#FinancialBytes: Buying a car? Here are 6 best car-loan options
Nowadays, having a car has become a necessity rather than a luxury. However, someone who has just started his professional career may not be able to afford a car. That's why car loans have become popular; they help individuals own a car by paying EMIs as per their budget. There are many car loans available but choosing the suitable option is extremely important. Here are 6 popular options.
SBI New Car Loan Scheme offers one of the best deals for financing new cars. Anyone between 21-60 years' age is eligible. Loan amount offered is upto 90% of the car's on-road price; interest levied is 8.9-9.4%. Repayment tenure is seven years with no advance EMIs. A processing fee of Rs. 1,000+GST (upto Rs. 6L loan) or Rs. 1,500+GST (Rs. 6L loan) is charged.
BOI Star Vehicle Loan Scheme is another option offering the best interest rate. Salaried/self-employed individuals and professionals aged between 18-65 years are eligible. Loan amount offered is 100% (upto Rs. 10L amount) or 85% (Rs. 10-25L loan) of the car's on-road price and interest rate is 9%. The maximum repayment tenure is seven years. BOI charges a processing fee of Rs. 500.
Cent Vehicle Car Loan Scheme is one of the best options in the market. Salaried and self-employed persons between the ages of 18-65 years can apply. A maximum of Rs. 75L loan amount can be availed; repayment tenure is seven years. The rate of interest is 8.85% (floating). Loan amount offered is 90% (upto Rs. 20L loan) and 80% (above Rs. 20L) of car's price.
HDFC Car Loan scheme offers up to 100% financing for new cars. Customers can enjoy 30-minute loan approval and quick disbursal. Interest rates start at 9.25% (depends on the down payment and other factors); repayment term is upto 7 years. The age of the borrower should be between 21-60 years. It charges a processing fee of 0.40% of loan amount capped at Rs. 10,000.
PNB Car Loan also offers one of the lowest interest rates in the market. Borrowers must have a minimum monthly income of Rs. 20,000. Interest rates start at 8.9% (floating) and 9.25% (fixed). It provides a maximum loan of Rs. 100L or 25 times the borrower's monthly income, whichever is lower. Loan amount is 85% of car's on-road price (90% for specified manufacturers' cars).
IDBI Bank Auto Loan (Car) can be availed by salaried/self-employed professionals with annual income of Rs. 1.8L (minimum) between the ages of 18-70 years. Interest rates are 9% (for existing IDBI customers; minimum three-month relationship) and 9.1% (for others); there is no processing fee. The loan can be repaid in upto seven years. Maximum loan amount offered is 90% of the car's ex-showroom price.