A long drive with your family members must be tempting you to buy a car. After all, life comes once and you should make most of it. But without a proper plan, everything falls apart and leaves you in a spot of bother. All of a sudden, you curse for the dream you lived and realized after the years of wait. With a planned way, though, a car not only helps you drive miles by miles but also soothe your pocket against the rampaging inflation scenario that’s building up now.
Talking about planning, the first thing that comes to the mind is interest rate and its possible impacts on your wallet. The health of a wallet holds key to your smooth driving on the road as well as the financial pitch. As there are more than a dozen of banks and other financial institutions waiting to make you a customer, you better make a car loan interest rate comparison before taking the all-important call. Let’s read this article containing information on interest rates of leading bankers, helping you compare and choose the best deal.
Car Loan Interest Rate Comparison Calculator
Keep the comparison calculator on by checking the interest rates of several lenders. To help you make an effective interest rate comparison, there are many online loan marketplaces which have enlisted the offers of leading banks and non-banking financial companies (NBFCs) on their portal. All you need is to go there, check the rates, compare them and choose the lowest of all. The interest rates can vary according to the income, credit score, the type of vehicle (new or old), brand, etc.
You may be tempted to buy a car after hearing the news of a bank slashing its MCLR by a particular percentage. Well, it’s not the actual interest rate, dear. Rather, it’s a benchmark on which the loans get priced. Yes, the slash of MCLR is a good indication. But you also need to check the spread that adds to the MCLR to arrive at the actual lending rates.
Car Loan Interest Rate SBI
The country’s largest and probably the most preferred lender, SBI, charges 8.70%-9.20% interest rate, with its 1-year MCLR standing at 7.95%. This rate is applicable when you buy the all-new car from the showroom. An older car, though, will cost you more as it comes at 12.60% per annum. State Bank of India (SBI) gives you 7 years and 5 years to repay the new and used car loan, respectively.
Car Loan Interest Rate HDFC
Giving a nail-biting run to SBI is the private powerhouse HDFC Bank, which despite a size that is way below the half of the public sector behemoth, tilts ahead at times. It would be safe to say SBI and HDFC interchange their first and second positions from time to time. And the reason for that is a bundle of attractive offers apart from the interest rates, which range from 9%-10.25% p.a. As much as 100% funding can be made by HDFC if the applicant passes the test of eligibility with flying colours. Normally, the lenders’ finance is restricted to around 85%-90% of the on-road price, which’s an addition of ex-showroom price, registration charges, insurance, accessories, etc.
Car Loan Interest Rate Axis Bank
Axis Bank goes one step ahead of the two by offering car loans starting from 8.35% per annum. Like HDFC, it also offers up to 100% funding on the on-road price. It now gives borrowers a maximum of 8 years to repay the car loan, much unlike other lenders that provides for 7 years.
Car Loan EMI Calculator
The interest rate comparison will draw you closer to the EMI Calculator. Lesser the EMI burden, more space you will get to spend on other needs. The calculator draws the repayment picture by showing you the indicative installments and the overall interest to be paid over the course of a loan tenure. All the calculator needs is loan amount, interest rate and tenure to draw the repayment picture in front of you. And it can be found online, making it easy for you to calculate your car loan repayment summary.
A car loan interest rate comparison is thus vital to assess your financial feasibility. A dream must not be a burden that you would carry along the years of repayment. Rather, it should be enjoyable and affordable at the same time.