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Car loan rates during festive season: Many people buy new cars during the festive season. During this period, most car companies also offer special festival discounts. Apart from this, car loan giving banks also come up with festival offers, which include other attractive benefits like low interest rates, discount on processing fees. If you are also planning to buy a car in this festive season, then you must compare the interest rates on car loan. This will not only reduce your EMI but you can also get good offers.
How are interest rates decided on car loans?
Apart from the RBI repo rate, banks consider many other things while offering car loan interest rates to the customer. For example, people with good credit scores often get loans at lower interest rates. If your credit score is above 750, you can get a higher loan and have to pay lower interest rates. Apart from this, things like your monthly income, existing loan, price of the car, loan amount and tenure can also affect the car loan rate.
Car loan offers during festive season
Many banks offer special offers on car loans during festivals like Navratri, Dussehra and Diwali. These include reduced interest rates, waiver of processing fees, loan up to 100% of the car price, special discounts and free gifts. Information about car loan interest rates of some major banks is given below. For example, for a loan of Rs 5 lakh for a tenure of 5 years, the EMI and processing fees are also given:
|
bank name |
Car Loan Interest Rate (%) |
EMI (in Rs.) |
processing fees |
|---|---|---|---|
|
Car loan amount of Rs 5 lakh for 5 years |
(as % of loan) |
||
|
Union Bank of India |
8.70 – 10.45 |
10,307 – 10,735 |
Zero |
|
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 Rs 750 |
|
Canara Bank |
8.70 – 12.70 |
10,307 – 11,300 |
Zero |
|
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 |
Zero |
|
state Bank of India |
9.05-10.10 |
10,391-10,648 |
Zero |
|
IDBI Bank |
8.80 – 9.65 |
10,331 – 10,294 |
₹ 2,500 |
|
Maharashtra Bank* |
8.70 – 13.00 |
10,307 – 11,377 |
Zero |
|
Indian Overseas Bank |
8.85 – 12.00 |
10,343 – 11,122 |
0.50% (Rs. 500 – Rs. 5,000) |
|
ICICI Bank |
From 9.10 onwards |
beyond 10,403 |
up to 2 |
|
hdfc bank |
from 9.20 onwards |
beyond 10,428 |
Up to 1% (Rs. 3,500 to Rs. 9,000) |
|
Karnataka Bank |
8.88 – 11.37 |
10,350 – 10,964 |
0.60% (Rs. 3,000 – Rs. 11,000) |
|
Federal Bank |
beyond 8.85 |
beyond 10,343 |
₹2,000 – ₹4,500 |
|
Punjab and Sindh Bank* |
8.85 – 10.25 |
10,343 – 10,685 |
0.25% (Rs. 1,000 – Rs. 15,000) |
|
South Indian Bank |
beyond 8.75 |
beyond 10,319 |
0.75% (Max: Rs. 10,000) |
|
IDFC First Bank |
from 9.60 onwards |
beyond 10,525 |
up to Rs 10,000 |
|
City Union Bank |
9.90-11.50 |
10,599-10,996 |
1.25% (Minimum: Rs 1,000) |
Right Credit Score for Car Loan
Although some banks do not set a minimum credit score for giving a car loan, but a credit score above 750 is considered good for a car loan. Not only does this help you get a higher loan amount, but the interest rate is also expected to be lower. Conversely, if your credit score is low, you may face problems in getting a loan and may also have to pay higher interest rates.
Keep these things in mind before taking a car loan
Check Your Credit Score: A better credit score will help you get a loan at a lower interest rate.
Compare interest rates: Keeping in mind the offers of the festive season, it can be beneficial to compare the interest rates of different banks.
Processing Fee and Other Charges: Know in advance about the fees and other charges that will be levied during loan processing.
credit period: Calculate the loan tenure and EMI carefully so that there is less burden on your monthly budget.
The festive season is considered the best time to buy a car, but if you have to take a loan for it, then it is important to choose the offer with the right interest rate. By comparing interest rates, processing fees and other offers, you can not only buy a car at a lower price but also manage your budget in a better way.