Car Loan Lowest Interest Rates 2023
In today's world, a vehicle has become a necessity. Earlier, it was known to be a luxury item, but now it is the need of time. To purchase a four wheeler is yet another expense for the person who has a dream of owning a car. As a comfortable means of transport or as a status symbol in society, one deserves ownership of a car.
Now you no longer have to wait to buy your dream car because almost all the banks offer easy car loan upto 100% of value of the car. Car Loan is a perfect solution to fulfil your dream. You can get best car loan offers with lowest interest rates starting at 9.95%, having loan tenure up to 7 years with faster approvals and doorstep services.
Loan for cars ranges from small & compact cars to super premium cars, SUVs and MUVs. Car loan schemes of each bank differ in terms of interest rates and other factors like maximum loan amount, loan tenure, EMI, processing fees and prepayment fees. There are lots of benefits which are now available to the customer when availing of a car loan such as preferred pricing for existing customers, less documentation, plenty of repayment options, door-step service, faster processing time, etc. Some lenders even offer special rates of interest to their existing customers and those having good credit score.
To get Car Loan with lowest interest rate and lowest EMI, you are advised to compare interest rates and offers of all banks before making a final decision.
Car Loan at lower Interest Rate Feb 2023
| Bank | Interest Rate | Per Lac EMI | Tenure | Max. Loan Amount |
|---|---|---|---|---|
| Andhra Bank | 8.85% to 13% | ₹ 1601 | Max. 84 EMI | Maximum finance would be 90% for new car and 60% for pre-used car on the on Road Price with no ceiling on maximum loan amount for new cars and for old 4-wheelers (not older than 3 years), maximum loan amount is Rs.20 Lakh. |
| Corporation Bank | 8.85% to 13% | ₹ 1601 | Max. 84 EMI | Maximum finance would be 90% for new car and 60% for pre-used car on the on Road Price with no ceiling on maximum loan amount for new cars and for old 4-wheelers (not older than 3 years), maximum loan amount is Rs.20 Lakh. |
| Union Bank Of India | 8.85% to 13% | ₹ 1601 | Max. 84 EMI | Maximum finance would be 90% for new car and 60% for pre-used car on the on Road Price with no ceiling on maximum loan amount for new cars and for old 4-wheelers (not older than 3 years), maximum loan amount is Rs.20 Lakh. |
| Laxmi Vilas Bank | 10.05% to 12.80% | ₹ 1855 | Max. 72 EMI | Upto 85% of the car value. The maximum loan amount is Rs. 25,00,000 for a new car and Rs. 10,00,000 for a used car |
| Tamilnad Mercantile Bank Limited | 10.60% to 12.10% | ₹ 1691 | Max. 84 EMI | Maximum Rs. 1.5 Crore for new cars and Rs. 15 lakh for used car |
| Dcb Bank Limited | 11.01% to 11.14% | ₹ 1713 | Max. 84 EMI | Maximum Rs. 30 lakh |
| South Indian Bank | 11.65% to 17.60% | ₹ 1747 | Max. 84 EMI | Max. Rs. 1 Crore for new car and max. Rs. 50 lakh for used car |
| City Union Bank Limited | 12.25% to 12.75% | ₹ 2237 | Maximum 5 years | Maximum of Rs. 25 Lakh |
| Kotak Mahindra Bank Limited | 7.70% to 25% | ₹ 1544 | Max. 84 EMI | Upto 90% of the car value. The minimum loan amount is Rs. 75,000 |
| Hdfc Bank | 7.90% to 11% | ₹ 1554 | Max. 84 EMI | Maximum upto Rs. 10 Crore on a wide range of cars and multi-utility vehicles |
| Allahabad Bank | 8.60% to 12.90% | ₹ 1589 | Max. 84 EMI | For New Car: Maximum loan ceiling is Rs. 2 Crore For Used Car: Maximum loan ceiling is Rs. 1 Crore |
| Indian Bank | 8.60% to 12.90% | ₹ 1589 | Max. 84 EMI | For New Car: Maximum loan ceiling is Rs. 2 Crore For Used Car: Maximum loan ceiling is Rs. 1 Crore |
| State Bank Of India | 8.60% to 14.75% | ₹ 1589 | Max. 84 EMI | New Car - The loan will be given on individual basis looking into applicant's income and repayment capacity. Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc. |
| Bharatiya Mahila Bank Limited | 8.60% to 14.75% | ₹ 1589 | Max. 84 EMI | New Car - The loan will be given on individual basis looking into applicant's income and repayment capacity. Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc. |
