A car dream remains very much in the mind of the most because of the social esteem and style factor that result from buying the 4-wheeler. Packed with glossy interiors and exteriors, a car fulfills the innate stylish feel one would want to experience.
The dream is, however, a costly one to realize as it costs in lakhs to crores, prompting one to take a loan to fulfill the same. With loans come the phenomenon of interest rates, which add to the overall credit cost. Let me tell you that a car loan is widely accessible with a large number of banks and non-banking finance companies waiting eagerly to take you on board.
With so many institutions ready to make you a customer, you better make a car loan interest rate comparison to choose the right loan option and service the debt efficiently. So, give yourself the best chance to compare the interest rates reading this article.
Compare the Interest Rates of Top Car Finance Companies
India’s car finance segment is fragmented with the presence of many large and small banks and NBFCs in the space. At the same time, it’s intensely competitive with the announcement of rate ease making the rounds every now and then. You must know that finance is available to buy both new and used cars. The rates thus vary according to the type of cars you intend to buy.
Car Loan SBI
State Bank of India (SBI), one of the premier private lenders, provides a new car loan at an interest rate of 8.90%-9.40% per annum. Those having a CIBIL score of up to 750 and 650-749 would need to service the loan at 11.25% and 12.25% p.a. On the other hand, those buying the second-hand cars must get ready to service the debt at 12.80% per annum.
Car Loan Interest Rate HDFC
HDFC Bank, arguably the largest car lender with a maximum share in the vehicle finance segment, gives you the chance to drive both new and old auto wheels on the road at 9%-10.25% and 11.50%-17.50% per annum, respectively.
Car Loan Interest Rate Axis Bank
Giving a tough competition to others in the car finance space, Axis Bank provides new auto loans at 10.75%-11.25% per annum. On the other side, the private lender finances old cars at 14.50%-16.25% p.a.
Car Loan Interest Rate ICICI
ICICI Bank provides a new car loan at 10%-12.75% per annum. The setting of rates depends on the loan tenure chosen by the private lender. You can avail a new car loan for as long as 7 years. The loans taken for a period of up to 23 months, 24-35 months and 36-84 months are expected to bear 12.75%, 12% and 10% interest rate, respectively. Used car loans, though, would bear 15% interest rate.
Car Loan Interest Rate Comparison Calculator
Keep your lowest car loan interest rate comparison calculator on all the time while evaluating the car loan offers. The rates you choose must not only be lower but also fit into your budget to ensure a smooth repayment experience.
Car Loan EMI Calculator
After choosing a lender on the grounds of interest rate, the next responsibility lies in understanding the impact of it on your monthly EMIs, which stand for equated monthly installments combining a portion of both principal and interest repayments. You can know the effect using the car loan EMI calculator. And if you are wondering as to how can you find it, let me tell you it’s available online for use. All you need to do is to enter the amount of loan, interest rate and tenure in the calculator to get indicative EMI and interest over the chosen tenure.