24 Apr 2018
#FinancialBytes: Buying a car? Here are 6 best car-loan options
Written byRamya Patelkhana
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 Car Loan
SBI Car Loan Scheme offers low interest rates, quick disbursement
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.
Star Vehicle Loan
Bank of India's Star Vehicle Loan Scheme
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 Loan
Central Bank of India's Cent Vehicle Car Loan Scheme
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
Enjoy easy, fast disbursal, pocket-friendly rates with HDFC Car Loan
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
Punjab National Bank's Car Loan scheme offers interesting benefits
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 Car Loan
IDBI Bank's Car Loan Scheme is another popular option
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.