How To Choose The Best Car Loan Interest Rate of All Banks in India?

You must have noticed an increased number of cars around you. Nowadays everybody has a car. That too, of their own. But do you know that not everybody is financially able to buy the car by paying the full amount in one go? So how do so many people buy the car? Well, the answer is the car loan. With the help of a car loan facility or 4-wheeler loan, people can buy the car and repay the total amount in easy installments. But the important thing is to choose the best and affordable car loan interest rate of all banks that have been providing the four-wheeler loan. 


There are several banks and non-banking financial institutions that provide a car loan to customers at an interest rate which is affordable for them and easy to take. So if you are someone who is looking to buy a new or used car for your own or for some business purposes such as cab applications like Uber and Ola, then this article would be a good read for you. As we will be telling you about both new and used car loan facility and all the features related to it. So without any further delay, keep reading!


What is the importance of the Car Loan Interest Rate of All Banks?


When you look for a car loan and goes through different lenders who provide car loans, there is one important thing that you can not ignore. This is the interest rate offered by the lender. When you opt for a lower rate of interest, you will automatically have to pay a lower EMI amount. And similarly, you will have to pay a higher interest amount with the principal amount in case of a higher interest rate. 


That’s why choosing the best car loan interest rate of all banks available becomes so crucial when you are opting for a car loan.


What are some of the leading lenders who provide car loan?


We will tell you about some of the leading banks that provide both new and used car loans so that you can make a better decision. You can have a look at them below. 


SBI New Car Loan Scheme: Being the leading lender of our country, SBI offers a fantastic car loan facility to the individuals. It offers one of the lowest interest rates and hence lowers the EMI amount. Also, the amount you will get as the car loan will depend on the on-road price and SBI calculates the interest on the daily reducing balance. You can get a loan amount upto a maximum of 90% of the road price for a maximum of 7 years. The interest rate ranges from 8.65% to 9.35% per annum. 

HDFC Car Loan: With the help of a car loan facility from the HDFC Bank, you can own your dream car. With an interest rate ranging from 8.25% to 14.01% per annum which is one of the affordable car loan interest rate of all banks, you can opt for a loan amount upto INR 3 crores. You can pay this amount with the help of an easy EMI facility. The tenure ranges from a minimum of 12 months to a maximum of 84 months. Also, there is no foreclosure charges if you want to do it after the 24 months of the loan period.