The upcoming festival season is an ideal time to purchase a new car, with banks offering attractive car loan interest rates and incentives such as waived processing fees or offering up to 50 percent concessions on fees. Additionally, the recent reduction in GST rates to 18% for small cars under 1200cc has made car ownership more affordable, providing a great opportunity for buyers to consider new vehicle purchases. These rates take effect on September 22.
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When looking for a car loan, consider multiple options beyond dealership offers, such as banks, and loan aggregator websites, to compare rates and terms for the most suitable choice.
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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 7.85 percent to 9.99 percent, as of September 15. These are indicative rates, and the actual rates may vary because of the customer's credit profile, income, etc.
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Public sector lender Punjab National Bank charges 7.85 percent for a new car loan of Rs 10 lakh for a five-yeas tenure. The EMI works out to Rs 20,205.
The State Bank of India, India’s largest bank, levies an interest rate of 8.85 percent on a new car loan of Rs 10 lakh with a five-year tenure. The EMI comes to Rs 20,686.
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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.
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HDFC Bank charges 9.4 percent. The EMI comes to Rs 20,953. It’s a rack interest rate — it varies depending on loan amount, tenure and credit score.
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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.
