The automobile industry has hailed the government's decision to overhaul the goods and services tax (GST) regime as a 'landmark' decision, expecting it to boost demand during the festival season by making vehicles more affordable. The new rates put internal combustion engine (ICE) cars into two tax slabs: 18 percent and 40 percent, while electric vehicles remain unchanged at 5 percent. These rates take effect on September 22.
2/14
During the festival season, car buyers can also look forward to loan offers from banks and financial institutions, featuring benefits such as zero foreclosure charges, flexible repayment options, zero processing fees and discounted rates for those with high credit scores. It is essential to review the terms and conditions to ensure you find the car loan best suited to your budget.
3/14
When searching for a car loan, don't just rely on dealership offers, explore banks, online lenders and loan aggregator websites to compare rates, terms, and conditions for the best fit.
4/14
Data from BankBazaar.com reveals that for a new car loan of Rs 10 lakh for a tenure of five years, public and private banks offer interest rates ranging from 7.8 percent to 9.99 percent, as of September 1. These are indicative rates and the actual rates may vary because of the customer's credit profile, income, etc.
The State Bank of India, India’s largest bank, levies an interest rate of 8.95 percent on a new car loan of Rs 10 lakh with a five-year tenure. The EMI comes to Rs 20,734.
10/14
IDBI Bank offers a Rs 10 lakh new car loan at 8.3 percent interest for five years with an EMI of Rs 20,420.
11/14
Axis Bank charges 8.8 percent for a five-year tenure. The EMI comes to Rs 20,661.
12/14
ICICI Bank charges 9.15 percent for a new car loan of Rs 10 lakh, for a five-year tenure. The EMI comes to Rs 20,831.
13/14
HDFC Bank charges 9.4 percent. The EMI comes to Rs 20,953. It’s a rack interest rate — it varies dep4ending on loan amount, tenure and credit score.
14/14
IDFC First Bank offers a Rs 10 lakh new car loan at 9.99 percent interest for five years, with an EMI of Rs 21,242.
