HDFC vs ICICI vs SBI: This Festive Season many will be looking to buy a new car. So, to help you make the right decision, below is a list of banks and the rate of interest they are offering for car loans this festive season. Car loan interest rates for amounts up to Rs 5 lakh, for new cars and tenures of more than five years, range at present from 8.45% to 9.20%, according to data collated by Paisabazaar.com.
Union Bank of India, Canara Bank, and Bank of Maharashtra Follow Close Behind
UCO Bank offers the most competitive rate. For a new car loan, it is offering up to 5 lakh for five years with an interest starting from 8.45%. At this rate, your EMI would be about Rs 10,246, and so it is quite an offer to bring down your monthly commitment.
Not far behind are the Union Bank of India, Canara Bank, and Bank of Maharashtra, which offer the same at 8.70%. The EMI per annum for the same can become approx Rs 10,307 for a Rs 5 Lakh repayment / loan tenure of five years. Therefore, these banks offer a good mix of saving on competitive interest rates and having a manageable amount in EMIs.
Both Punjab National Bank and South Indian Bank quote a marginally higher rate at 8.75% at the EMI of Rs 10,319 for a Rs 5 Lakh loan—the deals, however, still remain more than reasonable.
Indian Overseas Bank, and Federal Bank Provide Competitive Rates
IDBI Bank extends the facility of a new car loan up to a sum of Rs 5 lakh at correspondingly very attractive terms. At an 8.8% rate of interest and tenure of five years, borrowers would need to bear an EMI amounting to Rs 10,331. Probably not the lowest, but definitely comparable to the other deals doing the rounds.
Loans of 8.85% are available with Bank of India, Indian Overseas Bank, and Federal Bank, fixing the EMI at around Rs 10,343. These banks have also offered quite nominal rates with equated monthly installments also in control.
Bank of Baroda provides at 8.90% interest and an EMI of Rs 10,355 for a loan amount of Rs 5 lakh for five years—somewhat on the higher but still the affordable side for most borrowers.
State Bank of India (SBI) Offers Reliable Car Loan Options
State Bank of India (SBI) This is the largest lender in the country. They offer rates starting from 8.95%. The EMI for a 5 lakh loan comes at around Rs.10,367. The bank is widespread throughout the country, thereby being an old prominent lender whom customers can rely on.
IDFC First Bank charges at 9.00%, while rates for ICICI Bank are at 9.10%. So, though the difference between the two may not be huge in the EMI terms, but an EMI of Rs 10,403 is obtained with an EMI of Rs 10,379. The private sector banks present good competition but with a little higher EMI compared to the rest.
Another in the big league of private players, HDFC Bank, has an interest rate superior to its top options at 9.20%. An EMI of Rs 10,428 is indicated against your personal financials for the pricing.
In reality, the bank that you opt for, or the interest rate that the bank offers your car loan, is a measure of how financially fit you are. Work in these rates into your festive purchasing plans in order to find the right fit for you.