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HomeLoan7 Best Car Loan in India 2022

7 Best Car Loan in India 2022

Best Car Loan in India – In good old days car was considered as a luxuries item. However, today car has become necessity even for the middle-class families. Not having a car restricts you and your family in multiple ways in your social & professional life.

Thanks to the car loan. Now you can fulfill your dream of buying car easily. Car Loan is available for new cars well as used car. You just need to provide income proof to avail a car loan.  There are multiple financial institution and banks in India that provides car loan facility. Among the range of financial institutions and banks, here is a list of 7 Best Car Loan in India 2022 and How to select best car loan in India.

best car loan

How to select Best Car Loan in India?

In order to select best car loan in India you need to consider following factors.

Interest Rate – Interest rate is one of the key differentiation while selecting a car loan. It is available with fixed and floating rate. It is always advisable to go for floating rate car loan with reducing balance. The floating rate interest varies from 8.5% to 11.50%.

Processing Fees and Time – The processing fees and time for processing car loan is another important factor of consideration. The processing charge is around 0.5% of the loan amount. However, few bank charges higher amount up to Rs.10000.

Loan Amount – You also need to consider maximum loan amount that is offered by bank. Most of the bank ask to make down payment of 5% to 10%. This amount is also called as margin. Some banks provide 100% finance of the ex-show room price. You need to pay additional amount such as duty, RTO passing charges and insurance amount.

Loan Tenure – The maximum loan tenure is 7 years. Your EMI will be low if you opt for longer period loan but you need to pay higher interest amount.

Prepayment or Foreclosure charges – Prepayment charges applicable on car loan varies from bank to bank. The charges are in range of 5-8%. You need to check prepayment charges applicable on car loan. Additionally, also look at the foreclosure charges.

Special Features – Many bank offers special features on these types of loan. You can check available features before taking a loan.

Also Read – Car Insurance Policy – Unusual Things you should know

7 Best Car Loan in India 2022

#1 SBI Car Loan

SBI is one of the largest public sector bank offering car loan. SBI provide finance up to 85% of the on road price. One of the major advantage of SBI car loan is processing charge is NIL. In addition to that SBI does not impose any pre-closure charges. Key features of SBI car loan are given below.

Eligibility Anyone from Age 21 years to 60 years
Interest rate 9.25% floating
Pre-closure charges NIL
Loan Term 7 years
Processing Fees NIL
Maximum Loan amount Up to 85% of the on road price

#2 HDFC Bank Car Loan

HDFC Bank is one of the largest private sector bank in India. HDFC offers range of services to customer including car loan. The car loan offered by HDFC is with attractive interest rate and minimum documentation. The loan approval process is very fast. Key features associated with HDFC Bank Car Loan are given below.

Eligibility Anyone from Age 21 years to 60 years
Interest rate 9 to 10.25% floating
Pre-closure charges NIL after 2 years
Loan Term 7 years
Documentation Charges Rs.600
Maximum Loan amount Up to 100% of the ex-show room price

#3 Axis Bank Car Loan

Axis Bank Car Loan is next in the list of best car loan. Axis bank offers car loan at the higher rate compared to other bank. However, they offer faster loan processing and quick disbursement. They provide finance up to 95% of the ex-show room price. Key features of Axis Bank Car Loan are given below.

Eligibility Age 21 years to 70 years at loan maturity
Interest rate From 9.05% to 11.3%
Pre-closure charges 5% of the principal outstanding
Loan Term 7 years
Processing fees Rs.3500 to Rs.5500
Documentation Charges Rs.300
Maximum Loan amount Up to 95% of the ex-show room price

 #4 ICICI Bank Car Loan

ICICI Bank is leading private sector bank. ICICI Bank offers car loan for new as well as pre-owned cars. The loan repayment term is flexible. The loan amount is up to 100% of the ex-show room price. Few important features of ICICI Bank Car Loan are given below.

Eligibility Age 23 years to 70 years
Interest rate 12.85% up to 3 years, 9.3% for 3 years to 7 years
Pre-closure charges 5% of the principal outstanding
Loan Term 7 years
Processing fees Rs.3500 to Rs.5500
Documentation Charges Rs.300
Maximum Loan amount Up to 95% of the ex-show room price

#5 PNB Bank Car Loan

PNB provides car loan for all types of vehicles such as car, jeep, van, multi utility and sport utility vehicle. Car Loans from PNB comes with one of the lowest interest rate in the industry. The loan tenure is also flexible. Key features of PNB Bank Car Loan are given below.

Eligibility Individual with minimum monthly income of Rs.20000
Interest rate Variable based on credit score
Pre-closure charges NIL
Loan Term 7 years
Processing fees 1% of the loan amount
Documentation Charges 1% of the loan amount
Maximum Loan amount Up to 85% of the ex-show room price

#6 Bank of Baroda Car Loan

Bank of Baroda offers loan for all types of vehicle including luxury cars. Bank offers loan up to 1 Cr including NRI. No prepayment or foreclosure charges applicable on Bank of Baroda Car Loan. Key features of Bank of Baroda Car Loan are given below.

Eligibility Age 21 years to 70 years
Interest rate Starts from 8.9%
Pre-closure charges NIL
Loan Term 7 years
Processing fees 0.5% of the loan amount
Maximum Loan amount Up to 85% of the on road price

#7 Central Bank of India Car Loan

Central Bank of India is public sector bank. It is one of the oldest commercial banks. This bank offers loan up to 75 Lakh. Car Loan from Central bank is available at very low interest rate. Key features of Central Bank of India car loan is given below.

Eligibility Age 18 years to 65 years
Interest rate Starting from 8.7%
Loan Term 7 years
Maximum Loan amount Up to 90% of the on road price

 

Over to you

The list given above is prepared based on the information available online. Use the list given above as a reference while you are opting for car loan. Make sure to compare all available options while opting for car loan.

Shitanshu Kapadia
Shitanshu Kapadiahttp://moneyexcel.com/
Hi, I am Shitanshu Kapadia founder of moneyexcel.com. I have written 1800+ articles on this blog. I am PGDBA(marketing), engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. The purpose of this blog is to spread financial awareness and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.
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