All eyes are on the upcoming festive season, starting with Navratri on September 26, as it comes on the heels of two consecutive COVID-19-affected festive periods. Banking, automobiles and retail sectors, amongst others, are expecting bumper sales during the next two months. Despite consumer inflation (7 percent) in August hovering above the upper limit of Reserve Bank of India's (RBI) tolerance band (2-6 percent), which could result in another round of rate hike, many banks continue to offer sub-8 percent interest rates on car loans. It is likely that more attractive offers will come consumers' way once the festive season draws closer. Here's a list of ten banks that offer the lowest interest rates on new car loans of Rs 10 lakh with repayment tenures of seven years, as per Bankbazaar.com.
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At 7.65 percent, this public sector bank offers the lowest interest rate on a new car loan of Rs 10 lakh with a repayment tenure of seven years. The EMI will be Rs 15,412 on such loans.
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The country's largest bank charges an interest of 7.9 percent on Rs 10-lakh car loan with tenure of seven years. The EMI in this case will work out to Rs 15,536.
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With 7.95 percent^, HDFC Bank is third on the list of cheapest lenders in this car loan segment. The EMI will amount to Rs 15,561.
Just like HDFC Bank, state-owned Bank of Baroda also offers new car loans at an interest rate of 7.95 percent.
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At 8 percent, Karur Vysya Bank is next on the list of cheapest lenders for Rs 10-lakh car loan with repayment period of seven years. The EMI in this case will work out to Rs 15,586.
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ICICI Bank's car loan with an interest rate of 8 percent, is one of the ten cheapest offers.
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At 8.15 percent, Punjab National Bank is next on the list of lenders who are offering the lowest rates on car loans. On a Rs 10-lakh car loan with repayment tenure of seven years, borrowers will have to pay an EMI of Rs 15,661.
Bank of Maharashtra charges an interest rate of 8.2 percent on car loans of Rs 10 lakh with a tenure of seven years. The monthly loan installment to be paid will be Rs 15,686.
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Private sector major Axis Bank also offers an interest rate of 8.2 percent on car loans.
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Public sector lender Bank of India's car loans come with an interest rate of 8.25 percent. The EMI works out to Rs 15,711.
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Interest rates on car loans offered by all listed (BSE) public and private banks have been considered for the data compilation (excluding small finance banks and electric vehicle loans) by Bankbazaar.com. In case of banks where data is not available on their websites have not been considered. Data collected from respective banks' website as on August 30, 2022. Banks have been listed in ascending order on the basis of interest rate i.e. bank offering lowest interest rate on car loan is placed at the top and highest at the bottom. Lowest interest rate offered by the banks irrespective of loan amount is shown in the table. EMI is calculated on the basis of interest rate mentioned in the table for Rs 10-lakh loan with 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 it may vary depending on banks' terms and conditions. ^ Rack interest rate.
