There are many different kinds of cars, and new models of both luxury and affordable cars are always being released. These days, everyone wants to possess a car, but they might not always have the necessary funds. They can apply for a car loan in that case.
People are searching for “Which is the best bank for car loan in India” to find out the banks offering the lowest car loan interest rate in India. But finding the best car loan offers is like finding a needle in a haystack. Without proper guidance, which is the best bank for car loan in India will remain a tough question for everyone.
Some of the best options for the lowest car loan interest rate in India are as follows:
- HDFC Car Loan
- SBI Car Loan
- Canara Bank Car Loan
- Bank of Baroda Car Loan
- Axis Bank Car Loan
- IDBI Bank Car Loan
In India, several lenders are offering car loans for 2024. Now let’s find out which is the best bank for car loan in India in 2024.
Which is the Best Bank for Car Loan in India?
The list below will help you find “which is the best bank for car loan in India”.
| Name of the lender | ROI on new cars | ROI on old cars |
| State Bank of India | 8.55% to 9.30% | 11.15% – 14.65% |
| Axis Bank | 8.55% – 13.05% | 13.35% to 16.90% |
| ICICI Car Loan | 9.10% onwards | 11.25% onwards |
| SBI Car Loan | 9.20% to 10.15% | – |
| HDFC Car Loan | 10% | 15.05% |
| Canara Bank Car Loan | 9.30% to 11.85% | NA |
| PNB Car Loan | 8.70% to 9.50% | 9.35% – 10.15% |
| UBI Car Loan | 8.80% to 10.55% | 12.65% to 12.75% |
| Bank of Baroda Car Loan | 8.40% – 11.85% | 11.60% – 14.35% |
| Bank of Maharashtra | 8.7% – 10.3% | 11.85% – 14.7% |
| Dhanlaxmi Bank | 10.55% – 13.95% | 12% – 15.40% |
SBI Car Loan:
Features:
- SBI Car Loan Interest Rate is the lowest car loan interest rate in India if calculated on a daily decreasing balance.
- SBI car loan interest rate makes it easy for the middle-class to own a car without breaking the bank.
- SBI car loan comes in four different categories: SBI Green Car Loan, SBI Assured Car Loan Scheme, SBI Loyalty Car Loan Scheme, and SBI New Car Loan Scheme.
- Up to 90% of the car’s on-road cost, which includes registration, accessory costs, insurance, extended warranties, yearly maintenance contracts, etc., can be financed.
- SBI offers its borrowers an extra life insurance policy.
| Car Loan Scheme | Eligibility | Loan Tenure & Loan Amount |
| New SBI Car Loan Scheme | Age: 21-70 years | Up to 7 years Salaried: 48x the net monthly income Self-employed: 4x Gross Taxable Income/Net Profit Agriculturists: 3x Net Annual Income |
| SBI Loyalty Car Loan Scheme | Meant for existing SBI Home Loan borrowers Minimum annual income: Rs.2 lakh | Up to 7 years Will depend on various factors |
| SBI Assured Car Loan Scheme | Minimum age: 18 years; no maximum age Income declared by applicants will be accepted | 3-7 years Min: Rs.1 lakh; No cap on maximum |
| Green Car Loan: For Electric Cars | Age: Between 21 years and 70 years | 3-8 years Contact the bank |
Bank of Baroda Car Loan
Features:
- Can be used to buy MUVs, SUVs, and passenger automobiles for personal usage.
- Gives people with a high credit score the advantage of reduced interest rates.
- Bank of Baroda Car loan interest rates are calculated using a daily decreasing balance.
- When auto loans are pre-closed, the bank does not impose any penalties.
| Car Loan Scheme | Eligibility | Loan Tenure & Loan Amount |
| Bank of Baroda Car Loan | Age: 21-70 years Minimum credit score of 725 | Up to 7 years Maximum loan of Rs.5 crore |
HDFC Bank Car Loan
Features:
- The HDFC Car loan is tailored to the needs of the clients.
- Offers step-up EMI and balloon EMI, two flexible repayment options.
- Top-up loans are available to current auto loan borrowers without any paperwork.
| Car Loan Scheme | Eligibility | Loan Tenure | Loan Amount |
| New Car Loan | Age: 21-65 years Minimum annual income: Rs.3 lakh | Up to 7 years | Maximum loan of Rs.10 crore |
Canara Bank Car Loan
Features:
- The Canara Bank Car loan can be utilized to buy either new or used four-wheelers.
