Festive Season Car Loan Offers: During the festive season, many banks offer special offers on car loans like discounted interest rates, zero processing fees, up to 100% loan and freebies.
Car Loan Rates in Festive Season: Many people buy new cars during the festive season. During this time, most car companies also offer special festival discounts. Apart from this, banks offering car loans also come up with festival offers, which include other attractive benefits like low interest rates, discounts on processing fees. If you are also planning to buy a car this festive season, then you must compare the interest rates of car loans. This will not only reduce your EMI, but you can also get good offers.
How are interest rates decided on car loans?
While offering car loan interest rates to a customer, banks consider many things other than the RBI repo rate. For example, people with good credit scores often get loans at lower interest rates. If your credit score is above 750, then you can get more loan and may also have to pay lower interest rates. Apart from this, things like your monthly income, existing loan, car value, loan amount and tenure can also affect the rate of car loan.
Car loan offers during festive season
Many banks offer special offers on car loans during festivals like Navratri, Dussehra and Diwali. These include reduction in interest rates, waiver of processing fees, loan up to 100% of the car price, special discounts and freebies. Below is the information on car loan interest rates of some major banks. As an example, the EMI and processing fee for a loan of Rs 5 lakh for a tenure of 5 years is also given:
Name of the Bank | Car Loan Interest Rate (%) | EMI (in Rs.) | Processing Fees |
|---|---|---|---|
Car loan amount of Rs 5 lakh for 5 years | (as % of loan) | ||
Union Bank Of India | 8.70 – 10.45 | 10,307 – 10,735 | NIL |
Punjab National Bank | 8.75 – 10.60 | 10,319 – 10,772 | 0.25% (Rs. 1,000 – Rs. 1,500) |
Bank Of Baroda | 8.95 – 12.70 | 10,367 – 11,300 | Upto Rs 750 |
Canara Bank | 8.70 – 12.70 | 10,307 – 11,300 | NIL |
Bank Of India | 8.85 – 12.10 | 10,343 – 11,148 | 0.25% (Rs. 1,000 – Rs. 5,000) |
UCO Bank | 8.45 – 10.55 | 10,246 – 10,759 | Nil |
State Bank Of India | 9.05-10.10 | 10,391-10,648 | NIL |
IDBI Bank | 8.80 – 9.65 | 10,331 – 10,294 | ₹ 2,500 |
Maharashtra Bank* | 8.70 – 13.00 | 10,307 – 11,377 | NIL |
Indian Overseas Bank | 8.85 – 12.00 | 10,343 – 11,122 | 0.50% (Rs 500 – Rs 5,000) |
ICICI Bank | 9.10 onwards | 10,403 onwards | Up to 2% |
HDFC Bank | 9.20 onwards | 10,428 onwards | Up to 1% (Rs 3,500 – Rs 9,000) |
Karnataka Bank | 8.88 – 11.37 | 10,350 – 10,964 | 0.60% (Rs 3,000 – Rs 11,000) |
Federal Bank | 8.85 onwards | 10,343 onwards | ₹2,000 – ₹4,500 |
Punjab and Sind Bank* | 8.85 – 10.25 | 10,343 – 10,685 | 0.25% (Rs. 1,000 – Rs. 15,000) |
South Indian Bank | 8.75 onwards | 10,319 onwards | 0.75% (Max: Rs. 10,000) |
IDFC First Bank | 9.60 onwards | 10,525 onwards | Upto Rs 10,000 |
City Union Bank | 9.90-11.50 | 10,599-10,996 | 1.25% (Min: Rs 1,000) |
Right Credit Score for Car Loan
Although some banks do not set a minimum credit score for giving car loans, a credit score above 750 is considered good for a car loan. This not only helps you get a higher loan amount, but also the interest rate is expected to be lower. On the contrary, if the credit score is low, then apart from problems in getting a loan, you may also have to pay a higher interest rate.
Keep these things in mind before taking a car loan
Check your credit score: A better credit score will help you get a loan at a lower interest rate.
Compare interest rates: It can be beneficial to compare interest rates of different banks keeping in mind the festive season offers.
Processing fees and other fees: Know in advance the fees and other charges levied during loan processing.
Loan tenure: Calculate the loan tenure and EMI carefully so that it puts less burden on your monthly budget.
The festive season is considered to be the best time to buy a car, but if you have to take a loan for it, then it is important to choose an offer with the right interest rate. By comparing interest rates, processing fees and other offers, you can not only buy a car at a lower cost, but can also manage your budget in a better way.
