Keeping in mind the social distancing in the current COVID era, many people are giving preference to their vehicles instead of moving from public vehicles. Due to this, many have bought their own car or are planning to buy. People who cannot buy new expensive cars or who are new in terms of driving, are turning to used cars i.e. second hand cars. Banks provide loans to help people in buying second-hand cars. Many banks have facility of used car loan. In some banks, the interest rate is also low. Let’s look at where the lowest interest rate is being used on loans for used cars…
Kotak Mahindra Bank: There are loans for both new and used cars. According to the bank’s website, at this time the annual interest rate for a car loan ranges from 6.50% to 20% annually.
Canara Bank: 7.30 percent to 9.90 percent annually
Bank of India: 7.35 per cent to 7.95 per cent annually, depending on different credit scores
Punjab National Bank: 8.55% per annum for women, PNB rides and corporates under floating rate option, from 8.55 per cent to 8.80 per cent per annum for different customers based on different credit scores
9.30% per annum for all customers under fixed rate option
SBI: 9.50% to 10.50% per annum depending on individual credit score
Union Bank of India: 10.40 per cent to 10.50 per cent per annum, depending on different credit scores
ICICI Bank: 12.00 percent to 14.50 percent annually
note: Before taking a used car loan, its processing fees and other terms and conditions should be found out by banks. For example, the amount of loan and how many years old the car will get the loan etc. Interest rate information is taken from the website of the mentioned banks.