Once, buying a brand new car was a dream for many people. I am not saying that today it’s not the dream, but in reality today buying a car has become a necessity. To provide comfort to your family people are more than willing to have one. But a lot of time it is seen that they could not pay the entire amount. That is the time when a car loan comes forward to help you. Right now, a lot of banks are coming forward with great offers. It’s up to you which one you select but before selecting, you should know that there are certain things which you need to check before applying for a car loan.
How to Apply for Car Loan at Low Interest Rates in India
The Down Payments
If you are looking for a car loan, the banks will seek around 15% to 20% as a down payment. If you can make a down payment more than that, certainly that will be good for you as then you will see that EMI which you are going to pay has reduced magically and you may negotiate for a lower interest rate as well. How to Apply for Education Loan to Study Abroad at Low Interest Rates in India .
Tenure and Interest Rates
This is certainly the most important point to check while applying for a car loan. Different bank offers different interest rates. The more the tenure of the loan is the lower the interest rate will be as the outgo of the interest will be higher in that situation. So, check the interest rates carefully before choosing the bank.
Your eligibility must be good to get a car loan at a lower interest rate. Usually the salaried persons get a lower interest rate than a self employed person. So, if you are self employed and your wife is a salaried person, try to take the loan in her name to reduce the interest rate.
These are the top 5 banks which provide the car loans at best interest rate. You can choose the one according to your liking.
|BANK NAME||INTEREST RATE||MAXIMUM AMOUNT||DURATION|
|SBI||>9.65% onwards||Up to 85% of the on-road price||1 to 7 years|
|PNB||9.40% – 9.75%||Up to 85% of the on-road price||1 to 7 years|
|AXIS BANK||9.5% – 15%||Over 1 Lakh||1 to 7 years|
|HDFC BANK||11.5% – 13.75%||Up to 100% of ex-showroom price||1 to 7 years|
|ICICI BANK||10.75% – 12.75%||Up to 100% of ex-showroom price||1 to 7 years|