10 Best Car Loans in India

Now you want to buy a car but it’s far too expensive to purchase to it right away. So the best option would be to go for a car loan that gives you some of the most reliable options. Before finalizing on your payments it’s important to get a clear idea about the terms and conditions of the loan. Make a proper comparison of the offers of the banks in terms of interest rates, tenure and additional expenses. This is important otherwise you would be incurring a huge expense which needn’t have to be made. (Also Read > Best Car Loan Rates in India)

Things to look out before you opt a car loan

Interest: Car loan borrowers can opt for either fixed or floating rate. In fixed you would be paying a fixed EMI every month and this would a safer option. The floating rate varies according to the state of the economy. So unless and until you are sure that the interest rate will fall in future then you can opt flexible. Tenure: Most banks offer 1 to 5 years as car loan tenure. The longer the tenure the lower would be your EMI but it would also mean a higher interest rate in totality. Credit Score: Banks always look into your credit history before sanctioning loans. So a person with a bad credit history might find it difficult to get a car loan. Down payment: Most of finance companies offer loans up to 90% of car value. In some exceptional cases and models there is 100% financing but this is not very common. Read More : 10 Things To Know Before Taking A Car Loan and also How To Get Best Car Loan Interest Rates

Best Car Loans in India

Here are some of the best car loans that you can opt for your financing needs.

1. ICICI Bank

ICICI Bank has numerous financial products and services to corporate and retail customers. They have flexible schemes and their interest rates are one of the best in the market. The bank offers car loans with its fixed interest rates. This means that the rate will not change during the tenure of the car loan. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• Car loan is available to both salaried as well self-employed professionals.
• You can check your eligibility on the website from the eligibility calculator.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• Get car loans up to 100% for the ex-showroom price of the car.
• You can avail loans up to a maximum of 7 years.
• Existing ICICI bank customers have the advantage of reduced documentation.

[mks_toggle title="ICICI Bank Loan Features" state="open"] Processing Fee - Rs. 2,500 - Rs.5,000 Interest - 10.75%-12.75% Late Payment Fee - 2% per month on the outstanding installment. Documentation Charges - Rs 250 [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks

• The processing charge is high. Bank of India charges only Rs 500 per application irrespective of the loan.
• The bank also charges for documentation whereas Allahabad and IDBI banks don’t charge.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary ICICI Bank is one of the best banks to opt for your ca loans. If you have good credit history and you meet their eligibility criteria you will have no difficulty in getting the loan. The interest rate offered is not very high and will be charged depending on the tenure of the loan. Even though the other charges are high you can benefit from availing loans up to 100% of value of the car and maximum tenure of the loan.

2. SBI Bank

The SBI Car loan offers attractive loan schemes to its customers. They also have special offers for women too. Some of their schemes include SBI New Car Loan Scheme, SBI Loyalty Car Loan Scheme (for its existing home finance borrowers), SBI Nano Youth Car Loan Scheme for purchase of TATA Nano car, etc. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• The car loan can be availed by individuals between the ages of 21-65 years.
• It is available to salaried people with a minimum of annual income of Rs 2,50,000 and self-employed professionals with a minimum annual income of 4 Lakhs.
• They must also submit Income proof, Identity proof and address proof.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• Avail a maximum loan of about 85% of the ex-showroom price.
• The total finance includes Registration, Insurance and Extended Warranty/ Total Service Package/ Annual Maintenance Contract/ Cost of Accessories.
• The loan gives a long prepayment tenure of 7 years.
• The existing customers of SBI can get their car loan applications approved at a lower rate of interest.

