Car Loan Interest Rates 2022

Many lenders offer car loans in India. Car loans in India have interest rates as low as 6.65% per annum. Depending on your credit score, you can get a car loan that covers 100% of the vehicle’s on-road cost.

Car Loan Interest Rate Comparison for All Banks

Name of the Bank Interest Rate (p.a.)
State Bank of India 7.20% onwards
Indian Overseas Bank 7.55% onwards
Jammu Kashmir Bank

RLLR + 0.75% onwards (floating)

RLLR + 1.50% onwards (fixed)

Canara Bank 7.30% onwards
HDFC Bank 7.95% onwards (Rack Interest)
Karur Vysya Bank 7.80% onwards
South Indian Bank Repo Rate + 5.10%
IDBI Bank 7.35% onwards (floating)
Yes Bank Contact the bank
Karnataka Bank 8.05% onwards
Federal Bank of India 8.50% onwards
Tamilnad Mercantile Bank 8.25% onwards
Punjab National Bank 6.65% onwards
Union Bank of India 7.40% onwards

Types of Car Loan Interest Rates – Fixed and Floating

Fixed or floating interest rates are available for car loan interest rates. Fixed interest rates are those that remain constant over the entire loan term. Market fluctuations and other factors do not impact fixed interest rates. A floating interest rate, on the other hand is a rate that can be modified in response to changes in the financial markets.

Below is a table that explains the differences between these rates.

Fixed interest rate Floating interest rate
Interest rate is higher Interest rate is lower
EMIs will remain constant EMIs will change according to MCLR changes
Comes with lower risk Comes with higher risk
Easy to prepare budgets with these rates Tough to maintain budgets as rates keep changing
Offers security to borrowers Offers savings to borrowers
Good for a short loan tenure (3 to 10 years) Good for a long loan tenure (20 to 30 years)

 

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