Best Car Loan Bank In India

I was looking for central banks in India to find the best bank for car loans in India. You can consult the bank and car loan interest rate comparison chart to get the best car loans in India.

At the end of the article, I have mentioned all the factors that influence car loan interest rates. And things to remember when borrowing a car.

PRO TIP: Like other things, EMI is an excellent way to compare the cost of car loans. Compare EMI loan products with the same term and number of loans.

It would help if you planned to buy a car during the holiday season to take advantage of the banks’ offer gains.

India’s Best 2021 Car Loan

#1. SBI Bank Car Loan

The SBI finances up to 90% of the road price for new passenger cars, including MUVs and SUVs.

The advantage of SBI bank car loans is the low cost of 0.20% of processes. The maximum term of the loan is seven years, and the interest is calculated based on the daily reducing balance.

Sbi Bank Loan Interest Rate

  • Fixed-rate: from 7.75% to 8.45%             
  • Loan amount: 90% of the road price             
  • Treatment costs: 0.20%             
  • Insurance: SBI optional life insurance             

Other SBI car loan systems

  • SBI Loyalty Loan Scheme for Lenders             
  • SBI Insured Vehicle Loan Program: 100% FD based on-road price             
  • SBI car loan system for people who generate income but are not involved in economic activities (professionals, entrepreneurs)             
  • SBI green car loan to purchase an electric vehicle             

What we like

  • Low treatment costs 0.20%             
  • SBI green car loan system             

What we didn’t like

  • Longer processing time             
  • Favorite clients with an SBI salary account      
Required Documents       
  • Proof of identity and address
  • Application form
  • Age certificate
  • Proof of income and bank statement
  • Signature verification test

#2. HDFC Bank Car Loan

HDFC Bank allows you to opt for flexible car loan repayment plans. The plans are high-interest loans, global repayment plans, EMI options, repayment loans with flexible repayment payments.

HDFC Bank has an independent portal hdfcbank.gaadi.com to help customers compare, research, and read reviews of new vehicles or apply for a loan.

HDFC Bank bank loan interest rate

  • From 7.29% to 12.50% depending on the vehicle segment.             
  • Loan amount: up to 100% of the road price depending on specific models             
  • Processing costs: 1% of the loan amount, minimum Rs. 5,000 and up to Rs. 10,000.             
  • Insurance: Car insurance with HDFC             
  • Closing costs –             
  • NO: If closed for six months             
  • 6%: If closed between 7 and 12 months             
  • 5%: If closed between 13 and 24 months             
  • 3%: if the position is closed for 24 months.  
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#3. Axis Bank Car Loan

Earn reward points by getting a car loan at Axis Bank. Axis Bank offers a car loan. One lakh and up to 100% of the road price. The loans are for a maximum of 7 years.

Axis Bank car loan interest rate

  • From 8.75% to 11.00%             
  • Loan amount: 100% of the road price             
  • Processing costs: minimum Rs. 3,500 and up to Rs. 5,500.             
  • Installment or closing payments: 5% of the unpaid capital.            

What we like

  • Longer 7 years             
  • Win beneficial prizes             
  • Up to 100% of the road price             

What we didn’t like

  • 2% criminal benefit for delay             
  • Rs. 500 documentation costs             
  • Promotes priority, wealth, and private bank customers             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#4. PNB Bank Car Loan

PNB is financing the purchase of a new vehicle, jeep, van, various available vehicles, and sports cars.

The bank will reimburse the cost of a new car purchased if a car loan is requested within three months of purchase.

Bank interest rate of the PNB Bank

  • Mobile: RLLR + 0.75% to 1.0% based on credit scores             
  • Current RLLR: 6.80%             
  • Corrected: MCLR + 0.95%             
  • Current MCLR: 7.35%             
  • Loan amount: Rs. The net salary for the next month is one million or 25 times lower. 15% margin of road price. When returning a 25% margin.             
  • Treatment costs: at least 0.25%: Rs. 1,000, maximum: Rs. 1,500             
  • Prepayment or closing costs – For variable rate car loans – NO. In the case of a fixed rate (2% or no down payment), if the loan is repaid from your sources.             

