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Car loan interest rates: After a build-up of inventory, car sales swung into a fast lane peaking in October 2024. This could be the time to enquire about interest rates on car loans.
Passenger car sales in India has peaked in October making conditions favourable to explore the market for applying for a car loan from banks. (Picture Credit: depositphotos)
Passenger car sales have peaked in India in October 2024. Data from Vahan, the vehicle registration portal of the Centre, has revealed that as many as 478,450 cars were registered in October 2024, which is a record. This was a significant rise of 19.87% form the earlier record of 399,112 cars which was achieved in January 2024. On a year-on-year basis, October 2024 sales marked a 34% rise.
This scenario makes it clear that it could be a favourable time to explore whether you can book that favourite car of yours. The best, and most opted-for way, to buy a car is by taking an auto loan, or a car loan, from a bank. Let’s see what interest rates are being charged by top banks in India to finance car purchase.
Which bank is best for car loans
When it comes to car loans, most banks operate on a competitive range. However, one must remember that the interest rate is not the only criterion that one should examine. Most banks charge processing fees and some charge prepayment fees, which can be viewed as some sort of a penalty for paying off the loan earlier than the contracted period. Therefore, one must compare a few banks on all the charges.
State Bank of India, HDFC Bank car loan interest rates
State Bank of India, or SBI, is not only the largest bank in the country but also a major player in the retail loan category. SBI charges interest rates that range from 9.15% to 10.10%. Significantly, if you want to take a loan for electric cars, SBI’s interest rates range from 9.05% to 9.75%. The website of HDFC Bank reveals that it charged a minimum rate of 8.5% and a maximum rate of 14% on auto loans sanctioned between July 2024 and September 2024. The average rate was 9.32%.
ICICI Bank, Axis Bank car loan interest rates
The second biggest private sector lender in India, ICICI Bank, states that it charges interest rates starting from 10.20% for repayment tenure between 12 and 35 months. For repayment period of 36-84 months, the interest rate charged is 9.10%. The interest rate charge by Axis Bank is between 9.05% and 9.75%.
PNB, Bank of India car loan interest rates
Punjab National Bank, or PNB, is the second largest PSU bank of India. The interest rate it charges on car loans start from a minimum of 8.80%. The maximum rate is 10.60%. Bank of India charges interest rates that begin from a minimum of 8.85%. Bank of India says that ROI is calculated on a daily reducing balance.
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