- Canara Bank car loan offers up to 90% of the vehicle’s entire worth, which includes life insurance, registration fees, invoice value, and other expenses.
- 10%, 15%, and 20% of the loan amount must be paid to purchase a new car that costs up to Rs. 10 lakh, more than Rs. 10 lakh, and more than Rs. 25 lakh, respectively.
- With the exception of Hindu Undivided Families (HUFs), anyone—individuals, professionals, businesses, etc.—can apply for a Canara Bank auto loan.
| Car Loan Scheme | Eligibility | Loan Tenure & Loan Amount |
| Canara Bank Car Loan | Minimum annual income: Rs.3 lakh | Up to 7 years No cap on maximum loan amount |
IDBI Bank Car Loan
Features:
- A wide variety of automobiles and SUVs are available for purchase with an IDBI Car loan.
- To give borrowers the greatest offers, the bank maintains partnerships with automakers and dealers.
- ECS or standing instructions can be used to pay the EMIs.
- After six months of the loan’s term, partial payments and foreclosure are permitted. If you pay with your own money, there is no penalty.
| Car Loan Scheme | Eligibility | Loan Tenure | Loan Amount |
| Car Loan | Age: 18-70 years Minimum annual income: Rs.2.40 lakh | Up to 7 years | Offers higher sanctions for funding |
Car Loan from Punjab National Bank
Features:
- To provide the greatest rates on car loans, the bank has worked with top automakers like Tata Motors, Honda Cars India, Maruti Suzuki India, Mahindra & Mahindra, and Force Motors Ltd.
- This car loan is available to both individuals and companies for personal usage.
- For the car loan, the bank offers both fixed and variable interest rates.
- To obtain a car loan from Punjab National Bank, a collateral security or third-party guarantee is required; however, this requirement may be removed based on an applicant’s merits.
- Under the banner “PNB Pride Car Loan,” Punjab National Bank provides auto loans to government workers.
| Car Loan Scheme | Eligibility | Loan Tenure & Loan Amount |
| PNB Car Loan | Minimum net monthly income: Rs.25,000 | Up to 7 years Maximum loan of Rs.1 crore or 25x net monthly income |
XPress Car Loan from Karnataka Bank
Features:
- The loan is available to individuals and agriculturists who own agricultural assets.
- The Karnataka Bank XPress Car loan is available to non-resident Indians (NRIs).
- A loan of up to 85% of the vehicle’s on-road cost may be offered.
- Both new and second-hand cars are eligible for loans.
| Car Loan Scheme | Eligibility | Loan Tenure & Loan Amount |
| KBL XPress Car Loan | Minimum Age: 18 years | Up to 7 years Maximum of Rs.75 lakh |
Which bank is best for auto loan?
Check out the factors below to find out which bank is best for a car loan. Along with the Car loan EMI calculator, these factors will help you determine the car loan interest rate of different banks before you apply for a car loan.
Make sure the loan you are taking out is for the appropriate vehicle.
Asking your bank or other financial institution for aid in selecting the appropriate loan for your needs is preferable if you are unsure which loan would be adequate for the automobile model you have selected.
Car Loan Interest Rate and Other Charges
Suppose you are planning to get a bank loan for a car. In that case, it is necessary to understand the loan sanction procedure, the applicable car loan interest rate, and the knowledge of any additional charges.
Terms and Conditions
To determine which bank is best for auto loan, there are a few things you need to keep in mind which are included in the terms and conditions of the lender. You can do this either online or by contacting them.
Credit Score
You should also ensure that your credit history is clean and your credit score is high. If you have any defaults or bankruptcy in your credit history, it will be difficult for banks to give you a loan.
Conclusion You should have a reasonable understanding of the features and advantages that different lenders provide on their Car loans based on the list above. You also need to check which bank offers the lowest car loan interest rate in India. Now that you have more information, you can decide which lender to use to finance the purchase of your ideal vehicle.
Which is the Best Bank for Car Loan? FAQs
Q1. Who is eligible for auto loan?
People who are at least 21 years old when they apply for a loan and under 65 when the loan term ends.
Q2. How can I obtain a low-cost auto loan?
You may be able to negotiate a lower car loan interest rate If you have a high credit score (above 750), choose a shorter payback period, make a higher down payment, and have a steady source of income.
Q3. What is the lowest amount of money needed to qualify for a car loan?
You must have a stable yearly income of 3 lakh to apply for a car loan.
