Which is the Best Bank for Car Loan?
By Anupama Deshpande | Mar 11, 2019
Everyone wants to buy a car as it is a very important part of one's comfort. Car loan becomes very helpful for a majority of the persons who wish to buy a car. Recognizing this need, now-a-days all the major banks and NBFCs are providing car loan to make this dream come true. A Car Loan is simply a loan wherein you borrow some amount from the lender to buy a car either a New Car or a Used Car.
Few major factors to be kept in mind while opting for a Car Loan are as follows:
- Lowest Interest Rate & EMI
- Available Loan Amount
- Loan Tenure
- Credit Score
- Processing Fee
- Foreclosure or Part-payment Charges
As there are many banks who are offering Car Loans still choosing the right bank is a quite tough task. You can take the help of Online Comparison Platform to compare car loan offers by different lenders and choose the best among them.
Suggested reading 3 Reasons Why Personal Loan for Used Car is a Better Option than Car Loan
Top 5 Car Loan Providers with Lowest Interest Rate (New Car Segment)
In the following table, you can find Top 5 Car Loan Providers with Lowest Interest Rate (New Car Segment):
| Lender | Interest Rate | Loan Tenure | Lowest EMI | Processing Fee |
|---|---|---|---|---|
| HDFC Bank | 9.25%-10.00% | 7 years | 1622 per lakh | 0.40% of Loan Amount (Max Rs. 10,000) |
| State Bank of India | 9.30%-9.80% | 7 years | 1624 per lakh | 0.51% of Loan Amount (Min Rs. 1,020 & Max Rs. 10,200) |
| ICICI Bank | 8.65%-16.70% | 7 years | 1591 per lakh | Min Rs. 3,500 & Max Rs. 8,500 |
| Kotak Mahindra Bank | 11.50%-13.50% | 5 years | 2199 per lakh | Min Rs. 3,300 & Max Rs. 4,750 |
| Axis Bank | 9.25%-11.50% | 8 years | 1478 per lakh | Min Rs. 3,500 & Max Rs. 5,500 |
Car Loan Market Share Wise Top 5 Car Loan Providers (New Car Segment)
You can find Car Loan Market Share Wise Top 5 Car Loan Providers (New Car Segment) in the table given below:
| Lender | Interest Rate | Loan Tenure | Lowest EMI | Processing Fee |
|---|---|---|---|---|
| ICICI Bank | 8.65%-16.70% | 7 years | 1591 per lakh | 2% of loan amount (Max Rs. 15,000) |
| Punjab National Bank | 8.75%-9.20% | 7 years | 1596 per lakh | 1.00% of Loan Amount (Max Rs. 6,000) |
| Bank of Baroda | 8.9%-10.65% | 7 years | 1604 per lakh | 0.75% of Loan Amount (Max Rs. 10,000) |
| IDBI Bank | 9.00% | 7 years | 1609 per lakh | Rs. 1,000 |
| Central Bank of India | 9.00% | 7 years | 1609 per lakh | 0.50% of Loan Amount (Min Rs. 2,000 & Max Rs. 20,000) |
Bottomline
Before deciding the bank for taking car loan, it is very important to compare all the available offers of car loans. You should also use Car Loan EMI Calculator to calculate the EMIs before availing a Car Loan. It will surely be helpful to plan your finance well in advance.
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Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.