In the last couple of years, all of us have witnessed the increasing traffic and pollution on the road. And if you’re someone who depends on public transport or rides a two wheeler, then you know the pain. Delay in public transportation ensures that you leave your home at least two hours in advance, thereby, spending a good four hours on the road, daily. And if you have been riding your bike through the incessant traffic and huge potholes, you know that you’re putting yourself in jeopardy every single day (may be time to bump up that Life Insurance?).
Buying a car might not increase your life span and guarantee safety, but it sure solves your problem of painful dependency on public transportation. The luxury to travel in an air-conditioned car while listening to your choice of music are just a few perks.
Don’t have a car? Well, owning a car these days is no longer a far-fetched dream; thanks to a plethora of Car Loan options available with different banks. Most banks offer Car Loans for both new and second-hand cars at attractive and affordable interest rates.
Additional Reading: How To Apply For A Used Car Loan
If you are looking to buy a car, it’s best you keep these documents handy:
- Photo ID and age proof
- Signed loan application form with photograph
- Address proof
- Last 6 months bank statement
- For salaried individuals – last 3 months salary slips and Form 16 or Income tax returns
- For self-employed individuals – last 3 years income tax returns with computation of income and last 3 years CA certified/audited balance sheet and profit and loss account
Additional Reading: How To Make Smart Financial Decisions When Buying A Car
Before you jump with these documents, let’s also explain the features of a Car Loan.
- Interest Rate: One of the most important features of your Car Loan is the interest rate that is charged by the bank. This figure varies from bank to bank.
- Processing Fees: This is a percentage of your loan amount banks charge for processing your loan. The percentage will differ from bank to bank. Some banks don’t charge processing fees.
- Loan Tenure: Depending upon the amount you borrow and the amount you can repay each month in the form of an equated monthly instalment, you will be able to decide the tenure for your Car Loan. Usually, the tenure for a Car Loan ranges from 1 – 7 years.
- Pre-closure charges: If you happen to repay your loan before the allotted time, some banks charge pre-closure charges too.
- Guarantor requirement: Although this isn’t compulsory, some banks insist on having a guarantor.
Additional Reading: Things To Think About When Buying A Car
Car Loan Interest Rates
To make things easier for you, we’ve put together a list of Car Loan interest rates on offer by some of the top-tier banks in the country.
| Bank Name | Interest Rate | Loan Amount | Tenure | Features |
| HDFC Bank Car Loan | 9.15% – 11.6% | Up to 100% of ex-showroom price | 1-7 years | · No guarantor required
· Part payment option available · E-approval available |
| ICICI Bank Car Loan | 9.10% – 13.25% | Up to 100% of ex-showroom price | 1-7 years | · E-approval available
· Top-up loan available · No guarantor required
|
| Axis Bank Car Loan | 9% – 11.50% | Up to 95% of ex-showroom price | 1 – 7 years | · Part payment available
· No guarantor required · E-approval available |
| SBI Car Loan | 9.25% | – | 7 years | · No pre-closure fee
· E-approval available · No guarantor required |
| Sundaram Finance | 9.50% – 11% | Up to 90% of the car cost | 1 – 5 years | · Door-step pick up service available
· No guarantor required |
| Yes Bank Car Loan | 10.25% – 12.25% | Up to 90% of the car cost | 1–7 years | · Conditional pre-closure after 6 months
· No guarantor required · E-approval available |
| Allahabad Bank Car Loan | 9.10% | – | 7 years | · No guarantor required
· No part payment fee
|
| Federal Bank Car Loan | 9.75% | Up to 90% of the ex-showroom price | 1-5 years | · E-approval available
· No guarantor required |
| Dena Bank Car Loan | 9.05% | Up to 85% of the vehicle cost | 1-7 years | · Part payment option available
· No pre-closure fee · E-approval available |
| Andhra Bank Car Loan | 9.2% | Up to 85% of car cost | 1-7 years | · Part payment option available
· No guarantor required |
If any of these interest rates interest you, then simply click on the button below to compare and apply for a Car Loan.
Note: Car Loan interest rates are as of the time of the writing of this article