Best Car Loans in India 2024
Owning a car is possibly every Indian’s dream. From luxury cars to sedans to sports cars, be it any kind, owning a car is on everyone’s wishlist. Although owning a car is expensive, car loans have made the task much more accessible.
Almost all leading Indian banks offer car loans at feasible interest rates today. Even the car loan sanction procedure is not cumbersome anymore. There are dozens of car loan options available from different banks. So if you are planning to invest in a car anytime soon and searching for the best car loans in India 2024 then look no further because we've covered you in our blog.
The first step is to decide what kind of car you want to buy or lease. For example, do you want an actual vehicle, an SUV, or something even more upscaled. Once this decision has been made, then there are some things that you should consider when looking into getting a car loan in India.
Such include things like what type of interest rate is offered by different lenders on different kinds of cars, how much down payment is required before taking out a car loan with them, what types of payments are allowed on these kinds of loans, and whether or not there are any other costs associated with taking out such a loan.
So before you apply for a car loan, please read our blog thoroughly and find out about the best car loan in India and factors to consider before applying.
Best Bank For Car Loan In India 2024
Following are the most affordable and the cheapest car loan in India, along with their respective car loan rates and processing fees-
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Bank Name |
Best Car Loan Interest Rate |
Processing Fee |
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7.20% p.a. onwards |
Starting from 0.40% of the Loan |
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8.50% p.a. onwards |
As per terms and conditions |
|
|
7.30% p.a. onwards |
0.25% of the loan amount, subject to a minimum of Rs.1,000 and a maximum of Rs.5,000 |
|
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7.00% p.a. onwards |
Rs.1,500 |
|
|
7.45% p.a. onwards |
Minimum: Rs.3,500, Maximum of Rs.7,000 |
Factors To Consider While Availing of The Best Car Loan
While availing of a car loan in India, it is important to keep a check on the following factors-
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Ensure That You Are Taking Out a Loan for the Right Car
If you are not sure which loan would suffice for the model of the car chosen, then it would be better to ask for assistance from your bank or financial institution so that they can help you choose the best one for your needs.
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Interest Rates and Other Charges
Suppose you are planning to get a bank loan for car. In that case, it is necessary to understand the loan sanction procedure, the applicable interest rate, and the knowledge of any additional charges. You should know these things before signing up for the deal since they can make or break your decision to take out this loan with them.
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Terms and Conditions
If you are looking for a car loan, there are a few things you need to keep in mind. For example, if you are planning to avail of a loan from your bank or any other financial institution, make sure that you check their terms and conditions. You can do this either online or by contacting them.
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Credit Score
You should also ensure that your credit history is clean and your credit score is high. If you have any defaults or bankruptcy in your credit history, it will be difficult for banks to give you a loan.
Best Banks For Car Loans India 2024: Overview
Following is an overview of the banks offering the best car loans
1) State Bank Of India
State Bank of India is an India-based banking and financial services company. The Company’s segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and Insurance Business. The Treasury segment consists of the entire investment portfolio and trading in foreign exchange and derivative contracts.
The Corporate/Wholesale Banking segment comprises the lending activities of the corporate accounts group, commercial client’s group, and stressed assets resolution group. The Retail Banking segment includes retail branches, primarily personal banking, lending activities to corporate customers, agency businesses and automated teller machines (ATMs).
The State Bank of India also offers the best car loan rates. As a result, it is often a top choice for new car buyers.
2) Federal Bank
Federal Bank Limited (the Bank) is a banking company considered one of the best banks for a car loan. The Bank provides banking and financial services, including retail banking, corporate banking, and treasury operations. Its segments include Treasury, Corporate/Wholesale Banking, and Retail Banking.
Its Treasury segment operations include trading and investments in government securities and corporate debt instruments, equity and mutual funds, derivatives, and foreign exchange operations on the proprietary account and for customers.
Its Corporate/ Wholesale Banking segment consists of lending funds, accepting deposits, and other banking services to corporates, trusts, partnership firms, and statutory bodies. Its Retail banking segment constitutes lending of funds, acceptance of deposits, and other banking services to any legal person, including small business customers.
3) Canara Bank
Canara Bank Ltd. is an India-based bank. The Bank's segments include Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations.
The Bank provides personal banking, corporate banking, non-resident Indian banking, Internet banking, and micro, small and medium enterprises (MSME) banking services. Its retail lending operations include education, car, housing, and other personal loans.
4) Bank of Baroda
Bank of Baroda is engaged in providing banking and financial services in India. Its segments include Treasury, Corporate / Wholesale Banking, Retail Banking, and Other Banking Operations. In addition, its geographical part includes Domestic Operations and Foreign Operations.
It offers personal banking services, which include savings accounts, current accounts, and term deposits. In addition, it provides a range of digital products, which includes instant banking, such as Internet banking, mobile banking, cards, WhatsApp banking, digital signage systems (DSS), self-service passbook printers, and automated teller machines (ATMs).
It offers a range of loans, such as home, personal, education, gold, and some of the lowest car loan interest rates in India, which it is noted for offering widely.
5) Axis Bank
Axis Bank Limited (the Bank) is an India-based banking and financial services company. The Bank's segments include Treasury, Retail Banking, and Corporate/Wholesale Banking.
The Treasury segment includes investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading, and foreign exchange operations and offers a central funding unit.
Axis Bank offers a range of home loans, personal loans, education loans, car loans, etc.
Conclusion
A considerable sum of money on a car is a significant investment. Therefore, it requires an ample amount of thoughtful money management decisions. Hence, while taking a car loan or even searching for the best car loan in India, it is necessary to consider your repayment capacities, the interest rates of banks, the type of car loan required, etc.
Thus, while owning a car has become possible for all with the availability of car loans across India, it is necessary to see the best viable option and consider all the factors before you get a car loan.
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Bavadharini KS