Diwali-Dhanteras: Car loan interest rates being offered by banks for festive season

Diwali-Dhanteras shopping: During festive occasions such as Diwali and Dhanteras, it presents an opportune moment to contemplate the purchase of a vehicle. The festive season around Navratri, Dhanteras, and Diwali is a popular time for purchasing new cars, resulting in a surge of upcoming car launches during this exciting time of year. Major financial institutions typically offer attractive deals on vehicle financing, with competitive interest rates to attract customers during this festive season. Many institutions also enhance the offer by eliminating prepayment penalties, providing cashback incentives, and reducing documentation fees.

Analysing the interest rates and promotional packages extended by the leading banks can assist you in clinching the most advantageous financial arrangement for your vehicle purchase. Furthermore, certain automobile manufacturers may grant you the liberty to opt for your preferred bank for loan acquisition, thereby amplifying the flexibility in your financing alternatives.

Car loans are procurable at appealing interest rates commencing from 8.70% p.a. Depending on the lender, financing up to 100% of the on-road price of the vehicle could be facilitated. Some lenders also provide the option of stretching the repayment period up to eight years. The application process for a car loan is straightforward and can be accomplished through both digital platforms and conventional methods.

Credit score

The CIBIL score is a critical factor in the efficient approval process for car loans, with a minimum score of 750 considered eligible. A higher credit score demonstrates responsible financial behavior and increases the likelihood of securing favorable loan terms, such as lower interest rates and higher loan amounts. Lenders assess your creditworthiness by examining your credit score when you apply for any type of loan. This score reflects your past debt management practices and is calculated based on factors like repayment history, outstanding debts, length of credit history, and recent credit inquiries.

Car loans offered by top banks

 

Name of the Bank                       Interest Rate (p.a.)                            EMI for Rs.1 lakh for 7 years

State Bank of India                     9.05% onwards                                 Rs.1,611 onwards

Indian Overseas Bank                8.85% onwards                                 Rs.1,601 onwards

Jammu Kashmir Bank                RLLR + 0.75% p.a. onwards (floating)                                                    RLLR + 0.25% p.a. onwards (fixed)  

Canara Bank                             8.70% onwards                                 Rs.1,594 onwards

HDFC Bank                               9.40% onwards                                 Rs.1,629 onwards

ICICI Bank                                9.10% onwards                                  Rs.1,614 onwards

Karur Vysya Bank                     9.60% onwards                                  Rs.1,640 onwards

South Indian Bank                    8.75% onwards                                  Rs.1,596 onwards

IDBI Bank                                8.85% (floating)                                   Rs 1,601 onwards                                                 8.80% onwards (fixed)                         Rs.1,599 onwards

Karnataka Bank                      8.88% onwards                                    Rs.1,611 onwards

Federal Bank of India             8.85% onwards                                     Rs.1,601 onwards

Punjab National Bank            Floating: 8.75% onwards                      Rs.1,596 onwards                                                Fixed: 9.75% onwards                          Rs.1,647 onwards Union Bank of India                8.70% onwards                                    Rs.1,594 onwards

Axis Bank                               9.30% onwards                                      Rs.1,624 onwards

Bank of Baroda                      Fixed: 8.95%  onwards                          Rs.1,606 onwards                                                Floating: 9.40% onwards                Rs.1,629 onwards Bank of India                          8.85% onwards                               Rs.1,601 onwards

Source: Bankbazaar.com