| State Bank Of Mysore | 8.60% to 14.75% | ₹ 1589 | Max. 84 EMI | New Car - The loan will be given on individual basis looking into applicant's income and repayment capacity. Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc. |
| State Bank Of Hyderabad | 8.60% to 14.75% | ₹ 1589 | Max. 84 EMI | New Car - The loan will be given on individual basis looking into applicant's income and repayment capacity. Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc. |
| State Bank Of Patiala | 8.60% to 14.75% | ₹ 1589 | Max. 84 EMI | New Car - The loan will be given on individual basis looking into applicant's income and repayment capacity. Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc. |
| State Bank Of Travancore | 8.60% to 14.75% | ₹ 1589 | Max. 84 EMI | New Car - The loan will be given on individual basis looking into applicant's income and repayment capacity. Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc. |
| State Bank Of Bikaner And Jaipur | 8.60% to 14.75% | ₹ 1589 | Max. 84 EMI | New Car - The loan will be given on individual basis looking into applicant's income and repayment capacity. Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc. |
| Bank Of Baroda | 8.70% to 11.15% | ₹ 1594 | Max. 84 EMI | Maximum Rs. 5 Crore |
| Dena Bank | 8.70% to 11.15% | ₹ 1594 | Max. 84 EMI | Maximum Rs. 5 Crore |
| Vijaya Bank | 8.70% to 11.15% | ₹ 1594 | Max. 84 EMI | Maximum Rs. 5 Crore |
| Idbi Bank | 8.75% - 9.45% | ₹ 1596 | Max. 84 EMI | The loan will be given on individual basis looking into applicant's income and repayment capacity. There is no ceiling on maximum loan amount |
| Oriental Bank Of Commerce | 8.75% to 10.60% | ₹ 1596 | Max. 84 EMI | For individuals/Proprietorship concerns: Rs. 1 Crore or 25 times of Gross Monthly Salary |Pension | Income, whichever is lower. For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles). |
| Punjab National Bank | 8.75% to 10.60% | ₹ 1596 | Max. 84 EMI | For individuals/Proprietorship concerns: Rs. 1 Crore or 25 times of Gross Monthly Salary |Pension | Income, whichever is lower. For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles). |
| United Bank Of India | 8.75% to 10.60% | ₹ 1596 | Max. 84 EMI | For individuals/Proprietorship concerns: Rs. 1 Crore or 25 times of Gross Monthly Salary |Pension | Income, whichever is lower. For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles). |
| Axis Bank | 8.75%-13.80% | ₹ 1596 | Max. 84 EMI | Minimum - Rs. 1,00,000 Maximum - Upto 85% on-road funding |
| Bank Of India | 8.85% onwards | ₹ 1601 | Max. 84 EMI | Maximum Rs. 50 lakh |
| Indian Overseas Bank | 8.85% to 10.05% | ₹ 1601 | Max. 84 EMI | New car - Upto 90% of the cost of the car. Used car - Upto 75% of the market value of the car. |
| Icici Bank Limited | 8.85% to 11.25% | ₹ 1601 | Maximum 7 years | Loan up to 90% to 100% of ex-showroom price and Pre-Qualified Car Loans for existing customers |
| Federal Bank | 8.85% to 16.30% | Contact Bank Branch | ||
| Uco Bank | 8.90% to 10.55% | ₹ 1604 | Max. 84 EMI | New Car - Maximum finance would be 85% of the on Road Price i.e. Ex Show Room Price+ Cost of Registration +One Time Road Tax+ Insurance(one time) with no ceiling on maximum loan amount. Pre-used Car - Maximum upto Rs 15 lakh. |
| Canara Bank | 8.90% to 11.95% | ₹ 1604 | Max. 84 EMI | The loan will be given on individual basis looking into applicant's income and repayment capacity. There is no ceiling on maximum loan amount |
| Syndicate Bank | 8.90% to 11.95% | ₹ 1604 | Max. 84 EMI | The loan will be given on individual basis looking into applicant's income and repayment capacity. There is no ceiling on maximum loan amount |
| The Nainital Bank Limited | 8.90% to 12.50% | ₹ 1604 | Maximum 7 years | Max. Rs.100 lakhs |
| Bank Of Maharashtra | 8.90% to 13% | ₹ 1604 | Max. 84 EMI | 36 times of net monthly salary and 90% of the cost of car value depending on the repaying capacity |
| Indusind Bank | 8% onwards | ₹ 2028 | Max. 60 EMI | 85% of the ex-showroom price of the vehicle which varies depending on the model. Loan quantum is also dependent on the profile and income of the customer. |
