Top 10 Banks for Car Loans in India

1. State Bank of India Car Loan

Features:

1. The interest rates on SBI Bank Car Loan are one of the lowest in the market and are calculated on daily reducing balance.
2. SBI offers car loans under 4 categories namely, SBI New Car Loan Scheme, SBI Loyalty Car Loan Scheme, SBI Assured Car Loan Scheme, and SBI Green Car Loan.
3. Financing of up to 90% of the car’s on-road price can be availed which will include registration, cost of accessories, insurance, extended warranty, annual maintenance contract, etc.
4. An optional life insurance cover is offered by SBI to its borrowers.

2. Bank of Baroda Car Loan

Features:

1. Can apply to purchase passenger cars, SUVs, and MUVs for private use.
2. Offers the benefit of lower interest rates to individuals with a high credit score.
3. The interest rates on Bank of Baroda car loan are computed on daily reducing balance
4. The bank does not charge any penalty on pre-closure of car loans.

3. Union Bank of India Car Loan

Features:

1. Apply for new or old cars (up to 3 years) with this car loan scheme.
2. Companies/firms can apply for this loan for use by their employees.
3. The Union Bank of India car loan borrower should meet the margin requirements of 10% of the vehicle’s on-road price.
4. No prepayment penalties on closing loan early with own funds.

4. HDFC Bank Car Loan

Features:

1. The car loans offered by HDFC Bank are custom-fit to meet the requirements of the borrowers.
2. Comes with flexible repayment options in the form of step-up EMI and balloon EMI.
3. Existing car loan borrowers can avail top-up loans without any documentation.

5. Federal Bank Car Loan

Features:

1. No penalty charged for foreclosure of the car loan.
2. Personal accident insurance is offered free of cost with the Federal Bank car loan up to Rs.10 lakh.
3. Up to 100% of the vehicle’s ex-showroom price can be availed.
4. Borrowers can get a reimbursement within 1 month from the day the vehicle was purchased.

6. Axis Bank Car Loan

Features:

1. Priority banking, Privee Banking, and Wealth Banking customers of Axis Bank can enjoy special benefits on car loans.
2. Individuals and non-individuals can apply for this loan.
3. Income documents and bank statements waiver for pre-approved customers and salary account customers of the bank.

7. Canara Bank Car Loan

Features:

1. Known as Canara Vehicle, the car loan can be used to purchase new or old 4-wheelers.
2. Up to 90% of the total value of the car can be availed as a car loan from Canara Bank and this is inclusive of registration charges, invoice value, insurance premium, life tax, etc.
3. To buy a new car costing up to Rs.10 lakh, above Rs.10 lakh and up to Rs.25 lakh, and above Rs.25 lakh, you will need to pay 10%, 15%, and 20% of the loan amount respectively.
4. The Canara Bank car loan can be availed by all individuals, professionals, firms, etc., except for Hindu Undivided Families (HUFs).

8. IDBI Bank Car Loan

Features:

1. The IDBI Bank car loan can be used to buy from a huge range of cars and SUVs.
2. The bank has tie-ups with car dealers and manufacturers to ensure the best deals to borrowers.
3. The EMIs can be paid through standing instructions or ECS.
4. Part payment/foreclosure allowed after 6 months of loan tenure. No penalty if prepaid using own funds.

9. Punjab National Bank Car Loan

Features:

1. The bank has partnered with leading car manufacturers such as Tata Motors, Honda Cars India, Maruti Suzuki India, Mahindra & Mahindra, and Force Motors Ltd., to offer best deals on car loans.
2. Individuals and businesses can apply for this car loan for private use.
3. The bank offers both fixed and floating interest rates on the car loan.
4. A collateral security or third-party guarantee must be provided to avail a Punjab National Bank car loan but based on an individual’s merit, this condition can be waived off.
5. For the benefit of government employees, Punjab National Bank offers car loan under the name ‘PNB Pride Car Loan’.

10. Karnataka Bank XPress Car Loan

Features:

1. Individuals and agriculurists who own agricultural properties can avail the loan.
2. Non-Resident Indians (NRIs) can avail the Karnataka Bank XPress Car loan.
3. Up to 85% of the on-road price of the car may be provided as a loan.
4. Loans are provided for used cars as well as for new cars.

The above list should have given you a fair idea about the benefits and features offered by various lenders on their car loans. You can now go ahead and make an informed decision on which lender you should pick to fund the purchase of your dream car.

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