The Top 7 Banks For Car Loans

By BankBazaar | February 11, 2016

The Top 7 Banks For Car Loans

Imagine cruising around in the car of your dreams – your chosen music playing in the background and the wind in your hair. That’s the stuff dreams are made of for anyone looking to acquire the luxury and comfort that a car offers. However, buying a new car can burn a hole in your pocket if you do not have the necessary finances.

There’s a good news, however. Gone are the days when you had to invest your entire savings, sell a kidney and your first-born child to buy a new car. These days most public and private-sector banks in India offer Car Loans at attractive interest rates.

So how do you go about applying for a Car Loan? What documents are required? How much can you borrow? All these questions can be quite baffling while applying for a Car Loan. Here are all the details of the Car Loan application process you’ll need for some of the top banks in India.

Name of Bank Car Loan Details
  SBI Car Loan SBI Car Loans are of the best means of buying your dream car. These loans are available for both salaried and self-employed professionals and also for partnership firms and agriculturists.
  SBI Car Loan benefits
  • The SBI Car Loan is available for a flexible tenure of up to 84 months
  • SBI does not charge any fees for pre-closure of a Car Loan
  • Customers can also enjoy the benefit of an additional SBI Life Insurance cover
  • Customers also get to enjoy an overdraft facility on their loan
  • The processing fee is just a minimal amount of 0.51% of the loan amount
  • Customers have the flexibility to opt to pay their EMIs at any time during the month and also no advance EMI is payable
 SBI Car Loan eligibility
  • Any salaried professional with a net annual income of Rs. 3 Lakhs can apply. The loan amount sanctioned will be 48 times more than the net monthly income. The salaried individual can have a co-applicant as well.
  • For self-employed professionals, the net annual income has to be Rs. 4 Lakhs. SBI generally sanctions a loan amount up to four times more than the net income
  • For agriculturists and other allied-sector professionals, the net annual income has to be Rs. 4 Lakhs. SBI sanctions loans up to three times more than the annual income of such applicants
  • Individuals in the age bracket of 21 to 65 years can apply for an SBI Car Loan
  SBI Car Loan documents
  • Last six month’s bank account statements
  • Two passport-size photographs
  • Copies of Passport or Voter’s ID or PAN Card
  • Proof of residence (any KYC document)
  • Latest salary slip for salaried professionals
  • IT Return form and Form 16 of the last two years for both salaried and self-employed individuals
  SBI Car Loan interest rates  SBI offers the lowest rate of interest on new Car Loans as compared to other banks. It offers a fixed rate of interest with a base rate of 9.30% per annum. SBI offers loans for men at 9.85% which is 0.55% above the base rate; and for women it is 9.80% which is 0.50% over the base rate.Note:  SBI Car Loan interest rates are as of the time of writing this article
   HDFC Car Loan

 

The best part of applying for an HDFC Car Loan is the comfort and simplicity of acquiring this loan. The entire process is hassle-free, extremely fast and customer-friendly which makes HDFC Car Loans popular with one and all.
   

 Features of HDFC Car Loan

 

 

 

  • The loan amount equates up to 100% of the vehicle’s cost
  • Loan disbursal is very quick and can be done within 2-3 days
  • Repayment tenure stretches up to seven years (84 months)
  • Your income document details are not mandatory as per the ‘No Income Document Scheme’
  • Fixed interest rates offers security against market upheavals
 HDFC Car Loan eligibility For salaried employees

  • The age bracket is within 21 to 60 years
  • You have to be employed for a minimum of two years out of which one year has to be with the current employer
  • The annual income has to be Rs. 1.8 Lakhs minimum (including that of a co-applicant)
  • Must have a fixed landline number or post-paid mobile number

                For self-employed individuals

  • The age bracket is within 21 to 65 years
  • You must be in the business for at least two years
  • The annual income has to be Rs. 60,000 (for standard cars) and Rs. 1 Lakh (for mid-sized and premium cars)
  • Must have a fixed landline number or post-paid mobile number

For self-employed (private limited companies)

  • The annual income has to be Rs. 60,000 (for standard cars) and Rs. 1.5 Lakh (for mid-sized and premium cars)
  • Minimal annual turnover of Rs. 4.5 Lakhs
  • Must have a fixed landline number at the office

For self-employed (public limited companies)

  • The annual income has to be Rs. 60,000 (for standard cars) and Rs. 1.5 Lakhs (for mid-sized and premium cars)
  • Minimal annual turnover of Rs. 4.5 Lakhs
  • Must have a fixed landline number at the office
   

