Car Loan Interest Rates

By Author: Ackley Cooper Shaw
Total Articles: 211
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When it comes to buying a car the most important factor apart from deciding which one to buy is to find the best possible car loan interest rates. Acquiring a car loan in the best terms possible is very essential to feeling good about your newly acquired asset. Earlier Car loans used to come at a fixed rate of interest. That means that it would remain static all throughout the loan tenure giving you a steady EMI. Now they have moved on to floating rates. This has its advantages and disadvantages. The advantage being that the EMI comes down with the amount you pay off increasing. The disadvantage being that the floating rates means that you can suddenly be paying more than your original rate of interest if the rates get revised during the tenure of your loan. The following comparisons will give you a good idea of which bank offers you loans at what rate and should help in getting a bird’s eye view of it all in the same place without having to go from site to site.

Car Loan Interest Rates Offered By different Indian Banks

• ICICI Bank-
o New Car loan (floating rate of interest) starts at 11% ...
... uptill 15.25%. tenure offered from 12 to 60 months.
o For used cars the rate is between 16% to 17.5 %
o Processing fees is Rs 2500 to Rs 5000.

• HDFC Bank-
o Starts at 11.5 % to 12.25 % from 36 to 60 month tenures.
o For used cars the rates can vary from 15.25% (26-60 mnths), 15.75% to 18.75 %(12-24mnths) and special Corporate
o Rates of 13.75% to 15.75 % (36-60 mnths)
o Processing fees- Rs 2325 to Rs 4275.

• SBI-
o 11.25 % on new cars and between 17.25% to 17.50% (upto 36 months) on used cars. The processing fees is 0.5% of loan amount

• Kotak Mahindra-
o 11.50% to 13.50% (reducing method) for new cars, for used cars its 17% to 20% with a processing fee ranging between Rs3,300 to Rs 3,500.

• Axis Bank-
o Reducing method rate of 11.5% to 14.5 % on new cars and 16.5% to 18% on used cars with a processing fees of Rs 3000 to Rs 3500

Bottomline of it all is that most Car loans will start at an approximate 11 percent rate of interest and go upto 16.25 percent at a reducing rate method. Each bank will have its own requirement and assessment of processing fees. However, on and average you are looking at something like INR 3,000. Car loan tenures will vary from as low as a 1 year loan up to 5 years maximum and all banks will charge you for foreclosing the loan.

Author's Bio: Ackley has penned down different write-ups on cars & car loans.In this article he briefly describes many things concerning car loan interest rate.