Cheapest Car Loan: Due to Corona, most people are giving prominence of moving from their car to somewhere keeping in mind the social distancing. In such a situation, the trend of people regarding their car has increased. If people do not have the money to make their dreams come true, then many banks finance 100 percent of the cost of the car. Almost every bank in the country offers car loans, however, when talking about car loans at the cheapest rates, a car loan can also be taken from Canara Bank at the rate of 7.3 percent. Talking about the country’s largest bank SBI, SBI is giving a car loan at the rate of 7.5 percent on applying through the YONO app and is not taking any processing fee.
- State Bank of India (SBI) is providing car loans at the cheapest rates.
- On applying for a car loan through the YONO app, you can get a loan at the rate of 7.5 percent and no processing fee will have to be paid.
- If you do not apply from Yono app, you get a loan at the rate of 7.75-8.45 per cent per annum and you have to pay a processing fee of 0.4 per cent of the loan amount (GST separately), minimum Rs 1000 and maximum Rs 7500, GST extra.
- SBI provides finance up to 90% on the road price and the interest is calculated on the reducing balance every day.
- A repayment period of up to 7 years is available.
Bank Of Baroda
- Like SBI, Bank of Baroda finances 90 percent of the car’s on-road.
- The current home loan borrowers of Bank of Baroda, who have a good credit history, are also giving 0.25% discount to the interest rate of the car loan.
- Maximum loan tenure is 7 years.
- Every day the balance is calculated on the decreasing balance.
- A car loan incurs a processing fee of 0.5 per cent. However, the maximum processing fee is 10 thousand.
- Car loan interest rates range from 7.25 percent to 10.1 percent annually.
- Maximum loan amount: Rs 1 crore.
- Canara Bank finances 90 per cent for cars up to 25 lakh for Central / State / Government / Autonomous Bodies / PSUs personnel and 80 per cent for expensive cars. Provides 90 percent for other employees up to 10 lakh cars, 85 percent for 10-25 lakh cars and 80 percent for more than 25 lakh cars.
- Interest rate: 7.3 percent to 9.9 percent.
- Repair Tenure: 84 months.
- Processing Fee: 0.25% of loan amount, minimum of Rs.1000 and maximum of Rs.5000.
- HDAFC Bank provides 100% financing on some trains.
- Flexible repair tenure ranging from 12 months to 84 months.
- Maximum loan amount: 3 crores.
- Minimum 1% of the loan amount, processing fee, minimum of Rs 5 thousand and maximum of Rs 10 thousand.
- Interest rate: 8.8-10 percent.
- 100% financing of the on road price of the car.
- 3500-8500 Processing fees of Rs. Depends on car segment.
- ICII Bank offers car loans at the rate of 9.85 per cent for 12–35 months and 7.9–8.80 per cent per annum for 36–84 months.
Documents required for application of car loan
- Bank account statement for the last six months
- 2 passport size photographs
- Identity certificate (passport, PAN card, voter IT card or driving license etc.)
- Address proof (ration card, driving license, passport, telephone bill, electricity bill or life insurance policy etc.)
- Income certificate salary slip, Form 16
- IT Returns or Form 16 for the last two years
- In the case of non-salaried / professional / businessman, audited balance sheet, two-year profit and loss statement, Shop and Establishment Certificate / Sales Tax Certificate / SSI Registered Certificate / Copy of Partnership
- In the case of people associated with agriculture or related activities, photo-populated measles / chitta (where cropping pattern is given) – Patta / Khatauni (given land holding). All land should be on a free hold basis and the ownership proof should be in the name of the borrower.
Note: All information is taken from the website of the concerned bank. In the given list of important documents, some banks ask for address proof, identity proof, income certificate.