Car Loans
Finance in Bengaluru, India
The first question that comes to our mind when buying a car loan is, which is the bank that offers the lowest car loan interest rates? Do not worry, we bring you the latest list compiled from November 2014 with the banks that offer the lowest car interest rates.
However, interest should not be the only criteria while buying a car loan. Simply, because every bank has an interest rate based on their calculations. In short it depends on the number of factors like the amount of car loan you are taking, the tenure of the car loan, the income of the applicant or profit in case of self-employed etc. So, you have to take the overall impact and decide which car loan is suited to you.
The other important thing about car loan interest rates is that they vary very often and as and when there is a change in factors such as lending rates from RBI, market conditions, car input costs, competition etc. So be sure to double check with the bank, their website and any other reliable source before you choose the car loan.
Lastly, there are lot of hidden costs or charges applicable when you avail a car loan. We list you some of the factors you must consider while deciding a car loan with the cheapest interest rate.
Processing charges – check what is the percentage of car loan processing charges. Sometimes there are cases where banks have offers to waive off processing charges.
Fixed or floating interest rate: While to begin with fixed rates may be higher than floating interest rates, in the long run when you avail a fixed interest car loan, there is no fluctuation in the EMI.
In floating interest car loan, the rates may rise and fall along the tenure of the car loan. In short sometimes the EMIs might be cheaper while in some months the EMIs might get higher depending on the lending rates issued by RBI and other factors mentioned above.
You also have to enquire if you have pre-payment charges, partial payment in case you wish to close the car loan earlier than the stipulated time.
The list below is a general or entry level car loans or best car loan offers by various banks. So you will have to take due diligence and check with the banks that under what conditions are the following car loan interest rates applicable.