 

 

 

 

 

HDFC Car Loan interest rates

 

 

 

 

 

 

 

 

 

 

 

The base interest rate of an HDFC Car Loan ranges from 10.14% to 13.75% depending on the vehicle. Apart from that, the other applicable fee is as follows:Processing Fee (non-refundable)

  • Up to 2.5 Lakhs- Rs.2825
  • Above 2.51 Lakhs to 4 Lakhs- Rs. 3850
  • Above 4.01 Lakhs to 5 Lakhs- Rs. 4300
  • Above 5.01 Lakhs to 10 Lakhs- Rs. 4650
  • Above 10 Lakhs- Rs. 5150

Late Payment Penalty– 2% on the applicable EMI per month.

Foreclosure Charges (from date of availing the car loan)-

  • Up to 6 months- No charge.
  • 1 year from 7th EMI- 6% on outstanding principal
  • 13 to 24 months from 1st EMI- 5% on outstanding principal
  • After 24 months from 1st EMI- 3% on outstanding principal

Note:  HDFC Car Loan interest rate and other charges are as at the time of writing this article

  Axis Bank Car Loan It’s extremely easy and convenient to apply for an Axis Bank Car Loan. The entire process is simple, transparent and extremely customer-friendly.
  Axis Bank Car Loan benefits
  • The Axis Bank Car Loan is available a tenure of up to five years
  • The ex-showroom price of the vehicle is used to calculate the Car Loan amount
  • Loans are available from Rs. 1 Lakh and above
  • There are special offers for customers with Axis Bank salary bank accounts
  • Axis Bank also offers banking surrogate schemes
  •  On select models, an LTV of a maximum of 95% of the ex-showroom price is offered
  Axis Bank Car Loan Eligibility Salaried Professionals

  • You should aged between 21-75 years.
  • You should have a minimum net annual income of Rs. 2.4 Lakhs and this has to be supported by the latest salary slip and Form 16.
  • You must be employed for a minimum period of one year

Self-employed Professionals

  • You should be aged between 18-75 years.
  • You should have a minimum net annual income of Rs. 1.8 Lakhs for select models and Rs. 2 Lakhs for others.
  •  You must be in the business for at least the last three years

Self-employed non individuals

  • The company should have a minimum net annual income of Rs. 1.8 Lakhs for select models and Rs. 2 Lakhs for others.
  •  The company should be in business for the last three years
  • In order to meet the income eligibility, the latest two years ITR and audited financial of two years along with computation has to be submitted
  Axis Bank Car Loan interest rates 

 

The base interest rate of Axis Bank Car Loan ranges from 11.00% to 12.00%.Other Fees

  • Processing fee ranges between Rs. 3,500 to Rs. 5,500
  • Documentation charge of Rs. 300
  • Cheque bounce charge of Rs. 500
  • Foreclosure charges are 10% of the principal amount till six months. Beyond six months, 5% charge is levied
  • Late repayment penalty is 2% per month
  • Issuance of credit report charge is Rs. 50

Note:  Axis Bank Car Loan interest rate and other charges are as at the time of writing this article

 Andhra Bank Car Loan Andhra Bank is one of the premier public sector banks in the country which offers Car Loans at attractive interest rates. You get to borrow an amount of up to Rs. 50 Lakhs!
 Andhra Bank Car Loan benefits
  • Up to 85% “On Road” value of the car is financed by the bank
  • You can pay your EMIs in quarterly/half-yearly/yearly basis as per your budget
  • The repayment period is up to seven years
  • Minimum KYC documents are required for application process
  Andhra Bank Car Loan Eligibility 
  • Individuals with a minimum income of Rs. 1 Lakh can easily apply for the loan
  • Companies, firms and trusts who have Andhra Bank accounts can also apply

For further information about eligibility, please visit the nearest Andhra Bank branch

  Andhra Bank Car Loan interest rates 

 

The base interest rate of Andhra Bank Car Loan is 10.25%.

