At 7.9 percent, public sector lender Central Bank of India charges the lowest interest rate in this category. The EMI will work out to Rs 15,536.
HDFC Bank, a private sector giant, offers the same interest rate – 7.9 percent – on a new car loan of Rs 10 lakh with a seven-year tenure.
The State Bank of India, India’s largest bank, levies an interest rate of 8.05 percent on such car loans. The EMI in this case will be Rs 15,611.
At 8.25 percent, ICICI Bank’s interest rate (as on October 18, 2022) on car loans of Rs 10 lakh with a repayment period of seven years figures among the top five cheapest offers. The borrower will have to pay an EMI of Rs 15,711 every month.
Bank of India charges 8.3 percent on such car loans, with the EMI amounting to Rs 15,736.
At 8.35 percent, Punjab National Bank’s (PNB) interest rate is marginally higher than that of Bank of India. The EMI on a PNB car loan will work out to Rs 15,761.
Punjab and Sind Bank features in the list of top 10 cheapest lenders with an interest rate of 8.4 percent. The borrower will have to pay an EMI of Rs 15,786 for a Rs 10-lakh car loan with a seven-year tenure.
Another private sector bank makes it to this list of cheapest car loans. This time, it is Axis Bank. This private-sector lender also offers an interest rate of 8.4 percent on car loans. The EMI will work out to Rs 15,786.
Next in the line is Bank of Baroda. This state-owned banking giant charges an interest rate of 8.45 percent. The EMI in this case will amount to Rs 15,811.
Rounding off the list of 10 cheapest car loans is Union Bank of India. This public sector bank, too, offers an interest rate of 8.45 percent on car loans of Rs 10 lakh with repayment tenures of seven years.
A note on the data: Interest rates on car loans offered by all listed (BSE) public and private banks have been considered for data compilation (excluding small finance banks and EV loans). Banks for which data is not available on their websites have not been considered. Bankbazaar.com has collected the data from respective banks’ websites as on October 21, 2022. Banks have been listed in ascending order on the basis of interest rate – that is, the bank offering the lowest interest rate on car loans is placed at the top and the highest at the bottom. The lowest interest rate offered by the banks irrespective of the loan amount is shown in the table. EMI is calculated on the basis of the interest rate mentioned in the table for Rs 10 lakh loan with a tenure of seven years (processing and other charges are assumed to be zero for EMI calculation). The interest mentioned in the table is indicative and may vary depending on the bank’s terms and conditions.
