Benefits of Owning a Car Owning a car offers immense convenience. It provides the liberty to travel at will without having to wait for public transportation or hail a cab. Whether you’re commuting for work, shopping for groceries, picking up children from school, or taking a weekend getaway, having a vehicle ensures you can do so with ease and alongside your loved ones.
Financing Your Car: Multiple Options There are various avenues you can explore when considering financing a car. From car loans to personal loans and other secured loan products like loans against property or gold loans, you have a plethora of choices. However, car loans often emerge as the most suitable option. This is primarily because secured car loans are usually available at a more competitive interest rate than unsecured loans like personal loans.
Factors to Consider Before Taking a Car Loan Before plunging into the market for a car loan, there are vital aspects to keep in mind. Typically, the loan amount offered only covers a certain percentage of the car’s total cost. Most lenders finance up to 85% of the ‘on-road’ price of the vehicle. The borrower is expected to arrange the remaining amount. Generally, these loans have a repayment tenure of up to seven years.
Evaluation of Car Loan Applications Lenders evaluate multiple factors when assessing a car loan application. Your credit score is paramount as it helps lenders gauge the risk associated with lending to you. Based on this, they can determine the interest rate offered. As part of the loan process, borrowers might also be required to pay a loan processing fee, which varies depending on the lender’s policies.
Available Concessional Interest Rates Existing borrowers, especially those repaying home loans, should inquire about concessional interest rates on car loans from their current lenders. Some lenders also offer pre-approved car loans to select or longstanding customers. These not only come with preferential interest rates but are also processed faster.
Banks Offering Competitive Interest Rates on Car Loans:
- UCO Bank: 8.70% Interest | EMI: 15,937 INR
- Bank of Maharashtra: 8.70% Interest | EMI: 15,937 INR
- State Bank of India: 8.75% Interest | EMI: 15,962 INR
- IDBI Bank: 8.75% Interest | EMI: 15,962 INR
- Bank of Baroda: 8.75% Interest | EMI: 15,962 INR
- South India Bank: 8.75% Interest | EMI: 15,962 INR
- Punjab National Bank: 8.80% Interest | EMI: 15,988 INR
- HDFC Bank: 8.85% Interest | EMI: 16,013 INR
- Bank of India: 8.85% Interest | EMI: 16,013 INR
- Union Bank: 8.85% Interest | EMI: 16,013 INR
Note: These interest rates are based on advertised rates from each lender. However, actual rates might vary based on your loan amount, credit score, profession, and the specific terms and conditions of your chosen lender.
