Top 5 Banks Promising Cheapest Interest Rates on Auto Loans


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Investment

oi-Vipul Das

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Because the purchase of a car is such a large investment, many of us are interested in finding a car loan to make our driving dreams come true, especially because these financing options often have better interest rates than an unsecured personal loan. Keep in mind that lenders often provide loans of up to 80-90% of the cost of the vehicle on the road. In particular, auto loans are often offered for up to seven years. Although represented as a secured loan, the lender determines the appropriate interest rates for auto loans based on the borrower’s credit rating and other factors. If you are looking to buy a new car in the next few days, we have developed a set of 10 government and private banks now offering some of the lowest interest rates for new car loans for a loan amount of Rs 10 lakh in the country.

Top 5 Public Sector Banks Offering Lowest Interest Rates on Auto Loans

Here are the top 5 government banks in the country that currently promise the lowest interest rates on auto loans.

Banks Interest rate
Bank of Punjab and Sindh 7.00%
Central Bank of India 7.25%
Baroda Bank 7.25%
Canara Bank 7.30%
National Bank of Punjab 7.30%
Source: Bank websites

Top 5 Private Sector Banks Offering Lowest Rates on Auto Loans

Below are the top five private sector banks in the country now offering the best interest rates for auto loans.

Banks Interest rate
IDBI Bank 7.50%
ICICI Bank 7.90%
Karur Vysia Bank 7.90%
HDFC Bank 7.95%
Dhanlaxmi Bank 8.10%
Source: Bank websites

To note

There is also a processing fee, which is normally determined by the lender’s regulations. Nonetheless, a few banks offer auto loans to existing customers at reduced rates. Many banks now offer pre-approved auto loans to a limited group of customers, which can include lower interest rates and faster loan disbursements. Therefore, it is always important to compare the current auto loan offers from several lenders to find the rate that best meets your financial needs. Please keep in mind that we have only evaluated the lowest interest rate from each lender; the interest rate that applies to you may be higher depending on your loan amount, credit rating, occupation, or any other condition of your preferred bank.

Article first published: Thursday, May 27, 2021, 4:16 PM [IST]

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