Owning a car is a common aspiration for many Indians, encompassing a range from luxury cars to sedans and sports cars. While the expense associated with owning a car can be significant, the availability of car loans has significantly facilitated this endeavor.
Presently, most leading Indian banks provide car loans with reasonable interest rates, streamlining the loan sanction process. There is a multitude of car loan options offered by various banks, making it easier for individuals planning to invest in a car. For those seeking the best car loans in India in 2024, our blog has got you covered.
The initial step involves determining the type of car you wish to buy or lease, whether it’s a standard vehicle, an SUV, or a more upscale model. Once this decision is made, several factors come into play when exploring car loans in India.
Considerations include the type of interest rates offered by different lenders for various car categories, the required down payment before securing a car loan, acceptable payment structures for these loans, and any associated additional costs.
Before applying for a car loan, it is advisable to thoroughly read our blog to discover the best car loan options in India and understand the crucial factors to consider in the application process.
Best Bank For Car Loan In India 2024
Following are the most affordable and the cheapest car loan in India, along with their respective car loan rates and processing fees-
|Best Car Loan Interest Rate
|SBI Car Loan
|7.20% p.a. onwards
|Starting from 0.40% of the Loan
|Federal Bank Car Loan
|8.50% p.a. onwards
|As per terms and conditions
|Canara Bank Car Loan
|7.30% p.a. onwards
|0.25% of the loan amount, subject to a minimum of Rs.1,000 and a maximum of Rs.5,000
|Bank of Baroda Car Loan
|7.00% p.a. onwards
|Axis Bank Car Loan
|7.45% p.a. onwards
|Minimum: Rs.3,500, Maximum of Rs.7,000
Factors To Consider While Availing of The Best Car Loan
While availing of a car loan in India, it is important to keep a check on the following factors-
Ensure That You Are Taking Out a Loan for the Right Car
If you are uncertain about which loan is suitable for the chosen car model, seeking assistance from your bank or financial institution is advisable. They can guide you in selecting the most appropriate loan that aligns with your specific needs.
Interest Rates and Other Charges
If you are considering obtaining a bank loan for a car, it is essential to comprehend the loan sanction process, the prevailing interest rate, and be aware of any additional charges. Understanding these aspects before committing to the deal is crucial, as they can significantly influence your decision to proceed with the loan.
Terms and Conditions
When seeking a car loan, it’s important to consider a few key factors. If you intend to secure a loan from your bank or another financial institution, ensure to review their terms and conditions. This can be done either through online platforms or by reaching out to them directly.
It’s imperative to verify that your credit history is pristine and your credit score is elevated. Having defaults or bankruptcy in your credit history can pose challenges when seeking a loan from banks.
Best Banks For Car Loans India 2024: Overview
Following is an overview of the banks offering the best car loans
1) State Bank Of India
The State Bank of India, a prominent banking and financial services company based in India, operates through distinct segments. These segments encompass Treasury, Corporate/Wholesale Banking, Retail Banking, and Insurance Business. The Treasury segment manages the entire investment portfolio, along with engaging in foreign exchange and derivative contracts trading.
Within the Corporate/Wholesale Banking segment, the lending activities are divided among the corporate accounts group, commercial clients group, and stressed assets resolution group. The Retail Banking segment encompasses retail branches, focusing on personal banking, lending to corporate customers, agency businesses, and the operation of automated teller machines (ATMs).
Notably, the State Bank of India is recognized for providing competitive car loan rates, making it a preferred choice for many new car buyers.
2) Federal Bank
Federal Bank Limited, recognized as one of the premier institutions for car loans, operates as a banking company providing comprehensive banking and financial services. The Bank’s services encompass retail banking, corporate banking, and treasury operations, with segments structured into Treasury, Corporate/Wholesale Banking, and Retail Banking.
Within its Treasury segment, the Bank engages in trading and investments involving government securities, corporate debt instruments, equity and mutual funds, derivatives, and foreign exchange operations on both proprietary accounts and for customers.
The Corporate/Wholesale Banking segment focuses on lending funds, accepting deposits, and offering various banking services to corporates, trusts, partnership firms, and statutory bodies. Meanwhile, the Retail Banking segment involves lending funds, accepting deposits, and providing diverse banking services to legal entities, including small business customers. Federal Bank Limited stands out as a reliable choice for those seeking top-notch car loan options.
3) Canara Bank
Canara Bank Ltd. is an Indian-based financial institution with segments that encompass Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations.
The bank offers a range of services, including personal banking, corporate banking, non-resident Indian banking, Internet banking, and services tailored for micro, small, and medium enterprises (MSMEs). Within its retail lending operations, Canara Bank provides services for education, car loans, housing loans, and other types of personal loans.
4) Bank of Baroda
Bank of Baroda is actively involved in delivering comprehensive banking and financial services within India. The organization operates through distinct segments, namely Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. Its operational scope extends across Domestic Operations and Foreign Operations.
The bank provides a variety of personal banking services, encompassing savings accounts, current accounts, and term deposits. Additionally, Bank of Baroda offers a diverse array of digital products, including Internet banking, mobile banking, card services, WhatsApp banking, digital signage systems (DSS), self-service passbook printers, and automated teller machines (ATMs).
Furthermore, the bank extends a range of loans, including home, personal, education, gold, and is renowned for providing some of the most competitive car loan interest rates in India.
5) Axis Bank
Axis Bank Limited, an Indian banking and financial services company, operates across various segments, namely Treasury, Retail Banking, and Corporate/Wholesale Banking.
Within the Treasury segment, the bank engages in investments encompassing sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading, and foreign exchange operations. It also features a central funding unit.
Axis Bank provides a diverse array of financial products, including home loans, personal loans, education loans, car loans, and more.
Investing a substantial amount in a car constitutes a significant financial commitment, necessitating thoughtful money management decisions. Whether opting for a car loan or exploring the best car loan options in India, it is crucial to assess your repayment capabilities, scrutinize bank interest rates, and determine the most suitable type of car loan.
While the accessibility of car loans has made car ownership achievable for many in India, it is imperative to thoroughly evaluate options and consider various factors before securing a car loan.