Diwali Car Loans: Many people are planning to buy cars this week before Diwali. The prices of cars, especially those with engines up to 1,500 cc, have dropped a lot. Many buyers can also take loans to book cars before the festival. Salaried people have extra cash now because of income tax relief that started in April this year, which makes buying easier.
The good news for customers is that all car companies are passing the GST benefits directly to buyers. Big brands like Suzuki, K&K, Hyundai, and Tata Motors have confirmed that customers will get the full price cuts.
Data from Paisabazaar.com shows that car loan interest rates start from as low as 7.60% and go up to more than 14%. For example, if someone takes a Rs 5 lakh loan and wants to repay it in five years, the EMI could be as low as Rs 10,043 per month.
Some banks, like Union Bank of India and Bank of Maharashtra, are even waiving processing fees for loans during the festival season.
Car loan interest (PSU banks)
Union Bank of India: 7.80-9.70%
Punjab National Bank: 7.85-9.70%
Bank of Baroda: 8.15-11.60%
Canara Bank: 7.70-11.70%
Bank of India: 7.85-12.15%
UCO Bank: 7.60-10.25%
SBI: 8.80-9.90%
Indian Bank: 7.75-9.85%
IDBI Bank: 8.30-9.15%
Indian Overseas Bank: 7.80-12.00%
Bank of Maharashtra: 7.70-12.00%
Car loan interest (Pvt sector banks)
ICICI Bank: 8.50% onwards
HDFC Bank: 9.20% onwards
IDFC FIRST Bank: 9.99% onwards
Federal Bank: 10.00% onwards
It is important to know that the interest rate a bank gives depends on many things, like your credit score, past loan repayment history, income, other financial commitments, and overall credit behaviour. This means the interest you actually pay could be a bit higher than the lowest rate shown on a bank’s website.
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Experts suggest talking to a few banks before deciding on one. It is usually best to start with the bank where you already have your savings or salary account. This can make the process easier and faster.
