Diwali-Dhanteras: Interest rates on car loans offered by banks in festive season

Diwali-Dhanteras Shopping: On festive occasions like Diwali and Dhanteras, it is an opportune time to contemplate purchasing a vehicle. The festive season around Navratri, Dhanteras and Diwali is a popular time to buy new cars, resulting in an increase in car launches during this exciting time of the year. Leading financial institutions often offer attractive vehicle financing offers with competitive interest rates to attract customers this festive season. Many institutions also improve the offering by eliminating prepayment penalties, offering refund incentives, and reducing documentation fees.

Analyzing interest rates and promotional packages offered by the main banks can help you get the most advantageous financial deal for the purchase of your vehicle. Additionally, certain car manufacturers may grant you the freedom to choose the bank of your choice for loan acquisition, thus increasing flexibility in your financing alternatives.

Car loans are obtained at attractive interest rates starting from 8.70% per annum. Depending on the lender, financing of up to 100% of the vehicle’s on-road price may be facilitated. Some lenders also offer the option of extending the repayment period by up to eight years. The car loan application process is simple and can be carried out both via digital platforms and conventional methods.

Credit score

The CIBIL score is a critical factor in the efficient car loan approval process, with a minimum score of 750 considered eligible. A higher credit score demonstrates responsible financial behavior and increases the likelihood of securing favorable loan terms, such as lower interest rates and higher loan amounts. Lenders evaluate your creditworthiness by looking at your credit score when you apply for any type of loan. This score reflects your past debt management practices and is calculated based on factors such as payment history, outstanding debts, length of credit history, and recent credit inquiries.

Car loans offered by major banks

Name of Bank Interest Rate (pa) EMI for Rs.1 lakh for 7 years

State Bank of India 9.05% onwards Rs.1,611 onwards

Indian Bank Overseas 8.85% onwards Rs.1,601 onwards

Jammu Kashmir Bank RLLR +0.75% per annum onwards (floating)
RLLR + 0.25% pa onwards (fixed)

Canara Bank 8.70% onwards Rs.1,594 onwards

HDFC Bank 9.40% onwards Rs.1,629 onwards

ICICI Bank 9.10% onwards Rs.1,614 onwards

Karur Vysya Bank 9.60% onwards Rs.1,640 onwards

Bank of South India 8.75% onwards Rs.1,596 onwards

IDBI Bank 8.85% (Floating) Rs 1,601 onwards
8.80% onwards (Fixed) Rs.1,599 onwards

Karnataka Bank 8.88% onwards Rs.1,611 onwards

Federal Bank of India 8.85% onwards Rs.1,601 onwards

Punjab National Bank Floating: 8.75% onwards Rs.1,596 onwards
Fixed: 9.75% onwards Rs.1,647 onwards
Union Bank of India 8.70% onwards Rs.1,594 onwards

Axis Bank 9.30% onwards Rs.1,624 onwards

Bank of Baroda Fixed: 8.95% onwards Rs.1,606 onwards
Floating: 9.40% onwards Rs.1,629 onwards
Bank of India 8.85% onwards Rs.1,601 onwards

Source: Bankbazaar.com