Car Interest Rates @8.65%
As per the current rates, Kotak Bank offers car loans at a lowest rate of 6.50 %. The rates at which you get a car loan depends on various factors such as loan amount, net monthly income, work experience, and CIBIL score. Typically banks charge a lower car loan rate for higher loan amount and for employees working with reputed organisations. Other banks which provide lowest car loan rates are OBC, PNB and Bank of Maharashtra.
Things to keep in mind when availing a used car loan
In India, buying used cars are very popular. Best Offer To Car Loan Interest Rates @8.65%, There are various finance options also available in case you wish to buy a pre-owned car. Most Non-Banking Financial Companies (NBFCs) and banks offer loans for pre-owned cars. However, various points must be considered before buying a used car on loan.
It is important that you compare the interest rates offered by various banks and NBFCs before selecting one. The loan tenure must also be chosen wisely. Even though the EMI amount will reduce for longer tenures, the interest rates would increase. The rate of interest for used car loans range between 8.8% and 17%. It is vital that you check the processing fees that are being levied as well. Few NBFCs and banks charge a high processing fee.
Income Tax Benefits on Car Loans Taken to Purchase Electric Vehicles
If you have taken a car loan to purchase an Electric Vehicle (EV), you can now enjoy a tax rebate of Rs.1.5 lakh on the interest paid. This was announced in the latest Union Budget (2019-20) by Finance Minister Nirmala Sitharaman and is a part of the government’s efforts to stimulate the adoption of environment-friendly mobility solutions. If you have purchased an electric vehicle, you will be able to avail a benefit of about Rs.2.5 lakh during the entire term of the loan. The government has also slashed the tax rates on electric vehicles to 5% from the earlier 12%.
Car loans are secured loans. Best Offer To Car Loan Interest Rates @8.65%, The loan is paid off in equal installments over a predetermined period of time. Generally, the vehicle you’re purchasing is used as collateral, which means the lender can seize the car if you default on loan repayments.
Car loans Full Details
Auto loans are secured loans that use the car you’re buying as collateral. You’re typically asked to pay a fixed interest rate and monthly payment for 24 to 84 months, at which point your car will be paid off. Many dealerships offer their own financing, but you can also find auto loans at national banks, local credit unions and online lenders.
Because auto loans are secured, they tend to come with lower interest rates than unsecured loan options like personal loans. Best Offer To Car Loan Interest Rates @8.65%, As of Dec. 22, 2021, the average APRs according to a Bankrate study are the following.
Who has the best rates for car loans?
The company that is able to offer you the lowest rates for an auto loan can vary depending on where you live, your credit score, your employment history and other factors. Your best bet is shopping around among at least three auto lenders until you find the best deal.
Is a 72-month car loan a bad idea?
One problem with longer car loans is the fact that you often wind up “underwater” on your loan for the first few years. This is due to the fact that cars tend to depreciate faster than you can pay off your loan.
A 72-month car loan means you’re paying off your loan more slowly and have the potential to owe more than your car is worth for the first few years. However, longer car loans let you secure a more affordable monthly payment, which is likely an important consideration for your budget.
What are used car loan interest rates?
Used car interest rates range from 3.68 percent to 19.85 percent for most borrowers, according to the most recent statistics from Experian. Rates for used cars tend to be higher than those offered for new car purchases.
What credit score do you need to get 0% financing on a car?
Super prime borrowers with credit scores above 781 are most likely to qualify for 0 percent APR offers that sometimes come with a new car. However, you may be able to qualify if you’re a prime borrower with a score between 661 and 780.
Experian. “Experian: State of the Automotive Finance Market Q2 2021,” Pages 3, 30, and 42. Accessed Oct. 20, 2021.
Listed below are some of the best car loan products you can opt for in 2021
Effective interest rate is 7.95%
Tenure is up to 84 months
Maximum loan amount is up to Rs.3 crore
100% financing of on-road price for select models
Designed for professionals and agriculturalists with no Income Proof
State Bank of India
Effective interest rate is 7.20% onwards
Tenure is up to 84 months
Up to 90% of the on-road price may be financed
Loan is provided for professionals and agriculturists
Effective interest rate starts from 7.45%
Tenure is up to 96 months
Up to 100% of the on-road price may be provided as a loan You can avail a loan of Rs.1 lakh
Effective interest rates start from 8.50%
Tenure is up to 84 months No income documents need to be provided Up to 100% of the ex-showroom price can be availed Low-Interest Rates for Used Cards and New Cars
Effective interest rate starts from 7.30%
Tenure is up to 84 months
Up to 90% of the on-road price may be provided
Lower interest rates are provided for women
Car Loan – Checklist to Follow While Applying for it
Apply for a car loan
Compare all offers available
To find the loan that offers you the highest loan amount and the most affordable interest rate
Submit Income Proof
Bank Statement (last 6 months) Pay-Slips (last 3 months) IT- Returns (last 2 years)
Lender wants to establish your ability to repay the loan
Submit Proof of Address and Identity
PAN Card, Voter’s ID, Aadhaar Card, Passport, etc.
