Retailers from across the spectrum, including car dealers, provide various freebies, discounts and deals during Diwali. Banks also offer attractive interest rates, processing fees, etc., to sweeten the deal for customers who take loans to purchase expensive things like cars, houses, etc. However, it is vital to compare the interest rates of different banks before deciding.
Let’s look at the bank rates for a loan of Rs 5 lakh with a five-year term. The rates are as of November 8, 2023, as per Paisabazaar.com.
Here’s a peek at the lowest car loan rates offered by banks
The UCO Bank offers the lowest car loan rates at 8.45 per cent, with a zero processing fee. The equated monthly instalment (EMI) will be around Rs 10,246.
The State Bank of India (SBI) offers car loans at a minimum of 8.65 per cent. It has no processing fee, and the EMI will be around Rs 10,294 to Rs 10,550.
Bank of Baroda, Canara Bank, and Bank of Maharashtra offer car loans at 8.70 per cent; the minimum EMI will be Rs 10,307. However, they differ in processing fees. For instance, BoB charges Rs 500, while Canara Bank announced zero processing fee until December 31, 2023.
The Union Bank of India (UBI), Punjab National Bank (PNB), Bank of India (BoI), IDBI Bank, HDFC Bank, and South Indian Bank offer car loans at 8.75 per cent. UBI has waived the processing fee until November 15, 2023; PNB charges 0.25 per cent, and BoI has zero processing fee. IDBI’s processing fee is Rs 2,500, HDFC Bank’s fees range from Rs 3,500 to Rs 8,000, and the South Indian Bank charges 1.0 per cent (maximum of Rs 10,000)
The Indian Overseas Bank (IOB), Federal Bank, and Punjab and Sind Bank offer car loans at 8.85 per cent. IOB’s processing fee is between Rs 500 and Rs 5,000, Federal Bank’s fee is between Rs 2,000 and Rs 4,500, and Punjab and Sind Bank’s fee ranges from Rs 1,000-15,000. In addition, IOB offers a 20 per cent rate concession on electric vehicle loans.
ICICI Bank and IDFC First Bank charge a minimum of 9.0 per cent on car loans. Their processing fee is up to 3.5 per cent
This bank offers car loans at 14.25 per cent, with a minimum processing fee of Rs 1,000.