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10 Best Banks for Car Loan in India
Name of the lender | ROI on new cars | ROI on old cars |
|---|---|---|
State Bank of India | 8.55% to 9.30% | 11.15% – 14.65% |
Axis Bank | 8.55% – 13.05% | 13.35% to 16.90% |
ICICI Bank | 9.10% onwards | 11.25% onwards |
HDFC Bank | 10% | 15.05% |
Canara Bank | 9.30% to 11.85% | NA |
Punjab National Bank | 8.70% to 9.50% | 9.35% – 10.15% |
Union Bank of India | 8.80% to 10.55% | 12.65% to 12.75% |
Bank of Baroda | 8.40% – 11.85% | 11.60% – 14.35% |
Bank of Maharashtra | 8.7% – 10.3% | 11.85% - 14.7% |
Dhanlaxmi Bank | 10.55% – 13.95% | 12% – 15.40% |
Disclaimer: The rates of interest on new cars and old cars mentioned above are as of when this page was written and are subject to change. For exact rates, contact the banks or refer to their official websites.
1. State Bank of India Car Loan – Features and Benefits
- The interest rates on SBI car loan fall into the category of lowest in the market and are computed on a daily reducing balance.
- SBI gives car loans under 4 variants – SBI New Car Loan Scheme, SBI Loyalty Car Loan Scheme, SBI Assured Car Loan Scheme, and SBI Green Car Loan.
- Up to 90% of the car’s on-road price is provided as loan. This is inclusive of the registration cost, cost of accessories, extended warranty, insurance, annual maintenance, contract, etc.
- SBI offers an optional life insurance cover to its borrowers.
- The various car loan schemes offered by SBI are as follows:
1. SBI New Car Loan Scheme:
- Eligibility: Age – 21 to 70 years
- Loan tenure: Up to 7 years
- Loan amount:
- Salaried: 48x the net monthly income
- Self-employed: 4x gross taxable income
- Net profit agriculturists: 3x Net annual income
2. SBI Loyalty Car Loan Scheme:
- Eligibility:
- Current SBI home loan borrowers are eligible for this scheme.
- Minimum annual income required: Rs. 2 lakhs
- Loan tenure: Up to 7 years
- Loan amount: Will be impacted by various factors
3. SBI Assured Car Loan Scheme:
- Eligibility:
- Minimum age: 18 years, there is no upper threshold on the age
- Any income declared by applicants will be accepted.
- Loan tenure:3 to 7 years
- Loan amount:
- Minimum loan amount: Rs. 1 lakh, No cap on the maximum loan amount.
4. Green Car Loan for Electric Cars:
- Eligibility:
- Age: 21 to 70 years
- Loan tenure:3 to 8 years.
- Loan amount: contact the bank
2. Axis Bank Car Loans – Features and Benefits
- Both individuals and non-individuals can apply for this loan.
- Priority banking, private banking, and wealth banking customers of Axis Bank can enjoy special privileges on car loans.
- Waiver on documents and bank statements for the bank’s pre-approved and salaried account customers.
Key Highlights of the New Car Loan Scheme
Age: 18 to 65 years Loan tenure: Up to 8 years Loan amount: Minimum amount: Rs. 1 lakh Maximum amount: Up to 100% of road price |
3. ICICI Bank Car Loan – Features and Benefits
- You can get 100% of the road price as loan
- Flexible repayment durations of up to 84 months (about 7 years)
- Instant digital sanction.
4. HDFC Bank Car Loan – Features and Benefits
- These car loans will be tailored to meet the requirements of the borrowers.
- The loan comes with flexible repayment options
- The loan can be paid back in Step-up EMIs and Balloon EMIs.
- Borrowers who are existing customers of the bank are eligible for top-up loans. They can avail themselves of this without providing any documentation.
Key Highlights of the New Car Loan Scheme
Age: 21 to 65 years Minimum annual income: Rs. 3 lakhs Loan tenure: Up to 7 years Loan amount: Maximum loan of up to Rs. 10 crores |
5. Canara Bank Car Loan – Features and Benefits
- This loan can be used to purchase new or old cars by all individuals, firms, professionals, etc. However, Hindu Undivided Families or HUFs cannot avail of this loan.
- Up to 90% of the total value of the car can be obtained as loan, and this includes the registration charges, insurance premium, life tax, and invoice value.
- You will have to pay 10%, 15%, and 20% of the loan amounts to buy a new car costing up to Rs. 10 lakhs, above Rs. 10 lakhs and up to Rs. 25 lakhs, and above Rs. 25 lakhs respectively.
