Car Loan Interest Rates 2024
Car loans can be availed at attractive interest rates starting from 8.70% p.a.
Depending on the lender, up to 100% of the on-road price of the car may be provided as a loan.
Car Loan Details
- Interest Rate (Monthly reducing balance) – Depends on the bank
- Processing Fees – Depends on the bank
- Loan Tenure – 1 year to 8 years
- Pre-closure Charges – Varies with bank
- Guarantor Requirement – Varies with bank
Note:The interest rates will differ from one bank to another. This makes it critical to compare the interest rates before choosing a loan to apply for.
Popular Car Loan Schemes
| Bank | Benefits | Features |
|---|---|---|
|
HDFC |
Loans for Luxury Cars |
Effective interest rate is 8.95% p.a. Maximum loan amount is up to Rs.10 crore |
|
State Bank of India |
Designed for professionals and agriculturalists with no Income Proof |
Effective interest rate is 8.75% p.a. onwards. Loan is provided for professionals and agriculturists |
|
Axis Bank |
Small Loans |
Effective interest rate starts from 9.20% p.a. You can avail a loan of Rs.1 lakh |
|
ICICI Bank |
Long Repayment Tenure |
The interest rates start from 9.10% p.a. The repayment tenure is up to 7 years. |
|
Federal Bank |
Free Personal Accident Insurance |
Effective interest rates start from 8.85% p.a. No income documents need to be provided |
|
Canara Bank |
Low-Interest Rates for Used Cards and New Cars |
Effective interest rate starts from 8.70% p.a.
Lower interest rates are provided for women |
Car Loan Interest Rate Comparison for All Banks
| Name of the Bank | Interest Rate (p.a.) | EMI for Rs.1 lakh for 7 years |
|---|---|---|
|
State Bank of India |
8.75% p.a. onwards |
Rs.1,596 onwards |
|
Canara Bank |
8.70% p.a. onwards |
Rs.1,594 onwards onwards |
|
HDFC Bank |
8.95% p.a. onwards (Rack Interest)k |
Rs.1,608 onwards |
|
ICICI Bank |
9.10% p.a. onwards |
Rs.1,614 onwards |
|
Axis Bank |
9.25% p.a. onwards |
Rs.1,619 onwards |
Eligibility Criteria and Documents Required
The car loan eligibility criteria can be different for different banks. The common criteria are as follows:
- Age of the individual must be between 18 years and 75 years.
- Minimum net monthly income of Rs. 20,000.
- At least one year of employment with the current employer.
- Must be salaried or self-employed, working for a government establishment or a private company.
To prove your eligibility, you’ll need to provide certain documents. Though this too is specific to different lenders, the common documents will be:
| Requirements | Individuals |
|---|---|
|
Identity proof (any of the following) |
Aadhaar, Passport, Driving license, Voters ID card, PAN card |
|
Address proof (any of the following) |
Aadhaar, Passport, Driving license, Ration card, Utility bills |
|
Proof of income |
Form 16, Salary slips, if you are salaried, Latest Income Tax Returns, Bank statements going back 6 months |
EMI Calculator
The Equated Monthly Installments (EMIs) that you will pay will depend on a few key factors. The higher the loan amount, the higher your EMI will be. Similarly, the shorter the loan tenure the higher the EMI. To find the best compromise between an affordable EMI and duration you should check out our car loan EMI calculator below.
You can easily use our Car Loan calculator by following these steps –
- Enter your principal amount, interest rate and tenure.
- Click and know your EMI payable
Feel free to use our EMI Calculator
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