Best Car Loans 2020 in India

Best Car Loans 2020 in India

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Best Car Loans with updated Interest Rates

In today’s fast paced world, where time is of essence, owning a car has become a necessity – more like a basic need. Gone are the days when buying a car required months of deliberation. planning, back and forth visits to the bank for financing and then processing. So that Today we can buy a car way faster without worrying much about the finance. As a car loan cap be applied instantly with the click of a mouse.

Meanwhile What is more confusing today is that which car to buy and which bank to apply for loan. While the question of which car to buy is more personal based and depends on your individual requirement and preferences. So we can help you out with the finance part – what features to look for while applying for a car loan and best car loans in 2019 as per those features.

Here is a list of best car loans 2019 in India with interest rates and foreclosure charges:
BankInterest RateForeclosure charges
HDFC Bank9% – 10.25%3% – 6%
State Bank of India9.2% – 9.7%No charges
ICICI Bank10% – 12.75%5%
Axis Bank9.25% – 11.50%5% – 10%
YES Bank10.25% – 12.25%3% – 6%

Before looking at the features of a loan, let us look at what the bank looks at when you apply for a car loan. So that You should meet the basic eligibility criteria which is you should be an Indian national who is either salaried or self employed with certain yearly income. Hence, Why they check this is because they want to know your ability to pay back the loan. So Different banks have different age criteria for a car loan but most commonly the applicant should be greater than 21 years.

Once this is covered, next banks check is the credit history of the applicant. This is done by checking the Credit score of the applicant. Likewise The Credit Score is on a scale upto 900 – the higher the better and a score above 750 is considered a good score and banks would approve the loan if you have a score above 750. So that You can check your Credit Score before applying for a loan by clicking here

Check your Credit Score you can also check top 10 best credit cards in India.

Now let’s come to our main topic of discussion which is what features to look at when choosing in which bank to apply car loan.

 Interest Rate:

 Interest Rate is the most important criteria when applying for a car loan. Most banks have two type types of interest rates that they offer to the customers. Hence Floating rate of interest and fixed rate of interest. ITs rate depends on MCLR and changes during the tenure of the loan and fixed rate remains same for the entire tenure of the loan. So that As customers, what we want is the lower the interest rate the better

Tenure:

 Tenure is another important factor while choosing a car loan. Some banks offer maximum tenure of car loan of 5 years while other provide maximum tenure of upto 7 years. Hence As customers, we prefer higher tenure loan as it reduces our monthly payout of EMI. However we should also keep in mind that higher tenure means giving more to the bank as interest. For example, if we take a loan of 8 lacs for 5 years, at an interest rate of 12%, EMI for the loan with 5 year tenure would come to INR 17796 per month. whereas for the same amount and same interest rate, the EMI for 7 year tenure would come to INR 14122. So that Although this looks appealing to the customers as their monthly payout is less. what we should also look at is that in the 5 year tenure. Basically The total interest payout to the bank is INR 267760 and for 7 year tenure is INR 386248. which is considerably higher. Also the liability of the loan is for more time.

Processing fees:  

Processing fees varies for different banks. The Processing charges are collected upfront before the loan is processed/ disbursed. So Some part of the processing fee is retained by the bank even if the loan is not approved. As a thumb rule, we look for lower processing charges while looking for car loan. In addition to this, we should also look at other charges which are applicable at the time of loan processing and disbursal. Hence,this includes documentation charges, CIBIL Report charges, stamp duty, loan cancellation charges etc. So Some of the banks charge lower compared to other banks and hence are more desirable.

Foreclosure charges: 

So Many times it happens that we want to pre-close our car loan due to some reason like shifting to a new place. So You want to sell the car or want to take a new loan and wish to close this one. Basically What is to be noted here that different banks charge differently for foreclosing a loan. So that some being considerably higher than the others. Almost all banks don’t allow foreclosure till 6 months from 1st EMI. After that, the charges depend on how much duration of the loan is left at the time you want to foreclose the loan. So it is very important to compare foreclosure charges for different banks before applying for a car loan.

Similarly, Keeping all this in mind, you should select the best car loan based on your requirement.

We have compiled a list of best car loans based on different features
HDFC Bank Car Loan

New Car Loan comes loaded with attractive interest rates. This Bank prides itself on providing quick, easy and hassle-free services. So that their is no exception to this. Basically, HDFC Bank Car Loan gives customers upto 100% finance for buying their dream vehicle. So They also give lesser interest rates to their existing customers and even faster documentation and disbursal.

HDFC Bank Car Loan
Interest Rate9% – 10.25%
Processing Fees0.4% of loan amount
Foreclosure charges3% – 6%
Tenure1 year – 7 years
EligibilityAge > 21 & <65 | Income > 3 lacs pa
State Bank of India Car Loan

SBI Car Loan is considered as one of the best Car Loans in India. Therefore they not only provide attractive interest rates, their processing charges & other charges are amongst the lower in the industry.

SBI Car Loan
Interest Rate9.2% – 9.7%
Processing FeesUpto 6 lacs – INR 1000 | > 6 lacs – INR 1500
Foreclosure chargesNo charges
Tenure1 year – 7 years
EligibilityAge > 21 & <60
ICICI Bank Car Loan

Like everything else with ICICI Bank, their also comes with competitive rates, flexible options and minimal documentation. Likewise ICICI Bank provides upto 100% funding of the on road price for certain car models. Below is a brief summary of their main features.

ICICI Bank Car Loan
Interest Rate10% – 12.75%
Processing FeesINR 2500 – 5000
Foreclosure charges5%
Tenure1 year – 7 years
EligibilityAge > 23 & <70
Axis Bank Car Loan

Axis Bank has been a big market player in the loan world. Similarly In addition to giving high value loans and attractive interest rates.Hence, Axis Bank provides additional benefits to its priority banking, wealth Banking and Privee Banking customers. So They also provide upto 100% funding on certain models.

Axis Bank Car Loan
Interest Rate9.25% – 11.50%
Processing FeesINR 3500 – 5500
Foreclosure charges5% – 10%
Tenure1 year – 8 years
EligibilityAge > 21 & <70 | Income > 2.4 lacs pa
YES Bank Car Loan

YES Bank provides car loans for a loan amount of INR 1 lac to upto INR 5 crores. Therefore, They even make it possible for customers to own luxury cars with their loans. In Conclusion. So This ensures that they cover all segments of customers making it easier for everyone to own a car. You can find their important features listed below

YES Bank Car Loan
Interest Rate10.25% – 12.25%
Processing FeesUpto 1% (Min: 10000)
Foreclosure charges3% – 6%
Tenure1 year – 7 years
EligibilityAge > 21 & <65 | Income > 2 lacs pa

So what are you waiting for. Fulfil your dream of owning a car. Apply now for a car loan and bring your dream car home!

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