Check which lenders offer best interest rates on new car loans


MUMBAI: While purchasing a new car, the dealer is likely to ask if you need a loan. In case you do, they will direct you to a loan desk where different lenders offer loans.

Most buyers end up taking a car loan from a lender which has partnered with the dealer as it’s convenient that all services are available under one roof. However, before you sign up for the loan with the lender who has partnered with the dealer, check if you can get a cheaper rate elsewhere.

Even a 1% difference in the interest rate can help you save. Suppose you want a 7 lakh loan, the dealer offers it at 8% for five years. Your equated monthly instalment (EMI) will work out to be 14,194 and the total outgo will be 8,51,609.


If your loan is 0.5% cheaper, your EMI will be 14,027 and the total loan outgo will be 8,41,594.

If the loan is 1% cheaper, the EMI and total loan outgo will be 13,861 and 8,31,650, respectively.

Other than interest rates, the processing fee added to the total outgo can make a more significant difference.


View Full Image


Public sector banks (PSBs) are generally cheaper than private-sector lenders in several loan categories. At present, the lowest interest rate offered by Bank of Baroda offers is 7%, Union Bank of India at 7.15%, Canara Bank at 7.3%, according to data from The lowest rate that State Bank of India offers is 7.5%.


In private banks, ICICI Bank and HDFC Bank offer 7.9% and 7.95%, respectively, as their lowest rates.

Some of the banks that offer lower processing fees include Union Bank of India ( 1,000), IDBI Bank ( 2,500), and Federal Bank ( 1,500 – 2,500).

Hence, when you evaluate loan offers, consider interest rates along with other charges.


Subscribe to Mint Newsletters

* Enter a valid email


* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
our App Now!!


Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 


 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More