Cheapest car loans: Banks that offer the best deals this festive season

If you have plans to buy a car, this festive season on Ganesh Chaturthi, Navratri, or Dussehra. Here are the banks offering the cheapest interest rate on car loans. According to Paisabazaar.com data, interest rates on new car loans of Rs 5 lakh, with a tenure of five years, range from 8.45 percent to 9 percent onwards for the top 15 banks.

Public sector lender UCO Bank charges 8.45 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure. The EMI will work out to Rs 10,246.

Union Bank of India, Canara Bank, and Bank of Maharashtra charge 8.7 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure, with the EMI amounting to Rs 10,307.

Punjab National Bank and South Indian Bank charges 8.75 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure. The EMI will work out to Rs 10,319.

IDBI Bank offers a new car loan of Rs 5 lakh at an interest rate of 8.8 percent onwards with a five-year tenure. The EMI in this case will amount to Rs 10,331.

Bank of India, Indian Overseas Bank and Federal Bank charges 8.85 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure, with the EMI amounting to Rs 10,343.

The state-owned Bank of Baroda charges an interest rate of 8.90 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure. The EMI in this case will amount to Rs 10,355.

The State Bank of India, India’s largest bank, levies an interest rate of 8.95 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure. The EMI will work out to Rs 10,367.

IDFC First Bank charges 9 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure, with the EMI amounting to Rs 10,379.

Private sector bank, ICICI Bank charges 9.10 percent onwards on a new car loan of Rs 5 lakh with a five-year tenure. The EMI will work out to Rs 10,403.

HDFC Bank, a private sector giant, offers a new car loan of Rs 5 lakh at an interest rate of 9.20 percent onwards with a five-year tenure. The EMI in this case will amount to Rs 10,428.

Data was collected from respective banks’ websites as of August 14. Banks have been listed in ascending order based on interest rate – the lender offering the lowest interest rate on car loans is placed at the top and the highest rate at the bottom. The lowest interest rate offered by the banks irrespective of the loan amount is mentioned here. EMIs are calculated based on the interest rate mentioned for a Rs 5 lakh loan with a tenure of five years (processing and other charges are assumed to be zero for EMI calculation). The interest mentioned in the table is indicative and may vary depending on the bank's terms and conditions.