Planning a new car? Here are the latest car loan interest rates from top banks
The interest rates on car loans in 2024 can greatly influence your monthly EMIs, making it essential to find the best deal possible. If you have a strong credit score, you may secure a more favourable interest rate. Check out the latest car loan interest rates offered by top banks this year.
With car prices climbing higher every year, financing a new vehicle has become more crucial than ever. The good news? Some banks now offer zero-down payment car loans, covering 100% of the on-road price for select models. This means you can hit the road in your dream car without the immediate burden of a down payment.
However, before you rev up your engines, it's essential to navigate the maze of loan options available. By understanding the interest rates, processing fees, and other charges associated with car loans, you can make a savvy, informed decision and ensure your new car doesn’t become a financial speed bump.
List of latest car loan interest rates offered by top banks
| Name of banks | Interest rate (%) | EMI (Rs) | Processing fee |
| UCO Bank | 8.45 - 10.55 | 10,246 - 10,759 | Nil |
| Union Bank of India | 8.70 - 10.45 | 10,307 - 10,735 | ₹1,000 |
| Canara Bank | 8.70 - 12.70 | 10,307 - 11,300 | 0.25% (Maximum ₹2,500) |
| Bank of Maharashtra | 8.70 - 13.00 | 10,307 - 11,377 | 0.25% (Rs. 1,000 - Rs. 15,000) |
| Punjab National Bank | 8.75 - 10.60 | 10,319 - 10,772 | 0.25% (Rs. 1,000 - Rs. 1,500) |
| State Bank of India | 8.75 - 9.80 | 10,319 - 10,554 | Up to ₹1,500 |
| South Indian Bank | 8.75 onwards | 10,319 onwards | 0.75% (Max: ₹10,000) |
| IDBI Bank | 8.80 - 9.60 | 10,331 - 10,525 | ₹2,500 |
| Bank of Baroda | 8.85 - 12.70 | 10,343 - 11,300 | Up to ₹2,000 |
| Bank of India | 8.85 - 10.85 | 10,343 - 10,834 | 0.25% (Rs. 1,000 - Rs. 5,000) |
| Indian Overseas Bank | 8.85 - 12.00 | 10,343 - 11,122 | 0.50% ( ₹500 - ₹5,000) |
| 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) |
| Karnataka Bank | 8.88 - 11.37 | 10,350 - 10,964 | 0.60% ( ₹3,000 - ₹11,000) |
| ICICI Bank | 9.10 onwards | 10,403 onwards | Up to 2% |
| HDFC Bank | 9.20 onwards | 10,428 onwards | 0.50% ( ₹3,500 - ₹8,000) |
| IDFC First Bank | 9.75 onwards | 10,562 onwards | Up to ₹10,000 |
| City Union Bank | 14.45 - 14.95 | 11,751 - 11,882 | 1.25% (Min: ₹1,000) |
(Source: Paisabazaar; Rates and charges as of 20th May 2024)
Bank of Maharashtra is offering a 0.25% interest rate concession for existing housing loan borrowers and corporate salary account holders. Similarly, Indian Overseas Bank provides a 0.50% interest rate concession to borrowers with credit scores of 800 and above, while those with credit scores between 750 and 799 receive a 0.25% concession. Additionally, there is a concession of up to 50% on processing fees for PSB Apna Vahan Sugam.
Factors affecting car loan interest rates
Car loan interest rates are influenced by several factors. Higher income often leads to better rates, particularly for salaried employees, although self-employed professionals with higher earnings can also benefit. Loan tenure affects rates, with longer terms typically having higher interest due to increased risk. Younger borrowers often receive better terms as they have more time to repay. A good relationship with the bank, such as being a long-term client, can result in preferred rates.
The vehicle itself is also a factor; new cars from reputable manufacturers usually attract lower rates than older models. Adding a co-applicant can enhance repayment potential and secure lower rates. Employment at a reputable company can lead to better loan conditions, and a larger down payment can help negotiate lower interest rates. Finally, existing liabilities and investments are considered, with fewer liabilities often resulting in more favourable terms.
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First Published:21 May 2024, 11:19 AM IST
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