PNB bank loan

  • Cars for private use             
  • Net minimum monthly wage. 25,000             

What we like

  • Return the car you bought with your money             
  • Fixed and variable interest rates             

What we didn’t like

  • Vehicle loan repayment margin of 25%             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#5. ICICI Bank Car Loan

ICICI Bank offers new, used and even more cars. The loan amount is up to 100% of the road price within seven years

ICICI bank loan interest rate

  • Resolution: from 7.50% to 13.75%             
  • Loan amount: up to 100% on the price of the previous showcase             
  • Processing costs: Rs. Rs 3,500. 8,500 by car segment             
  • Final payments: 5% of the initial capital or interest for the term of the unexpired loan, whichever is lower.             
  • Partial prepayments: 6% if the prepayment is partial.             

ICICI bank car loan right

The bank does not specify rates but does not have an online rate calculator based on its website, your current ICICI Bank relationship.

What we like

  • Online application with instant electronic approval             
  • Fast processing             

What we didn’t like

  • 2% delay for a penalty             
  • Rs. 650 documentation and other expenses             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#6. Magma Fincorp Car loan

Magma Fincorp allows you to have flexible repaying loans through cash deposits, ECS, or overdue checks.

Magma provides an end-to-end service for gathering and processing documents quickly.

Magna provides simple vehicle loans without income documentation to existing customers with good amortization records.

But you can get the maximum loan:

  • Employee: 3 times the annual salary             
  • Self-employed: 6 times yearly income             

Magma Fincorp car loan interest rate

  • 12% to 16%             
  • Loan amount: up to 100% of the value of the car             
  • Processing costs – Minimum – Rs. 0 and max: Rs. 4,625, depending on plan and loan amount             
  • Prepaid or closed payments: 5% of unpaid capital            

 What we like

  • Flexible return options             
  • Faster processing in less than 4 hours             
  • Rs. 1 lake income requirement for the self-employed             

What we didn’t like

  • Few branches throughout India             
  • 3% delay for a penalty             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#7. IDBI Bank Car Loan

IDBI Banks car loans have interest rates starting at 7.50% for CIBIL scores of 801 or higher.

The bank also considers -1 CIBIL scores but does not finance CIBIL scores for car loans for people under 700.

IDBI bank car loan interest rate

  • From 7.50% to 8.10%             
  • Loan amount: up to 90% of the price of the previous exhibition hall             
  • Processing costs: Rs. 2,500, minimum Rs. 1,500             
  • Final payments: for the fixed-rate loan: 1% of the loan amount within six months after six months from its source, NO. Variable Rate Loan – Repayment Payments.             

What we like

  • Lower processing costs. 1,500             
  • 1% down payment or closing payments, NO after six months             

What we didn’t like

  • Rs. 1,000 will be charged if the vehicle or dealer changes             
  • 2% criminal benefit for delay             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#8. Sundaram Finance Car Loan

If you plan to buy imported cars, you can get up to 100% money for Indian vehicles or Sundaram subsidy for imported cars.

Car loans are the equivalent of the price of a former showcase for all makeup and models.

The car is available for 12 to 60 months and a loan installment but is not funded by Sundaram also with flexible monthly installment option for 5 + 2 years.

Sundaram interest rate car loan financing

  • 8.0% to 16.0%             
  • Loan amount: up to 100% of the price of the previous exhibition hall             
  • Processing costs: Rs. 3,500             
  • Prepay or close payments: 3% of the loan amount             

What we like

  • Loan for imported cars             

What we didn’t like

  • Hold a loan for 60 months             
  • 3% of closing costs             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#9. Bank of Baroda Car Loan

With a Baroda bank loan, you can also choose hatchback vehicles, sedans, MUVs, SUVs, sports cars, or luxury cars to get financing.

The bank offers loans for vehicles up to Rs. 1 crore, and not everything is available, including NRIs and IOPs. But the maximum loan on the road is up to 90% of the price of the car.

You need a minimum of 701 CIBIL points for any type of Baroda Bank car loan

Baroda Bank car loan interest rates

  • BRLLR + SP + from 0.25% to BRLLR + SP + 3%.             
  • The current BRLLR is 6.85%, and SP is 0.25%. Therefore, car loans cost between 7.35% and 10.1%.             
  • Loan amount: up to 90% of the road price             
  • Processing costs: at least 0.5% of the loan amount – Rs. 2,500 and up. 10,000             
  • Prepaid or closed payments: NULL             

Baroda bank loan right

  • Determined Baroda Bank’s ability to repay vehicle loan entitlements.             

