Are you planning to buy a new car? So before you jump into the driver’s seat, you need to enquire about your loan options. Comparing the interest rates, processing fees, and other charges of at least 2 to 3 banks will help you make a smart decision.
Cheapest car loans in May 2024: Amidst rise in car prices, banks time to time review their loan eligibility criteria for car buyers. Most banks have now eased the difficulty level in terms of documentation for loan sanctioning by moving the whole process online. Besides, the lenders have reviewed their processing fee and the maximum loan amount eligibility for customers. Some top lenders are now offering zero-down payment car loans, disbursing loans upto 100% of the on-road price of vehicles.
Are you planning to buy a new car? So before you jump into the driver’s seat, you need to enquire about your loan options. Comparing the interest rates, processing fees, and other charges of at least 2 to 3 banks will help you make a smart decision. As a car buyer, you should know the latest updates on car loan rates and charges offered by various banks. There would be banks who might offer you a car loan with zero processing fee and the lowest interest rate. Here is a list compiled by paisabazaar.com on public sector banks offering the cheapest car loans.
UCO Bank
Interest Rate: 8.45% to 10.55%.
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,246 to Rs 10,759.
Processing fee (% of loan amount): NIL.
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Union Bank of India
Interest Rate: 8.70% to 10.45%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,307-Rs 10,735
Processing fee (% of loan amount): Rs 1,000.
Canara Bank
Interest Rate: 8.70% to 12.70%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,307-Rs 11,300
Processing fee (% of loan amount): 0.25% (maximum Rs 2,500)
Bank of Maharashtra
Interest Rate: 8.70% to 13%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,307-Rs 11,377
Processing fee (% of loan amount): 0.25% (Rs 1,000-Rs 15,000)
State Bank of India
Interest Rate: 8.75% to 9.80%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,319-Rs 10,554
Processing fee (% of loan amount): Up to Rs 1,500
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Punjab National Bank
Interest Rate: 8.75% to 10.60%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,319-Rs 10,772
Processing fee (% of loan amount): 0.25% (Rs 1,000-Rs 1,500)
IDBI Bank
Interest Rate: 8.80% to 9.60%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,331-Rs 10,525
Processing fee (% of loan amount): Rs 2,500.
Bank of India
Interest Rate: 8.85% to 10.85%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,343-Rs 10,834
Processing fee (% of loan amount): 0.25% (Rs 1,000 to Rs 5,000).
Indian Overseas Bank
Interest Rate: 8.85% to 12%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,343-Rs 11,122
Processing fee (% of loan amount): 0.5% (Rs 500 to Rs 5,000).
Bank of Baroda
Interest Rate: 8.85% to 12.70%
EMI (loan amount Rs 5 lakh for 5 years): Rs 10,343-Rs 11,300
Processing fee (% of loan amount): Up to Rs 2,000.
