Top 10 Banks Offering the Best Car Loans in India

Owning a car is more than a style statement in today’s day and age, it is a necessity. In India around 80% of employed professionals are opting for car loans from various banks. With such a huge chunk of the population, going for financing options, different banks are constantly competing with each other to provide the best financing solutions to individuals. As the demand increases, banks tend to offer competitive interest rates, flexible repayment options and quick loan disbursal processes to attract more customers. With multiple players entering into the auto financing market, individuals have a never ending choice of car loan financing options. But does quantity bring quality? Now, that is a question every person availing a car loan should ask himself. Yes, there are numerous banks to choose from but are they offering customers comprehensive loan packages? How much would an individual end up paying or saving in the long term?

The best car loan scheme should ideally offer a customer affordable interest rates, easy repayments and excellent return on investment. Generally car loans are availed for a fixed period of time with variable and fixed interest rates. Banks tend to offer more car loans to customers as they are secured. A bank decides to lend a car loan based on the financial status of the customer, his eligibility, market demand etc., and generally lends up to 80% to 90% of the car value. To avail a good deal on a car loan, a customer should do thorough research on the loans available, decide on the car model he wants to buy, evaluate his finances and choose his best payment option.

In India, we have multiple banks offering car loan schemes with low interest rates and easy payment options. Here are the top 10 banks offering the best car loans in order of ascending interest rates:

 

IDBI Bank Car Loan – IDBI Bank offers exciting car loan options for a wide range of vehicles for a period of seven years with the lowest fixed interest rate of 10.25% p.a.

State Bank of India Car loan – SBI offers compelling car loans with different interest rates for women at 10.40% and for men at 10.45%.

Bank of Baroda Car loan – Bank of Baroda provides car loans at an interest rate of 10.50% and as a unique feature also gives a customer the facility for installation of CNG-LPG gas kits in four wheelers.

  

Bank of India Car Loan – BOI’s Star Vehicle Loan Scheme has exciting car loan deals at an interest rate of 10.65% p.a.

 

Union Bank of India Car Loan – Union Bank of India offers a comprehensive car loan plan with a fixed interest rate of 10.70% p.a.

 

Canara Bank Car Loan - Canara bank provides car loans up to 90% of the car value with easy monthly instalments at an interest rate of 10.70% p.a.

 

Indian Bank Car Loan – Indian Bank offers car loans at an interest rate of 10.75% p.a.

 

Corporation Bank Car Loan – The Corp Vehicle scheme can be availed with a floating rate of interest of 10.75% to 11.25%.

Syndicate Bank Car Loan - Syndicate bank provides auto financing options at an interest rate of 10.90% p.a.

 

Dena Bank Car Loan – Dena Bank offers car loans at variable interest rates of 11.00% to 12.00% and easy repayment options.

Consumers should decide on the make and type of car they want to buy as car loan interest rates are generally based on the model of the car. Popular car models tend to have better interest rates and help the customer to minimize his loan amount.  Since the auto financing market is very competitive an individual should compare and choose the bank offering the lowest interest rate and flexible EMI options to get the best deal possible.

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