Best Car Loan Interest Rates 2022: Full Comparison, Eligibility Criteria, Processing Fee, Etc

With time, the price of the best cars in India is also rising thus saving money won’t help if you can’t wait to buy a four-wheeler. Get a car loan as several banks offer low car loan interest rates and also fully-finance the vehicle, even if your salary is as low as INR 3 L/ annum.

Instant loan approval, minimum to zero processing fees, short tenure, and tax benefits are other benefits borrowers will get. However, the eligibility criteria and scheme differ from bank to bank. To get the ideal deal, you must compare all the best car loan offers.

Check the full comparison here.

Top 5 Banks Offering Best Car Loan Interest Rates

1. SBI

One of the top banks in India, SBI has vast options for every kind of borrower; be it salaried employees or small businessmen. If you have a stable source of income then the bank can offer up to 48 times of loan amount to you.

SBI car loan interest rates-

• 7.25% to 7.95% for those opting for assured car loan scheme, NRI or SBI car loan scheme
• 7.20% to 7.90% under loyalty car loan scheme where interest rate increase by 1.75% after 1-year MCLR. The percentage is 0.5 % less for female borrowers.
• 9.25% to 12.75% as per the certified pre-owned scheme

Other Features & Eligibility Criteria-

1. Finance up to 90% loan of on-road price
2. Bank does not ask for any advance EMI
3. No processing fee till 31st Jan 2022

Eligibility– Minimum income up to Rs 3, 00,000/- for salary professionals, government employees, businessmen. Those engaging in agriculture and allied activists should have a minimum income of Rs 4, 00,000.

Credit Score– Borrowers should have at least 750 CIBIL scores to avail SBI car loan.

Loan Tenure- 7 years

2. Bank of Baroda

If your dream car is Lexus NX, Audi Q7, Ford Mustang, or any high-end luxurious car, then Bank of Baroda is the best lender. The bank lends up to Rs 1 crore and finances 90% of the car’s on-road price. Paperless documentation, low down payment, zero foreclosure charges, and quick processing time are the benefits you will get on financing from the Bank of Baroda.

Bank of Baroda car loan feature

• Interest rates- 7.25% onwards
• Processing fee– Rs 1500/- excluding GST
• Credit score- Minimum 725
• Loan Tenure– Borrowers get two options on loan tenure- 7 years on a new car loan and 3 years on a used car loan. However, this will increase the EMI and financing amount in the shortest tenure.

3. HDFC

HDFC offers custom-fit car loans where borrowers can choose to pay low EMI on the purchase of a big car. They can also choose the Balloon EMI option where a lump sum amount of loan is paid at the end and the rest is fixed for the tenure.

If you are already a customer of HDFC then you are eligible for its ZipDrive-Instant loan scheme. It comes with benefits like zero paperwork and instant disbursal of the amount.

The best part is that it provides 24×7 buying assistance so that they can apply for a loan after thorough research on the best cars in India. Even if your dream car is above Rs 1 crore, HDFC finance 100% amount.

HDFC car loan features and eligibility –

• Interest rates- 7.95% onwards
• Maximum loan amount- Rs 3 Cr
• Loan tenure- 12 months to 84 months
• Credit score- Minimum 700

Apart from these, the car loan comes with funding on insurance option that provides health protection to borrowers.

4. AXIS Bank

Axis bank provides the best car loan offers to both new and existing customers. As a customer, you will get an exemption from submitting bank statements and income documents. This is applicable only if you have been a customer for the past 3 months.

Eligibility criteria and car loan interest rates:

• Income- Borrowers must have at least Rs 2, 40,000/ annum salary and should be in working for a minimum of 1 year without any gap. Self-employed individuals should have Rs 1, 80,000 p.a of net business income to be eligible (only for selected models of the car)
• Car Loan Interest rates– Axis bank has a different slab of rates falling within 7.45 to 14.50% of the range. If you are buying an electric car then you will get a loan at a 50bps lower interest rate.
• Credit score– Those with more than 750 credit scores will easily get the loan as they are considered as a low-risk customer
• Loan Tenure– Up to 36 months

Others- Axis bank car loan comes with a few changes such as Swap charges, penal interest, loan cancellation, foreclosure, registration certification collect charge, etc. All these charges are kept low inclusive of GST.

Also Read: 10 Personal Loan Scams Signs You Must Be Aware Of

5. Kotak

Lastly, Kotak bank can be your best choice to get low car loan interest rates. The bank offers a fixed rate with no prepayment charges for 6 months. The loan tenure is also lowest than the above-mentioned options.

Kotak Car Loan eligibility and interest rate:

1. Income eligibility– Salaried employees earning Rs 1 L /annum and self-employed professionals or businessmen earning a minimum of Rs 0.60 L/annum can apply for a vehicle loan
2. Credit score– Applicants CIBIL score must not be below 700
3. Loan Tenure– Up to 5 years for both new and used car loan
4. Maximum amount– The bank furnishes 90% of ex-showroom and market value of four-wheeler
5. Interest rate– Starts from 6.50% onwards

These were the 5 best car loan offers that can fulfill your dream of owning a car. This is extremely beneficial for the small businessmen who need a vehicle for daily transportation purposes as they can avail of tax benefits.

[Note- The tax benefits on a car loan is applicable only on the interest rate and on principal amount] 

So apply now and before that use an online EMI calculator to get a clear picture of monthly EMIs. This will help you buy as per your budget so that other expenses are not affected. For full details of the best car loan offers, visit the official website of these banks.