Cheapest Car Loan: The auto industry was badly affected due to Corona. However, now the situation is gradually improving. To make their car dream come true, some people add capital for a long time and some people take loans from banks for this. Car loan rates are generally lower than personal loan rates. If you are planning to take a car loan, do note that most banks finance only 80-90 per cent of the on-road price of the car. This meant that the balance amount would have to be managed by the customers themselves. However, there are some banks that finance the full cost of the car on certain terms and conditions. There are 18 banks in the country that are giving loans at a rate of less than 8 percent per annum and Punjab and Sind Bank can get loans at the rate of 6.8 percent.
There is a recovery in the auto industry before the festive season. This can be estimated from the sales figures of July 2021. Maruti Suzuki’s sales grew 37 percent year-on-year in July, Hyundai’s sales grew 26 percent and Tata Motors’ 101 percent. These sales figures are indicating that now many people are giving priority to commuting by their personal means instead of corona virus public transport.
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Required information before applying
- According to online marketplace bankbazaar.com, car loan interest rates depend on age, income, credit score, loan amount, etc. In such a situation, before applying for a car loan, one should definitely find out the interest rates offered by all the banks according to their eligibility.
- Some banks also offer some additional discounts on car loans to their home loan customers, so find out about it too.
- Some banks offer pre-approved car loan deals to their select customers at attractive rates which are quick to complete.
Car loan is available at less than 8% rate in these 18 banks
Given below is the information of 18 banks, where you can get a car loan at less than 8 percent rate. Here is the calculation of EMI for a loan of Rs 7 lakh for a tenure of five years. Punjab and Sind Bank is offering Car Loan at lowest rate. A loan of Rs 7 lakh from Punjab and Sind Bank will be available for a period of five years at a minimum rate of 6.80 percent and an EMI of Rs 13795 will be made. Keep in mind here that the interest rates depend on several factors such as age, income, credit score, etc.
(Disclaimer: All figures are taken from the respective bank’s website as on August 24, 2021. Here is the EMI calculation for a loan of Rs 7 lakh for a tenure of five years at the lowest rate that banks are offering Processing fee and other charges are not included in this calculation.)