Comparison of Car Loan Interest Rates
In cases where a buyer is unable to find the source of credit a smart way to go for is auto financing. Lists of banks offers these auto loans on various bases and feature each boasting a quality service to their customers. After finding the desired vehicle the next step a buyer plans is a credit source if he is not happy with his present credit score. For that it is necessary to find a perfect place where he could avail a comfortable credit without any risk factors. Various banks offer this service but it is important to choose carefully.
Every bank has their own policy of loan strategies that differ in the amount allowed to the buyer, interest rates and the repayment period. After short listing the credit needed and the bank that he wishes to deal with, the next step is to seek them with the necessary documents that will help him avail the loan such as an updated income source showing all recent deductions. Then he can choose a long term or short term loan from the banker and the banker will offer your loan happily. Let’s concentrate on some highlights of a car loan. That’s the rate of interest that the bank presents.
Now that you are ready to shop, we’ll compare some interest rates provided by some popular banks. These banks provide different interest rates for used car and new car separately and a particular amount of processing fee. The banks that we will discuss here are ICICI Bank, HDFC Bank, Kotak Mahindra, Axis Bank, State Bank of India, Bank of India and Federal Bank. These are the popular banks that offer car loans, but there are almost 100’s of ventures that offer car loans with different interest rates.
- ICICI Bank offers a competitive interest rate between 11%-15.25% depending on the repayment payment of the loan for new cars and 16.00%-17.50% for used cars with processing fees from Rs. 2500/-.
- HDFC Banks also offer similar interest rates but with separate rates for corporate. The interest rates range from 11.25%-15.75% and processing fees starting from Rs. 2325/-.
- Kotak Mahindra provides interest rates of 11.50%-13.50% for new cars but a huge rate of 17%20% for used cars with a processing fee of Rs. 3300/-.
- Axis Bank has interest rates of 12.50%-13.50% for new cars and rates of 16.50%-18% for used cars with processing charge of Rs. 3000/-.
- SBI offers the lowest rates of 10.75% fixed rate for all repayment periods for new cars and 15.75%-16% for used cars with a processing fee 0.5% of the loan amount.
- Bank Of India provides a rate of 12.50%-13.50% but provides low interest rates of 13.50%-14% for used cars, with processing fee ranging with the loan amount.
- Federal Bank offers interest rates of 11%-12% and 14.50%-15% for new cars and used cars respectively with a low processing fee of Rs.1655/-.
Every bank has a common repayment period ranging from 12 months to 60 months but differ on the amount of interest rates during the period.
Off these the best car loan is found to be that offered by SBI for new cars and Bank Of India for used cars.