0.25% interest rate concession for those who are current home loan borrowers and corporate salary account holders.
- Indian Overseas Bank (IOB) gives a 0.50% interest rate concession for borrowers with credit scores of 800 and above. Borrowers with credit scores of 750-799 get a 0.25% interest rate concession.
- Punjab and Sind Bank gives a concession of up to 50% on processing fee for PSB Apna Vahan Sugam.
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