Best Banks For Car Loans in 2022: So, you have decided that you are going to get a car home but don’t want to spend all your savings? In such scenarios, taking car loans can be a great idea. But do you know that every bank has its own terms and conditions for car loans?
5 Best Banks for Car Loans (Buy Your New Vehicle)
In this article, we will share a list of the five best banks that you can look forward to if you are planning to take a car loan. So, without any further ado, let’s get started:
#1. State Bank of India
The first bank on our list for car loans is none other than the State Bank of India, and for a good reason. The interest rates for car loans on SBI are the lowest in the market. SBI offers four different schemes for car loans named as SBI New Car Loan Scheme, SBI Loyalty Car Loan Scheme, SBI Assured Car Loan Scheme, and SBI Car Loan Lite Scheme.
Each of these loan schemes has its eligibility criteria and conditions. For example, SBI New Car Loan Scheme allows you to take a loan of 48 times your net monthly income. With this scheme, you can get a loan for up to seven years of tenure. The good thing is that up to 85% of the car’s on-road price will be availed through this scheme.
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#2. Punjab National Bank
Next, we have PNB on our list. Punjab National Bank is an excellent bank for car loans, and that is because PNB has partnered with many leading car manufacturers, including Honda Cars India, Tata Motors, Mahindra & Mahindra, Force Motors, etc. This allows you to get the best deal when you buy cars made by any of these manufacturers.
The minimum eligibility criteria to get a car loan from PNB is that your monthly income should be at least Rs. 20,000, and your age must be between 18 to 70 years. Though you need to provide some collateral security or third-party guarantee, this condition can be waived off if your loan amount is not massive or if you have good merits. Almost 85% of the car’s on-road price can be sanctioned through PNB’s car loan scheme.
#3. Bank of Baroda
Bank of Baroda is another great bank for car loans. BoB offers car loans to purchase SUVs, MUVs, passenger cars, and more. The best thing about the Bank of Baroda Car Loan Scheme is its lower interest fee, and the interest fee further varies from credit score to credit score. The eligibility criteria are simple – you need to be above 21 years of age with a credit score of 725 or above.
The base rate for interest starts at 7.25% to up to 11%, depending on the applicant’s credit score. The maximum you can get for a car loan is up to Rs. 1 crore for a tenure of 7 years. The good thing here is that up to 90% of the car’s on-road price can be financed. So if you have a good credit score, I highly recommend trying Bank of Baroda for your car loan.
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#4. HDFC Bank
Are you planning to buy a super sexy, luxurious car? If yes, an HDFC Bank car loan can be an excellent choice for you because HDFC Bank allows you to finance up to Rs. 3 crore loans for buying cars.
Bank Offer: Up to 100% Finance on new cars.
Obviously, you cannot directly go to the HDFC branch and get your supercar financed. Your profile needs to meet specific eligibility criteria to get such a big loan.
Another notable feature of the HDFC Bank car loan is that it offers up to 100%ex-showroom price finance options. The basic interest rate for the car loan is 7.95% annual, which can go up to 11%, depending on several factors. The good thing is that the entire process is relatively fast and requires minimal paperwork.
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#5. Axis Bank
Lastly, we have Axis Bank. Axis Bank is an excellent bank for car loans, and the best thing about it is that there is no higher amount limit for car loans. So, whether you want to buy a car worth Rs. 5 lakhs or 5 crores, Axis Bank can be a good choice for you.
Moreover, axis Bank can help you finance up to 100% of the vehicle’s on-road price, which is a great thing.
Axis Bank Link: Click Here.
However, the biggest problem with Axis Bank is the interest rates. Interest rates for car loans by Axis Bank are amongst the highest. The interest rates start at 9.5% per annum and can go up to 15% per annum, depending on various factors. However, taking car loans by Axis Bank is quite easier and faster than other banks.