Lender wants to establish your nationality, identity, and permanent address
Lender wants to check your past credit records and establish if you can be trusted to make regular repayments
Information About Vehicle
Sales Receipts from the showroom from where the vehicle was purchased
Lender must confirm that the deal was affected as intended
Proof of Insurance and Driving License
Copies of the vehicle’s Motor Insurance and your Driving License
Lender must establish that all laws and protocols are follow with regards to the purchased vehicle.
How to Calculate Car Loan EMI?
The Equated Monthly Installments (EMIs) that you will pay will depend on a few key factors.
The higher the loan amount, the higher your EMI will be. Similarly, the shorter the loan tenure the higher the EMI. To find the best compromise between an affordable EMI and duration you should check out our car loan EMI calculator.
When you take a new loan to pay off the outstanding balance on your existing car loan, it is know as car refinancing. You can choose to refinance your car loan if you wish to replace your current loan with better features such as low interest rates, extended repayment tenures, etc., or simply to change the terms of your current loan. The most common reason why people refinance their car loans is to save money.
When refinancing a car loan, you can avail a new loan that offers lower interest rates which, in turn, will save you money. You can also lower the equated monthly instalments (EMIs) by choosing a longer repayment tenure with a new lender through car refinancing.
Car refinancing is a good idea when there has been a drop in interest rates since you took the original car loan, your financial condition has improved, you are unable to bear the burden of high EMIs, and if you feel you did not get a good deal on your car loan the first time around.
However, refinancing on a car loan does not make sense when you have already made a substantial repayment of your original loan, your car value has depreciated, the prepayment penalties are high, and when you have plans to apply for new loans in the future as refinancing may impact your credit score negatively.
Car Loan Approval – Steps to Get the Loan Approved Faster
When you want to receive funds to purchase the new or used car that you have been eyeing for a while, it is better that you opt for a pre-approved loan. To avail such a loan, you can follow a few steps to quickly receive the required funds.
To create a better credit profile, you should always pay your bills on time. If that is not possible then you can make timely payment of your bills at least 6 months prior to the loan application. If you pay your bills on time, it assures the lender that you will also repay the Equated Monthly Installments (EMIs) on time. This, in turn, will help you secure a loan easily.
How to Get the Best Auto Loan Rates
There are a few different ways to save money and find the best auto loan rates. First of all, if saving money is your goal, you might look into purchasing a used or certified pre-owned car instead of a new one. A two- or three-year-old model will be significantly cheaper than a brand-new car. Even if your APR is 1 to 2% higher, you can still save money this way.
You can also do a few things to get a lower interest rate. For example, you can raise your credit score over a few months to a year if you work hard at it. Even 20 or 30 points can move you up a bracket and make a big difference in your auto loan options. You can also make a larger down payment to reduce your APR.
Best Auto Loan Rates
If your credit score isn’t quite as high as you’d like, you can also see if a family member with an excellent score can cosign on your loan. You can use their good credit to get the best auto loan rates. If you go this route, make sure you’ll be able to make your monthly payments, because if you don’t, both of your credit scores will take a hit.
Best Offer To Car Loan Interest Rates @8.65%.
On a related note, if you purchase an extend auto warranty through a dealership, the cost can often be roll into your monthly car payment. However, that will increase your loan amount and the total interest you pay. It can be a better idea to purchase a standalone vehicle service contract a bit later on if you want to save money and keep your car protected.
- Which Bank has the Best Auto Loan Rates?
At this time, Bank of America is the bank with the lowest car loan rates (starting at 2.39%). You can get competitive rates like this if you purchase a new car and have excellent credit. You may also be able to find a lower APR from other banks that do not advertise their best auto loan rates.
2. What is a Good Use Car Loan Rate?
Loan rates for used cars are higher than rates for new cars. For a 48-month term, a good used auto loan rate from a bank is 5.16% or lower. A good used car rate from a credit union is 3.16% or lower.
3. Top-Up Loan on Your Car Loan
If, after taking a car loan, you need quick or additional funds for purposes such as a wedding, home renovation, medical emergency, etc., you can get a top-up loan on your existing car loan. You can avail up to 150% of the car’s value as a top-up loan. Most lenders that offer a top-up on their car loans will require you to maintain a clear payment record for at least 9 months. The process to avail a top-up loan on your existing car loan is quick and requires minimal paperwork.
4. Compare Auto Loan Providers
As mentioned, one of the simplest ways to find the best auto loan rates is to shop around. Do this before you get in the room with a loan officer at a car dealership. You can get as many pre-approval offers as you want, as long as you make sure they only require a soft credit check. When you’re ready to go ahead with an offer, you can do a full loan application with the financial institution that gives you the best auto loan rates.
5. Car Loan Balance Transfer Rates
In case you are paying higher interest to your current lender, you can switch to another lender to pay your outstanding balance of car loan by availing of the car loan balance transfer facility starting at 6.50%. As per the current rates, Kotak Bank, OBC and PNB offer lowest rates for balance transfer.