[mks_toggle title="SBI Bank Loan Features" state="open"] Processing Fee -0.51% of the loan amount subject to Minimum of Rs.1020/- and maximum of Rs. 10200/- Interest -For Women - 9.60% For Men - 9.65% Late Payment Fee - 2% of overdue amount per month if delayed more than 30 days. Documentation Charges - Nil [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks The banks offers 85% of the ex-showroom price whereas ICICI bank gives loans up to 100% for ex-showroom price of the car. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary SBI caters to the largest segment of Indian banking sector and is one of the most popular banks in India. Its charges are pretty reasonable and this makes it one of the major reasons for opting this bank over others. They have separate rates for men and women which encourages women also to own their vehicles.

3. Axis Bank

Axis bank car loan offers some of the best and cost effective car loans for its esteemed customers. You have to meet the eligibility criteria for the sanction of the loans and have good credit history. You have options to go for flexible interest which helps you avail the best rate in the market. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• The minimum age criteria for salaried professionals is 21-70 years and self-employed 18-75 years of age.
• Minimum salary requirement for salaried persons is 240000 per annum and self-employed is 180000 per annum.
• In case of self-employed professionals the age criteria is 18-75 and the minimum annual income would be 2 lakhs.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• Avail up to 85% of funding for the ex-showroom price of the car.
• Get a maximum tenure period of up to 7 years for the loan.

[mks_toggle title="AXIS Bank Loan Features" state="open"] Processing Fee -Rs. 3,500 to Rs. 5,500 Interest -11.00% - 12.00% Late Payment Fee - 22% per month on the outstanding installment. Documentation Charges - Rs 300 [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks Flexible interest rate is good but there is always a chance for the interest to go higher. So there is a risk associated with it so fixed would be safer one to opt.

• The processing charge is high. Bank of India charges only Rs 500 per application irrespective of the loan.
• Interest rates are form 11% to 12% which is slightly higher as compared to SBI which starts form 9.65%

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary The Axis Bank gives 95% car loan on the price of the showroom sanctioned car. This is quite a good deal and you can get a maximum tenure of loan up to 7 years. Existing customers of the bank will also be eligible for the additional benefits of the bank. Once you meet the eligibility criteria you can be assured of the loan for your vehicle.

4. IDBI Bank

IDBI offers quick and express loans for its customers. It is one among the 26 banks which are directly run by the Government of India. They are easy to avail and you can be assured of getting your vehicle with as little steps as possible. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• The applicant minimum age is 18 and the maximum is 70 with an annual income of Rs 180000 in case of salaried professionals as well self-employed.
• They have to submit all the Identity proof, Income proof and Address proof.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• The auto loan covers cars, SUV and high end bikes.
• The bank offers flexible tenure system for loans up to a period of 7 years.
• It offers low processing fees on car loans.
• Pre-payment or part foreclosure of an IDBI car loan is allowed after a period of six months of the loan disbursement.
• They also have tie up with auto dealer which enables them to give attractive discounts to its customers.

[mks_toggle title="IDBI Bank Loan Features" state="open"] Processing Fee - Nil Interest - 19.95% Late Payment Fee - 2% of overdue amount per month if delayed more than 30 days. Documentation Charges - Nil [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary IDBI bank has no processing and documentation charges which makes it one of the best option for getting your car loan. They have special tie ups with auto dealer which enable you to get best deal. Their eligibility criteria is also not so strict making it easy for all to avail car loan easily.

5. Allahabad Bank

Allahabad Bank offers some of the best car finances as possible considering the different products available. Its interest rates is the best you can find and the hassle free availability makes it easy to access the loan too. The car loan is available for a car, JEEP, Multi Utility Vehicles (MUVs) and van. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• For salaried people the minimum income is Rs 25000 per month, retired professionals Rs 15000 per month of pension
• For self-employed professionals it would require full collateral security with an IT assessment order.
• They should between the ages of 18-60 years of age.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• The bank offers hassle free loans and flexible EMI deals.
• You can avail a loan of a maximum of 3 times of Net Annual Income / Net Annual Salary.
• There is no restriction in the maximum number of cars that can be financed through the Individuals, Partnership Firms and Companies.
• The margin of the loan of new cars is 15% of the cost of vehicle on Road.

