Cheapest Car Loan: Due to Corona, keeping in mind the social distancing, most of the people are giving priority to commuting somewhere by their own vehicle. In such a situation, the trend of people regarding their car has increased. Many banks finance 100 percent of the cost of the car if people are unable to arrange money to make their car dreams come true. Almost every bank in the country provides car loans, however, if we talk about car loans at the cheapest rates, then a car loan can be taken from Canara Bank at the rate of 7.3 percent. Talking about the country’s largest bank SBI, SBI is offering car loans at the rate of 7.5 percent on applying through YONO app and is also not charging any processing fee.
SBI Bank
- State Bank of India (SBI) is providing car loan at cheapest rates.
- Applying for a car loan through the YONO app can give you a loan at the rate of 7.5 per cent and no processing fee.
- If you do not apply through YONO app, you get a loan at the rate of 7.75-8.45 per cent per annum and processing fee of 0.4 per cent (exclusive of GST) of the loan amount, minimum 1 thousand and maximum 7500 rupees, GST extra.
- SBI provides finance up to 90% on on road price and the interest is calculated on the decreasing balance every day.
- There is a repayment period of up to 7 years.
Bank Of Baroda
- Like SBI, Bank of Baroda also finances 90% of the car’s on-road
- The existing home loan borrowers of Bank of Baroda who have a good credit history, the bank is also offering a discount of 0.25 percent on the interest rate of the car loan.
- The maximum loan tenure is 7 years.
- Interest is calculated on the decreasing balance every day.
- Car loan has a processing fee of 0.5%. However, there is a maximum processing fee of 10 thousand.
- Car loan interest rates range from 7.25 per cent to 10.1 per cent per annum.
- Maximum loan amount: Rs 1 crore.
Canara Bank
- Canara Bank finances up to 90% for Central/State/Government/Autonomous Bodies/PSU employees for cars up to Rs.25 lakh and up to 80% for cars costing above Rs. Provides 90 percent finance for other employees for a car up to 10 lakhs, 85 percent for a car of 10-25 lakhs and 80 percent for a car above 25 lakhs.
- Interest rate: 7.3 percent to 9.9 percent.
- Repayment Tenure: 84 Months.
- Processing fee: 0.25% of the loan amount, minimum Rs 1 thousand and maximum Rs 5 thousand.
HDFC Bank
- HDFC Bank provides 100% financing on certain vehicles.
- Flexible repayment tenure from 12 months to 84 months.
- Maximum loan amount: Rs 3 crore.
- Processing fee of minimum 1% of the loan amount, minimum 5 thousand rupees and maximum 10 thousand rupees.
- Interest rate: 8.8-10 percent.
ICICI Bank
- 100% financing of the car’s on road price.
- Processing fee of Rs.3500-8500. Depends on the car segment.
- ICICI Bank offers car loans at the rate of 9.85 per cent per annum for 12-35 months and 7.9-8.80 per cent per annum for tenures of 36-84 months.
Documents required for car loan application
- Bank account statement for the last six months
- 2 passport size photographs
- Identity Proof (Passport, PAN Card, Voter IT Card or Driving License etc.)
- Address Proof (Ration Card, Driving License, Passport, Telephone Bill, Electricity Bill or Life Insurance Policy etc.)
- Income Certificate Salary Slip Form 16
- IT Returns or Form 16 for the last two years
- Audited Balance Sheet in case of Non-Salaried/Professional/Business, Profit and Loss statement for two years, Shop and Establishment Certificate/Sales Tax Certificate/SSI Registered Certificate/Copy of Partnership
- Khasra/Chitta (with cropping pattern given)- Patta/Khatauni (land holding given) with photograph in case of people engaged in agriculture or allied activities. All the land should be on free hold basis and the ownership proof should be in the name of the borrower.
(Note: All the information has been taken from the website of the concerned bank. In the given list of required documents, some of the banks ask for such as address proof, identity proof, income certificate.)