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    • Car Loan Interest Rates in November – Compare Cheapest Rates and EMIs for Rs 5 Lakh Loan – Money News
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    Car Loan Interest Rates in November – Compare Cheapest Rates and EMIs for Rs 5 Lakh Loan – Money News

    Umito Posted on

    Buying a car is a goal for some while it is a necessity for others. Whatever the circumstances, buying a car represents a significant financial commitment that can deplete your savings or require a car loan.

    Typically, car the loans offer lower interest rates than unsecured loans, such as personal loans. When exploring car loan options, it is essential to compare different offers from different financial institutions. Some lenders may have exclusive partnerships with dealers, which can result in expedited processing and reduced rates.

    Additionally, some lenders offer pre-approved auto loans to certain customers or offer preferential rates to those who are existing home loan borrowers. So, to get the most favorable deal, it is crucial to evaluate the car loan options available from multiple lenders.

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    It’s important to note that interest rates for car loans are determined by taking into account your credit score and income. Many banks have aligned their lending rates with credit scores. A credit score of 750 or higher can allow you to get a loan at cheaper interest rates, while a low credit score can either prevent you from qualifying for a car loan or force you to accept a loan with a higher interest rate. Therefore, before applying for a car loan, it is advisable to review your credit reports.

    It is important to recognize that you will have to cover some of the costs yourself. Typically, lenders only finance 80-90% of the vehicle’s on-road price. Although some banks may offer financing of up to 100% of the car’s value, this depends on specific terms and conditions and is not guaranteed.

    Generally, credit institutions grant loans with a duration of up to 7 years. In addition to interest rates, it is advisable to inquire about other fees, such as processing fees and repayment fees, which may differ depending on the lender’s policies. For those considering an auto loan, the following table lists public and private sector banks that currently offer some of the most competitive auto loan interest rates in the country. It also includes the indicative EMI for a new car loan of Rs 5 lakh for a tenure of 5 years.

    Interest rate and EMI for a new car loan of Rs 5 Lakh with a tenure of 5 years

    NEW CAR LOAN – RATES AND FEES
    Lender Name Interest rate (%) EMI (Rs)
    Loan amount – 5 lakh
    Mandate – 5 years    		 Processing Fees
    (% of loan amount)
    Union Bank of India 8:70 a.m. – 10:45 a.m. 10,307 – 10,735 NIL
    Punjab National Bank 8:75 a.m. – 10:60 a.m. 10,319 – 10,772 Up to 0.25% (Rs. 1,000 – Rs. 1,500)
    Bank of Baroda 8:95 a.m. – 12:70 p.m. 10,367 – 11,300 Up to Rs 750
    Canara Bank 8:70 a.m. – 12:70 p.m. 10,307 – 11,300 NIL
    Bank of India 8:85 a.m. – 12:10 p.m. 10,343 – 11,148 0.25% (Rs. 1,000 – Rs. 5,000) (Processing fee is waived for individuals with CIBIL personal score of 700 and above or -1/0)
    UCO Bank 8:45 a.m. – 10:55 a.m. 10,246 – 10,759 None
    State Bank of India 9:05 a.m.-10:10 a.m. 10,391-10,648 NIL
    IDBI Bank 8:85 a.m. – 9:65 a.m. 10,343 – 10,538 Rs 2,500
    Bank of Maharashtra* 8:70 a.m. – 1:00 p.m. 10,307 – 11,377 NIL
    Overseas Indian Bank** 8:85 a.m. – 12:00 p.m. 10,343 – 11,122 0.50% (Rs 500 – Rs 5,000)
    ICICI Bank From 9:10 a.m. from 10,403 Up to 2%
    HDFC Bank From 9:20 a.m. From 10,428 Up to 1% (Rs 3,500 – Rs 9,000)
    Bank of Karnataka 8:88 a.m. – 11:37 a.m. 10,350 – 10,964 0.60% (Rs 3,000 – Rs 11,000)
    Federal Bank from 8:85 a.m. from 10,343 2,000 Rs – 4,500 Rs
    Punjab and Sind Bank*** 8:85 a.m. – 10:25 a.m. 10,343 – 10,685 0.25% (Rs 1,000-Rs 15,000)
    Bank of South India from 8:75 a.m. from 10,319 0.75% (Max: Rs 10,000)
    IDFC First Bank from 9:60 a.m. from 10,525 Up to Rs 10,000
    City Union Bank 9:90 a.m.-11:50 a.m. 10,599-10,996 1.25% (Min: Rs 1,000)
    * Interest rate concession of 0.25% for existing home loan borrowers and corporate salary account holders.
    ** Interest rate concession of 0.50% to borrowers with a credit score of 800 and above. Interest rate concession of 0.25% to borrowers with a credit score between 750 and 799.
    ***Concession of up to 50% on processing charges for PSB Apna Vahan Sugam.
    Rates and charges as of November 13, 2024
    Source: Paisabazaar.com

    Umito
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