[mks_toggle title="Allahabad Bank Loan Features" state="open"] Processing Fee - 0.50% of loan amount. Maximum Rs.5750 Interest - 10.30%-12.25% Late Payment Fee - 2% of overdue amount if delayed more than 30 days. Documentation Charges - Nil [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks The processing fee is 0.50% of loan amount or a maximum Rs.5750 which is high. Bank of India has only Rs 500 as its processing charge. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary Allahabad Bank offers car loan options for its salaried, self-employed and even retired professionals. If your credit history is good you can easily avail the loan without any difficulty. You can maximum tenure of up to 7 years and there is no restriction on the number of cars that can be financed by an individual.

6. Oriental Bank of Commerce

The bank offers finance for the purpose of purchasing car, SUV, four wheelers and two wheelers. You can avail a maximum loan for up to 50 lakhs for your vehicles. Your finance will constitute the show room price, one time road tax, registration Charges & first year's insurance cost. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• The applicant must be earning a minimum salary of Rs 20000 per month.
• They must have at least worked for 1 year in the current organization or experience of the previous employer will have to be considered.
• For business personals they should be running and establishment for at least 2 years.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• There is no pre closure fee.
• They offer flexible tenures with a maximum of 84 months.
• The customers of oriental bank also get concessions on the interest rates.

[mks_toggle title="Oriental Bank of Commerce Loan Features" state="open"] Processing Fee -0.50% of loan amount with a minimum of Rs.500. +Service tax, if any. Interest - 10.2%-12.75% Late Payment Fee - 2% per month on the outstanding installment. Documentation Charges - Nil [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks Processing fee is nominal but some banks like IDBI don’t have processing charges. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary Oriental Bank of Commerce offers great deals with car loans. They have a flexible tenure of up to 84 months. They have charges for processing but unlike ICICI Bank it is much lesser. Their eligibility criteria is not very strict but if the applicant matches to the criteria they can easily avail the loan.

7. HDFC Bank

HDFC Bank offers you an easy and hassle free loan processing that is easy to avail. The bank offers you 100%loan of the value of the car. They offer one of the best deals and makes it possible to own a car with a lowest down payment possible. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• For salaried professionals they must earn an income of Rs 180000 with an age criteria of 21-60 years.
• They must have a minimum job experience of 2 years or 1 year experience with the current employer.
• They must also furnish identity, address and income proof.
• For self-employed persons they must have annual income of Rs 60000 and be of the age group of 21-65 years.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• You can be assured of 100% finance for your vehicles.
• Avail stability in your EMI payments as it will not be affected by the fluctuating market rates.
• You get flexible tenue up to 7 years.
• You can check you eligibility in your car loan eligibility calculator and get it approved within 30 days.

[mks_toggle title="HDFC Bank Loan Features" state="open"] Processing Fee - 0.4% of Loan Amount or Rs.10000, whichever is lower Interest -11.50% to 13.75% Late Payment Fee - 2% per month on the outstanding installment. Documentation Charges - Rs 600 [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks

• The processing fee is high. Bank of India charges only Rs 500 as their processing fee.
• The documentation charge of Rs 600.Bank of India does not have any charge.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary HDFC has a huge customer base and is one of best banks in India. They offer 100% finance for your vehicles while bank like SBI offer only 85% of the ex-showroom price. If you meet the eligibility criteria you will definitely get your car loan sanctioned without much hassle.

8. Federal Bank

Federal Bank is offering one of the best car loans for its esteemed customers. You can be assured of a speedy processing of loans and some of the best interest rates. The repayment period is also long and charges are quite transparent. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• The applicant must be an Indian resident
• They must be between the ages of 18-60 years.
• To avail the loan the applicant must also get a salary of Rs 16000 per month.
• They must also furnish identity, address and income proof.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• Federal Bank offers best EMI’s with the lowest interest possible.
• Avail repayment tenure of up to 7 years.
• You can be assured of a hassle free, transparent and fast loan application, processing and disbursement cycles.
• Limited documentation and easy terms and conditions.

