Buying your dream vehicle? Check car loan interest rates

If you are thinking of buying your dream car but running short of funds, you need not worry as there is a wide range of car financing options available in the market at minimum 8.60% p.a. rate of for the repayment period of up to 7 years. Although owning a car or vehicle of your choice in India is still considered luxury, the Car Loans facility provided by private and public banks have broken that notion. Now, almost all private/public sector lenders in the country provide car loan facility with customer friendly terms and conditions. You just need to meet very simple criteria that includes a list of identity, income and credit history qualifications. 

Some of the best car loan products provided by banks including HDFC Bank, ICICI Bank, Axis Bank and SBI are given here.

1. Among private banks, HDFC Bank Car Loan facility at a fixed rate of interest between 10.10% and 11.35% pa is very popular. You need to pay one time processing fee op to Rs 5,310 for the tenure 1-7 years. The bank facilitates you with no guarantor along with part payment option.

The documents need are KYC-PAN, address and ID proof, income proof, bank statement and one photograph. Notably, fee and charges waiver is applicable subject to completion of 50% of tenure or 36 months whichever is higher. AFter meeting these terms and conditions, you can avail can loan upto 100% of ex-showroom price.

2. ICICI Bank Car loan facility is provided at fixed rate of interest of 8.95% to 13.40% pa with one time processing fee up to Rs 5,000 for the tenure 1-7 years. You need no guarantor, but documents required include your KYC-PAN, address and ID proof, income proof, bank statement and one photograph. You can avail loan upto 100% of ex-showroom price. 

The ICICI Bank, however, expects you to be in the age group of 23 to 70 years. The ICICI car loans can be procured by salaried individuals, self-employed professionals and non- professionals.

3. Axis Bank Car Loan is also extended at fixed rate of interest at 9.15% - 11.50% pm with a processing fee of upto Rs 5,500 for the tenure of 1-7 years. The bank needs no guarantor, but you should have documents including KYC-PAN, address and ID proof, Income proof, bank statement and one photograph. You can avail the car loan to value ratio upto 95% of ex-showroom price. 

The bank also demands eligibility criteria of you being at least 21 years and maximum age of 75 for the salaried individuals; self-employed should be in the age group of 18 to 75 years. To meet income eligibility parameters, you should have a minimum net annual salary of Rs 2.4 Lakh p.a, while self-employed applicants need to have a minimum of Rs 1.8 Lakh p.a as net annual business income for selected car models and Rs 2 Lakh p.a. for others.

4. State Bank of India Car Loan facility is offered at 9.25% - 9.30%  pa floating rate of interest with no processing fee for the tenure of 1 to 7 years. The bank also facilitates no pre-closure fee and require no guarantor.  The documents needed include your KYC-PAN, address and ID proof, income proof, bank statement and one photograph, but you need to visit a nearby branch to have an application. 

The SBI's eligibility criteria seeks you to be at least 21 of years and your maximum age should not exceed 65 years. Your net annual income should be Rs 3lakh if salaried and for self-employed it should be Rs 4 lakh per annum.