  • For Car Loans, up to 36 months tenure, the present rate is 10.75%
  • For loans beyond that tenure, the current interest rate is 11%

Other Fees

  • There are no charges for pre-closure or processing fees

Note:  Andhra Bank Car Loan interest rate and other charges are as at the time of writing this article

   Allahabad Bank Car Loan

 

 

Allahabad Bank Car Loan is easily available for salaried and self-employed people and also for businessmen, companies and firms. Even pensioners of State government and Allahabad Bank are eligible to apply the loan.
 Allahabad Bank Car Loan benefits
  • The margin for new cars is 15% of the vehicle’s on-road price
  • For Used Car Loans, the margin is 85% of the “Agreed Purchase Price” by the approved automobile dealer
  • You can avail up to three times of your net annual income as a loan
  • The repayment period varies up to a maximum of five years
  Allahabad Bank Car Loan eligibility 
  • For salaried professionals, the minimum gross monthly income should be Rs. 25,000. The repayment should be done three months before your retirement date
  • For retired individuals, the monthly pension should be a minimum of Rs. 15,000. The repayment should be done before you are 70 years old
  • For companies or firms, the net annual profit should be sufficient to cover the loan amount. The company or firm should have been in business for two years at least
  • For agriculturists, they should have a minimum of five acres of irrigated land holding
  Allahabad Bank Car Loan interest rates 

 

The base interest rate of Allahabad Bank Car Loan is 9.70%.Other Fees

  • 1.22% of the loan amount is charged as processing fees
  • 2.28% of the outstanding balance is charged as pre-closure fees

Note:  Allahabad Bank Car Loan interest rate and other charges are as at the time of writing this article

  Bank of India Car Loan Bank of India Car Loans are popular mainly because of their flexible repayment options, low interest rates and attractive discounts during festive seasons.
 Bank of India Car Loan benefits
  • You can avail up to Rs. 50 Lakhs for Indian make vehicles and up to Rs. 100 Lakhs for imported vehicles
  • NRIs can avail up to Rs. 50 Lakhs
  • You can get a loan of up to 24 times your gross monthly income in case you are a salaried professional.
  • Pensioners can get up to two times their gross annual income as a loan
  • For companies, the loan amount can be two times the average annual cash accrual
  • The repayment period is up to seven years
  Bank of India Car Loan eligibility 
  • Individuals aged between 21 and 65 years can apply
  • NRIs can jointly apply for the loan with a resident Indian who is a close relative
  • Minimum KYC documents are required for the application process

For further information about eligibility, please visit the nearest Bank of India branch

   Bank of India Car Loan interest rates

 

 

The base interest rate of Bank of India Car Loan is 9.70%.

  • For a new Car Loan, interest is calculated as Base Rate+0.45% interest rate
  • For Used Car Loans, interest is calculated as Base Rate+1.25% interest rate

Other Fees

  • Processing fee charged waived from 11.09.2015 to 31.12.2015

Note:  Bank of IndiaCar Loan interest rate and other charges are as at the time of writing this article

 Bank of Baroda Car Loan Bank of Baroda Car Loans are available at attractive interest rates with flexible repayment options.
   

 Bank of Baroda Car Loan benefits

  

 

 

 

  • The maximum loan amount can be up to Rs. 100 Lakhs
  • For Car Loans up to Rs. 15 Lakhs, a margin of 15% is offered on the on-road price of the new car. For loans above Rs. 20 Lakhs, a margin of 20% is given on the on-road price of the car
  • Hypothecation of a new vehicle is required as a security measure. The bank will keep a copy of the RTO registration document as well
  • The loan will be directly disbursed to the car dealer and not to the applicant
  • You will also need to take a car insurance policy along with the Car Loan
  • The repayment period is a maximum of seven years
  • Bank of Baroda also follows an inspection policy before and after sanctioning the loan
  Bank of Baroda Car Loan eligibility 
  • Individuals above 21 years and below 65 years can apply for the Car Loan
  • The loan amount is calculated depending on the age limit, salary, and repayment capacity
 Bank of Baroda Car Loan interest rates   The base interest rate of Bank of Baroda Car Loan is 9.65%.

  • For Car Loans amounting up to Rs. 15 Lakhs, a processing fee of 0.75% of the loan amount is applicable
  • For Car Loans amounting more than Rs. 15 Lakhs, a processing fee of 0.50% of the loan amount is applicable
  • Service taxes are applicable additionally to the processing fee charges
  • There are no pre-closure charges
  • Non-payment of EMIs will incur a 2% interest additionally on the regular rate of interest
  • Other miscellaneous charges like registration, stamp duty (as applicable in different Indian states) also need to be paid

Note:  Bank of Baroda Car Loan interest rate and other charges are as of writing this article

Now that you know all about the Car Loan application process for various banks, how about quickly trying our online Car Loan EMI Calculator to get an idea about your monthly EMIs?

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