Best interest rates on car loan?

[fageriaji]

Hello Guys,
Hope all you are doing good.
I need a car loan around 15 Lac for 4 year as I am planning to buy a new car.
Can anyone suggest best bank for car loan with lowest interest rates ?
My primary requirement is to avoid prepayment/ foreclosure charge.
Lowest processing fee and lowest interest rate.

@Abhishek012 , @D₹V @SSV any idea?

 

[6ix9ine]

My primary requirement is to avoid prepayment/ foreclosure charge.
Lowest processing fee and lowest interest rate.

One answer -> State bank of India

 

[fageriaji]

One answer -> State bank of India

SBI is notorious now a days as it has higher interest rates and floting interest rates.
My last 2 car loans were with SBI and I also prefer SBI but this time thinking to avoid it.

 

[knight]

Floating:
PNB - 8.8% + Proc fees
IOB - 8.95% , no proc fees
Indian bank ~ 8.9% afaik
Urban cooperative also has a decent rate for shareholders.

Fixed rate is usually upwards of 9.2 ~ 9.5%

(check with bank to confirm)

 

[fageriaji]

Floating:
PNB - 8.8% + Proc fees
IOB - 8.95% , no proc fees
Indian bank ~ 8.9% afaik
Urban cooperative also has a decent rate for shareholders.

Fixed rate is usually upwards of 9.2 ~ 9.5%

(check with bank to confirm)

Okkk, thank you

 

[Aditya12]

By the way interest rates may go down in coming months. Floating rate may work better.

 

[Hell_Kitty]

SBI is better option in my opinion because you can foreclose the loan after 1st EMI without any penalty. Most Private/PSU banks charge anywhere between 3-4% of principal amount to foreclose the loan that too after 12 months.

 

[SmartSave]

SBI is better option in my opinion because you can foreclose the loan after 1st EMI without any penalty. Most Private/PSU banks charge anywhere between 3-4% of principal amount to foreclose the loan that too after 12 months.

Not if you have MSME Cert. You can save on the foreclosure charges (private banks) and everyone regardless of their size of biz / freelancers should get one as it costs nothing but gives many benefits in such cases.

 

[anujdit]

Go for SBI Overdraft loan account (Maxgain), where you can put surplus money to avoid interest.

 

[fageriaji]

SBI is better option in my opinion because you can foreclose the loan after 1st EMI without any penalty. Most Private/PSU banks charge anywhere between 3-4% of principal amount to foreclose the loan that too after 12 months.

Thank for information but in SBI if you close before 2 year then there is a charge of 2%
And today I finalize my 3rd auto loan with SBI on 9.25% fix rate. Currently there is only stamp duty charge, no processing fee and other charges.

 

[fageriaji]

Not if you have MSME Cert. You can save on the foreclosure charges (private banks) and everyone regardless of their size of biz / freelancers should get one as it costs nothing but gives many benefits in such cases.

Brother I am government employee so no msme certificate.
All private bank charge processing fee for loan amount which is around 0.05% of loan amount + other various charges like noc charge, RC charge etc.

By the way interest rates may go down in coming months. Floating rate may work better.

Floating rate is not good if you take loan for 5 years. As if you took a loan in January 2022 it was 7.1 and now it is 8.8 whereas in January 2022 fix rate was 7.25 and it is still 7.25 .

Always check bank offer lower interest rate on floating and slightly higher on fix rate.

 

[prankster]

Check Federal bank, I read somewhere that they allow prepayment without penalty.

 

[KLB@96]

Always go for PSU banks, they are way cheaper than PVT banks. Personally holding car loan with Indian bank with 8.6 pc rate and no charges for processing fee except 500 for franking documents.