What we like

  • Loans for sports and luxury vehicles             
  • Loan of vehicles available to residents, NRI and PIO             
  • No prepayment or closing payment             

What we didn’t like

  • 701+ CIBIL score             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#10. Federal Bank Car Loan

The Federal Bank is financing car loans of up to 100% of the old storefront price for a new car, a used car, a new two-wheeler, and even a car loan repayment.

The Federal Bank offers free accident insurance up to Rs. 10 lakes for individuals.

Federal Bank car loan interest rate

  • 8.50%             
  • Loan amount: up to 100% of the price of the previous exhibition hall             
  • Processing costs: minimum Rs: 1,500 and maximum: Rs. 2,500             
  • Prepay or close payments: VALUE for a variable rate loan. Fixed-rate car loans: 3%             

What we like

  • 100% discount on the price of the previous exhibition hall             
  • Low Rs. At least 20,000 income per month             

What we didn’t like

  • Late repayment for 2% penalty             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

#11. Central Bank of India Car Loan

The Central Bank of India handles maximum vehicle loans.

The bank charges a 10% lower margin for loans up to Rs. 20 lakhs. While in the case of loans, the margin is above Rs. 20 Lakhs is 20%.

Central Bank of India car loan interest rate

  • From 7.25% to 7.45% by risk category             
  • Loan amount: up to 75 lakes             
  • Processing costs: 0.5% of the cost of the car; R at least. 2,000 and up to Rs. 20,000             
  • Prepaid expenses – NO             

What we like

  • Maximum margin of 10% for loans. 20 lakes             
  • Interest rate less than 7.25%             

What we didn’t like

  • Up to Rs. 20,000 processing costs             
Required Documents       
  • Proof of identity and address
  • Application form
  • Age Proof
  • Proof of income and bank statement
  • Signature verification test

Compare car loan interest rates

  • SBI Bank: from 7.75% to 8.45%             
  • HDFC bank: from 7.29% to 12.50%             
  • Axis Bank: from 8.75% to 11.0%             
  • GNP: from 7.55% to 8.30%             
  • ICICI Bank: from 7.50% to 13.75%             
  • Magma Fincorp: 12% to 16%             
  • IDBI Bank: from 7.50% to 8.10%             
  • Sundaram funding: 8% to 16%             
  • Baroda bank: from 7.35% to 10.10%             
  • Federal Bank: 8.50%             
  • Central Bank of India: 7.25% – 7.45%             

Six things you should consider while having the best car loan in India

#1. Car insurance

Banks have forced insurance to take out car loans. A recent Supreme Court ruling forced him to take out initial insurance for three to five years.

#2. Full loan

Most lenders will have to make a lower payment of between 5% and 25%, and the profit is also known. Find a bank that finances 100% of the price of the old storefront.

However, the price of the senior exhibit does not include local duties or legal fees.

#3. Loan term

You can get a car loan for up to 7 years. The EMI will be lower for a longer-term loan, but the amount of interest paid will be higher.

Remember that in the short term, the rates will be lower.

#4. Interest rates

The critical difference in completing a car loan is the interest rate. Banks offer fixed and mobile interest rates between 7.25% and 13.75%.

Don’t be fooled by the lowest fixed interest rate. A fixed interest rate of 10% will cost you more than a 15% interest rate when you reduce your balance.

#5. Fees and processing times

Check processing, documentation, and other payments before applying for a car loan.

#6. Prepaid or closed payments

Banks typically charge between 1% and 3% as prepaid or closed payments.

You may soon receive extra cash as you tend to pay off a loan in advance or foreclose, so go to a bank with the lowest closing charges.

Factors Affecting the Car Loan Interest Rate

#1. Relationship with the bank

An excellent long-term relationship with the bank can help you negotiate not only a higher amount of the car loan but also a lower interest rate.

This is for protection, and the bank is aware of your savings and relationships.

#2. Credit report

Credit scores above 700+ reflect solvency. Banks want to offer lower interest rates to people with high scores compared to people with lower scores.

If you don’t know your CIBIL score, you can check it out for free. If your CIBIL score is low, you should check how to improve your CIBIL score.

#3. Loan amount or discount

The lower the payment, the lower the amount of the loan that indicates good financial standing. And that will help you get a lower interest rate.

#4. Time-lapse

More extended periods have lower interest rates, which are reflected in lower EMIs. But at the same time, it increases the overall cost of interest.

#5. Income or salary

Banks prefer employees to get loans because they are a regular and stable source of income.

A person working in PSUs or paid multinationals have a higher chance of getting lower interest rates to get a higher number of loans.