Buying a new car? Check the latest interest rates on loans offered by major banks & nbsp
Buying a new car is definitely among the greatest joys in the world. Buying a car is probably the second most expensive purchase a person will make in their life, after buying a home. There are different types of car loans available in the market today. However, while selecting a loan, borrowers usually prefer variable rates in view of lower interest rates.
As with any other loan, the main factor to consider while taking out a car loan is the interest rate offered on the loan.
Those looking to get a car loan should shop around for a lender who is willing to give you the right amount of the loan at the lowest interest rate. Here are the interest rates for auto loans in State Bank of India (SBI), ICICI Bank, HDFC Bank and Bank of Baroda.
SBI car loan
According to the SBI website, to take advantage of a car loan from the SBI, you must be an individual between the ages of 21 and 67. For permanent employees, the maximum approved amount will be 48 times the net monthly income. The minimum annual net income of the applicant or co-applicant if any, along with a minimum of Rs 3,00,000, shall be as per the SBI website.
For professionals, the self-employed and entrepreneurs, the maximum approved amount will be 4 times the net profit or total taxable income according to ITR after adding depreciation and paying off all existing loans. For people engaged in agriculture and related activities, the maximum amount will be 3 times the annual net income.
New car loans are available at a fixed interest rate from ICICI Bank. The interest rate on a car loan will remain at a fixed rate of interest during the term of the loan. The interest rate ranges between 7.50-9% depending on the term and other factors. Interest rates on new cars are determined by factors such as the auto sector, CIBIL score, customer relationship, loan term, etc., according to the ICICI Bank website.
Bank of Baroda
Bank of Baroda provides financing of up to 90%, according to its website. The interest rate ranges between 7% and 9.75%. Customers who do not purchase credit insurance coverage will be charged a risk premium of 0.05 percent, according to current standards.
Within six months of receiving the auto loan, foreclosure is not permitted for HDFC Bank Auto Loan customers. According to the HDFC Bank website, pre-closing will be charged within one year of the seventh EMI at 6% of the principal amount owed. Pre-closing within 13-24 months of the first EMI, 5% of the principal amount due and 3% of the principal amount due for pre-closing 24 months after the first monthly instalment.