6. Punjab National Bank – Features and Benefits
- Punjab National Bank has tied up with reputed car manufacturers such as Tata Motors, Honda Cars India, Force Motors Limited, Maruti Suzuki India, and Mahindra and Mahindra to give the best car loan offers.
- Both individuals and businesses can apply for this car loan.
- Punjab National Bank offers both fixed and floating interest rates on the car loan.
- A collateral, security, or third-party guarantee must be provided to avail yourself of a PNB car loan. However, this condition is subject to a person’s financial merit.
Key Highlights of the PNB Car Loan Scheme
Eligibility: Minimum Net Monthly Income: Rs. 25,000 Loan tenure: Up to 7 years Loan amount: Maximum loan of Rs. 1 crore Minimum loan: Up to Rs. 1 crore or 25x net monthly income. |
7. Union Bank of India Car Loan – Features and Benefits
- You can apply for both new or old cars (Up to 3 years) with this car loan scheme.
- Companies or organizations can also apply for this loan.
- The borrower must make a down payment of 10% of the vehicle’s on-road price.
- The bank will not charge any penalties on the pre-closure of the loan.
Key Highlights of the Vehicle Loan Scheme
Eligibility: Both resident and no-resident Indians are eligible Age: 18 to 77 years Loan tenure: Up to 7 years Loan amount: No upper limit for new cars |
8. Bank of Baroda Car Loan – Features and Benefits
- You can apply for this loan to purchase passenger cars, SUVs, and MUVs for private use.
- This car loan comes with preferential interest rates for individuals who have a high credit score.
- The interest rates are computed on a daily reducing balance.
- There is no penalty on the pre-closure of car loans.
Key Highlights:
Eligibility: Age: 21 to 70 years Minimum credit score: 725 Loan tenure: Up to 7 years Loan amount: A loan amount of up to Rs. 5 crores |
9. Bank of Maharashtra Car Loan – Features and Benefits
- Low EMI
- Higher loan amount
- You can track the status of your loan application easily
- Has tie ups with approved car dealers to provide the best offers.
- The disbursal process is easy and simplified
- The processing fee is low.
- No hidden charges
- No pre-closure charges
- No prepayment or part-prepayment penalties.
- Interest charged on daily reducing balance
- Quick turnaround time
Key highlights of the Maha Super Car Loan Scheme
Eligibility: Resident Indian citizen Non resident Indians (NRIs) or persons of Indian origins (PIOs) Corporate – This includes Public Limited Companies or Private Limited Companies, etc. Firms i.e. sole proprietorship firm/Partnership/LLP/Trust/Society etc.) Finance available to corporate clients, firms, or companies. Quantum of loan: Maximum loan threshold Individual: Rs. 500.00 lakhs Non individual: Rs. 1000 lakhs Maximum funding upto 100% of the road price |
10. Dhanlaxmi Bank Car Loan – Features and Benefits
New Car Loan:
- You can get a loan of up to 90% of the road cost or 100% of the Ex-showroom cost, whichever is lower.
- The repayment tenure is flexible and goes up to 84 months.
- Quick and speedy processing.
- Repayment can be done through easy EMIs.
- Lucrative interest rates.
- Minimal documentation.
Used Car Loan:
- You can get a loan of upto 60% of the value of the vehicle
- Flexible repayment tenure ranging from 12 to 48 days
- Fast and speedy processing.
- Repayment through convenient EMIs.
- Minimum / hassle free documentation
FAQs on Best Bank for Car Loan in India
1. Which bank is best for car loans?
The best bank for car loans depends on factors like interest rates, loan tenure, processing fees, and customer service. However, State Bank of India (SBI), HDFC Bank, and ICICI Bank are generally considered top choices due to their competitive interest rates, flexible repayment options, and wide range of services. Axis Bank and Bank of Baroda also offer attractive terms for car loans, making them strong contenders. It's advisable to compare the specific loan offers from these banks to determine the best option for your needs.
2. Do I have to give collateral or security to take a car loan?
No security or collateral is required to avail a car loan.
3. Do banks offer car loans for electric vehicles at lower interest rates
Yes, many banks give loans for electric vehicles at lower interest rates.
4. What Bank is best to get a car loan?
The best bank to get a car loan depends on factors like interest rates, processing fees, and repayment flexibility. HDFC Bank is often preferred due to competitive interest rates, quick processing, and special offers. However, State Bank of India (SBI) and ICICI Bank are also popular for their extensive branch networks and attractive interest rates. It's essential to compare offers from multiple banks, including Axis Bank, Canara Bank, and others, to find the best deal for your specific needs.
Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.