The automobile market in India is one of the fastest growing in the world. It is also in the throes of a great change. While established brands are launching more and more models to attract the customer, they are also scampering to move ahead in the race to grab the nascent-but-inevitable electric car market.
But no matter whatever you settle for – ICE (internal combustion engine) technology or electric vehicles – you would probably need car loans, or auto loans to part finance your dream car. Let’s check the rate of interest that major banks are offering on auto loans (car loans). Please note that the following rates are for purchase of new cars.
SBI, PNB car loan interest rates
Let’s begin with the biggest bank in India, SBI. State Bank of India, that has more than 50 crore customers – more than the combined population of the US and Russia – charges rates between 9.15% and 10.10%. But these rates are for ICE cars. If you buy electric cars, you will get a loan at 9.05%-9.75% interest. The final rate will depend on the applicant’s credit score.
The second biggest PSU lender, PNB, charges between 8.8% to 9.55% on floating basis. On fixed rate basis the range is from 9.8% to 10.6%.
HDFC Bank, ICICI Bank car loan interest rates
The country’s largest private sector lender, HDFC Bank, charges a minimum rate of 9.40%. The actual rate depends on the amount borrowed, tenure & credit score. The second largest private bank, ICICI Bank, charges a minimum rate of 9.1%.
Axis Bank, BoB Rate of Interest
Axis Bank charges its customers interest rates starting from 9.40%. The rates go up depending on loan amount, tenure and credit score, which is true for all lenders. Bank of Baroda (BoB), a major PSU bank, charges a minimum of 8.95%.
Loan for full cost of car
The point to note is that many banks fund the entire amount of on-road price for a new car. While that obviously relieves the applicant of paying from his/her own pocket, it also increases the burden of EMI on the purchaser.
