Car Loan Calculator: If you are thinking of buying a new car and want to take a loan, do not depend only on the dealership's offer. You can get a better deal by comparing rates across banks, loan aggregator websites and online portals. Let us know which bank is offering the cheapest loan of Rs 10 lakh for 5 years and how much will be the EMI.
According to the latest data from BankBazaar, the interest rates on new car loan of Rs 10 lakh (tenure of 5 years) in public and private banks range from 7.85% to 9.99%. However, the actual interest rate depends on the customer's credit profile, income and repayment history.
Interest rates and EMI of government banks
Punjab National Bank (PNB) – 7.85 percent interest, EMI Rs 20,205
Union Bank of India – 7.90 percent interest, EMI Rs 20,229
Bank of Baroda – 8.15 percent interest, EMI Rs 20,348
Canara Bank – 8.20 percent interest, EMI Rs 20,372
Interest rates and EMI of private banks
IDBI Bank – 7.95 percent interest, EMI Rs 20,252
ICICI Bank – 8.5 percent interest, EMI Rs 20,517
Axis Bank – 8.8 percent interest, EMI Rs 20,661
HDFC Bank – 9.40 percent interest, EMI Rs 20,953
IDFC First Bank – 9.99 percent interest, EMI Rs 21,242
Punjab National Bank is the cheapest option
If you want to take a car loan at low EMI, then government banks like Punjab National Bank (PNB) can prove to be a better option for you. In comparison to these, the interest rates in private banks are slightly higher. Punjab National Bank is the cheapest option, where new car loan interest rates start from 7.85%. The EMI for a car loan of Rs 10 lakh for 5 years is Rs 20,205.
Keep these things in mind
- If you have a good credit score, you can get a lower interest rate.
- It would be better to compare different banks instead of the car dealer's finance scheme.
- Before deciding EMI, keep your monthly budget and fixed expenses in mind.
- Don't depend on just one bank before taking a loan for a new car. There is a difference of up to 2 percent in interest rates, which can make a difference in your EMI for years.