[mks_toggle title="Federal Bank Loan Features" state="open"] Processing Fee -Rs 1,500 - Rs 2,500 Interest - 10.30% to 12.25% Late Payment Fee - 2% of overdue amount per month if delayed more than 30 days. Documentation Charges - Nil [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks The processing fee is high. Bank of India charges Rs 500 irrespective of the loan amount. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary Federal Bank has a good scheme with respect to car loans. Interest is also as per the rate in the market. The processing fee is high but it will vary depending on the loan amount. The eligibility criteria is not so strict and makes it possible for all to avail the loan.

9. Bank of India

Bank of India offers car loan under the name of BOI Star Vehicle Loan Scheme. It has some of the best interest rates and a flexible tenure system. It is easy to avail and is available to all sections including salaried and self-employed people. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• The applicant must be an Indian and a Non Resident Indian they must have an advance granted jointly with a Resident Indian.
• Should be between the ages of 21-65 years of age.
• They must also furnish identity, address and income proof.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• The maximum loans for vehicles will be of Rs.50 lacs and for imported vehicles it will be a maximum of Rs.100 lacs.
• No processing charges for senior citizens retired employees of the bank and pensioners drawing pension from this bank.
• Companies and corporate entities are entitled to a maximum of Rs.200 lacs
• For NRI the maximum is 50 lacs.

[mks_toggle title="Bank of India Loan Features" state="open"] Processing Fee - Rs.500/- per application, irrespective of limit. Interest - 9.35% Late Payment Fee - 2% of overdue amount per month if delayed more than 30 days. Documentation Charges - Nil [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawbacks BOI charges only Rs 500 as processing fees but banks like IDBI has no processing fee at all. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary Bank of India has been prominent bank in offering its financial services to its customers. Credit history is very important while considering the sanctioning of loans. The interest rate of this bank is also very reasonable with a flexible tenure system. The maximum loan that can be availed is 50 lakhs which is quite a good amount. Even corporates and companies can also avail it with a maximum of 200 lakhs.

10. YES Bank

YES Bank is a private bank in India that offers many loan products like home loan, personal loan, commercial vehicle loan and many more. They have some of the best interest rates and multiple repayment options with a maximum tenure availability of 7 years. Their loans also offer 90% of coverage deals and is quite competitive with its interest rates. [mks_icon icon="fa-star" color="#dd3333" type="fa"] Eligibility

• Salaried professionals between the ages of 21-58 years of age. They should have minimum annual income of 3 lakh.
• For self-employed professionals the ages between 21-65 years. Their annual income should be a minimum of 2 lakhs.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Benefits

• The loan is available to all the segments including individuals, proprietorship firms, partnership firms and public or private limited companies.
• The bank gives you a coverage of up to 90% on the vehicle cost.
• It has some of best deals with interest rates and maximum tenure period.

[mks_toggle title="YES Bank Loan Features" state="open"] Processing Fee - Rs 5000-Rs 7500/- Interest - 10.25% - 12.25% Late Payment Fee - 2% of overdue amount per month if delayed more than 30 days. Documentation Charges - Nil [/mks_toggle] [mks_icon icon="fa-star" color="#dd3333" type="fa"] Drawback

• The processing fee is very high at Rs 5000. IDBI does not charge for processing and even BOI has a very nominal fee of Rs 500.
• Only 90% of the vehicle cost will be covered in this scheme. ICICI Bank offers 100% coverage for the ex-showroom price of the car.

[mks_icon icon="fa-star" color="#dd3333" type="fa"] Summary YES bank is one among the recent banks to have flourished and have made a good image. Their loans schemes are good and charge a decent interest rates.  You can get a maximum tenure of up to 7 years. Even though the processing fee is high they have zero charges for documentation. Even for eligibility you need a good credit history which makes it easier to avail the loans.