The second COVID-19 wave is bound to hit retail demand for new cars, but if you are planning to buy one, the interest rate scenario is in your favour.
Banks continue to offer cheap interest rates on car loans. Punjab & Sind Bank leads the list with 7 percent for a car loan of Rs 10 lakh, followed by Central Bank of India, which offers an interest rate of 7.25 percent. The top ten list of cheapest offers is dominated by public sector banks. India’s state-owned banking behemoth State Bank of India (SBI), with 7.7 percent, does not figure in the list. Neither do private sector majors ICICI Bank and HDFC Bank, which offer car loan rates starting at 7.9 percent and 7.95 percent respectively.
A note on the table
Interest rate on car Loan for all listed (BSE) public and private sector banks have been considered for data compilation. Banks for which data is not available on their websites have not been considered. Data collected from respective banks’ websites as on April 8, 2021. Banks are listed in ascending order on the basis of interest rate – that is, bank offering the lowest interest rate on car loan of Rs 10 lakh is placed at top and highest at the bottom. Lowest interest rate offered by the banks on loan of Rs 10 lakh is shown in the table. Equated monthly instalment (EMI) is calculated on the basis of interest rate mentioned in the table for Rs 10-lakh loan with a tenure of seven years (processing and other charges are assumed to be zero for EMI calculation). Interest rates mentioned in the table are indicative and may vary depending on the banks’ terms and conditions.
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