Are you looking to apply for a car loan? Confused about which bank to choose? Getting a high rate of interest on the car loan? Don’t worry in this guide we will discuss the top 10 banks for car loan in India.
Explore our comprehensive guide to the top banks for car loans in India. From competitive interest rates and flexible repayment options to swift processing times and exceptional customer service, we’ve curated the ultimate list to help you drive home your dream car. Navigate your journey to car ownership with ease and confidence, backed by India’s most trusted banking institutions.
There are some of the things that one should keep in mind before getting the best car loan. These are:
Insurance of the car: There has been a compulsion on the insurance that banks have made in order to avail auto loans. The amount of loan – The lenders, most of the time, expects the individual to make down payment of 5 % to 80 % upfront, generally known as margin. Finances by HDFC Bank and ICICI Bank are up to 100% of the ex-showroom price. The statutory charges and local duties are not included in the ex-showroom price.
The time period of loan: 7 years is the maximum time period for which an individual can get a car loan. For such a long period of time, the EMI is going to be lower, but the interest rates are going to be higher. Lower rates are available for a shorter period of time.
Interest Rate: When an individual is finalizing a car, the interest rates become an important factor. Both fixed and floating or variable rates are offered by the banks that could range from 8.65 % to 11.50 %. It is important to understand that a flat 10% interest rate might cost an individual more than a 15% interest rate, which is charged on balance, which is reducing.
Processing Time and Fees: The flat amount that ranges from Rs. 3000 to 10000 or as a percentage of the loan amount is charged by banks as a processing fee. The charges for processing are about 0.5 % of the amount of loan. Foreclosure charges or Prepayment – Generally, banks impose about 5% to 8% as foreclosure charges or prepayment. An individual might feel to prepay the loan as early as soon as he/she gets extra money; therefore, got with a bank that has lower prepayment charges.