| Catholic Syrian Bank Limited | 8% to 10.75% | ₹ 2162 | Max. 60 EMI | 80% of on the road cost including Invoice price, Road tax, Insurance Premium and Registration charges (subject to income wise eligibility) |
| Punjab And Sind Bank | 9.05% to 11.952.20% | ₹ 1611 | Max. 84 EMI | For Individuals & Proprietorship concerns: No maximum ceiling on amount of loan. For business concerns: Max. Upto 5 times the average annual cash accruals. |
| Central Bank Of India | 9.25% to 10.15% | ₹ 1622 | Max. 84 EMI | New Four Wheeler- max. upto Rs.200 Lakh(Indian/Foreign made Vehicle) Old|Second Four Wheeler Vehicle - max. Upto Rs.10.00 lakh |
| Karur Vysya Bank | 9.35% to 13.50% | ₹ 1627 | Max. 84 EMI | 60% to 90% of on the road cost of the car (subject to income wise eligibility) |
| Karnataka Bank Limited | 9.41% to 11.73% | ₹ 1630 | Max. 84 EMI | New Car - Up to 85% of on road price including cost of vehicle+Road tax+Insurance +Registration charges, subject to a maximum of Rs.75.00 Lakh Used Car - Maximum of Rs.20 lakh |
| Dhanalakshmi Bank | 9.60% to 10.20% | ₹ 1640 | Max. 84 EMI for new cars and max. 60 EMI for used cars | |
| Jammu And Kashmir Bank Limited | 9.85% | ₹ 1652 | Max. 84 EMI for new cars and max. 60 EMI for used cars | Cost of vehicle less by stipulated margin subject to repayment capacity |
Car Loan Eligibility
- Age: 21 to 60 years.
- Income Salaried : A minimum annual income of Rs. 1,80,000 is required
- Income Self-employed : A minimum annual income of Rs. 1,80,000 is needed
- Job/Business Salaried : Work experience of atleast 2 years with a minimum of 1 year with the current employer
- Job/Business Self-employed : A minimum of 2 years in the same line of business is needed
- Permanent employees of State/Central Govt., Public Sector Undertakings, Corporations, Private Sector Companies and reputed establishments.
- Professionals, self-employed and others who are income tax assessees and persons engaged in agriculture and allied activities.
Important Link About Car Loan
Important Points to Consider before Applying for Car Loan
(1) Choose the Best Lender
This is the most significant point as there are many lenders offering you a car loan but you should pay attention in choosing the best one among them who is offering you the desired loan amount at the lowest interest rate and very fast too.
You can get the help of online marketplace like codeforbanks.com to compare the various car loan offerings.
(2) Check your Credit Score beforehand
You must not forget to check your latest Credit Score before applying for car loan. It is very important to check it as it gives you opportunity to bargain with the lender, if you carry a decent credit score.
(3) Never Over Shop for the Car Loan
Always remember as to not to apply for the loan amount which you cannot afford to repay conveniently.
Mistakes to Avoid While Opting for a Car Loan
When we want to buy a car then we do proper research and homework to select the best car which we can afford. In the similar way, we should do through homework while opting for a Car Loan. We must avoid following mistakes while we are opting for Car Loan:
(1) Availing 100% Car Financing: You must not take a car loan of 100% of the value of a car but you should give some down payment. Nil down payment simply means that you will increase your interest cost as you have to pay more EMIs in future because you have not given any contribution from your side as a down payment for buying your Car. Try making a significant down payment to keep the overall cost of your car loan to a minimum.
(2) Selecting Longer Tenure of Car Loan: You must see as to how much maximum amount of EMI can you pay comfortably. If you are able to pay more EMIs then go for shorter tenure car loan as it will save your interest outgo to a large extent.
(3) Not Comparing Interest Rate of Different Lenders: You must compare the interest rates on car loan offered by different lenders before applying for car loan from any particular lender. Little difference in interest rate results into a lot of saving towards interest outgo in future for you.
(4) Not Checking Other Costs: You must explore other charges & fees involved in availing the loan. These costs include Loan Processing Fee, Administration Chares, Pre-payment Penalty, etc.
