Car Loan Offers: SBI vs HDFC Bank vs Axis Bank vs Bank Of Baroda vs Canara Bank

Diwali is one of the most important festivals for the Hindu community and is celebrated with much excitement and enthusiasm in India and worldwide. It is a festival when people light lamps in their homes and make important purchases such as stock investments, gold, real estate, vehicles, etc. Many businesses also offer discounts and special offers during the period of Diwali to attract more and more customers. If you are looking to buy a car on the religious occasion of Diwali, many banks offer attractive car loan options to enable potential buyers to buy their dream car.

For your consideration, we have compiled a set of car loan options offered by major banks in India:

Bank Of Baroda: Bank of Baroda offers a car loan with a maximum loan amount of up to ₹1 crore. The rate of interest on Bank of Baroda car loans starts at 7.00% per annum but can go up depending on loan amount and tenure. The tenure of repayment ranges from 12 months to 84 months. Under this Bank of Baroda car loan, you can finance up to 90% of the price of your car as a loan. The loan will have an application processing fee of ₹1,500. 

Canara Bank: Under the Canara Bank car loan, there is no upper limit to the amount of loan that you can apply for. The interest rates for Canara Bank car loan ranges between 7.35% to 9.90% per annum, depending upon the amount of loan and repayment tenure. A processing fee of 0.25% of the loan amount applies, with a minimum fee of ₹1,000 and a maximum fee of ₹5,000. The repayment tenure under the Canara Bank car loan ranges from 12 months to 84 months. The repayment tenure for loans for second-hand cars is 60 months. Under this car loan, up to 90% of the car’s total value can be obtained as a loan. 

Axis Bank: The Axis Bank car loan starts from a minimum amount of ₹1 lakh and there is no specified upper limit. The interest rates for Axis Bank car loan starts at 8.70% per annum to 10.95% per annum for new cars. The tenure of repayment ranges from 12 months to 84 months. A processing fee of ₹3,500 to ₹5,000 will be applicable. Moreover,  Axis Bank car loan allows you to get 100% value of the car in the form of a loan. 

State Bank of India (SBI): SBI offers car loans with a maximum loan amount which can be 48 times the net monthly income of a salaried individual or 4 times the net profit of a self-employed individual or business owner. The maximum tenure of repayment is 7 years. The interest rates for these car loans range between 7.70%  per annum to 13.25% per annum. Up to 90% of the car’s value can be obtained as a loan and a 0.40% processing fee would be applicable. 

HDFC Bank: The HDFC bank offers car loans up to a maximum amount of ₹10 crores and more importantly, you can get 100% value of your car financed through the loan. The tenure of repayment ranges from 12 months to 84 months. 0.5% of the loan amount would be charged as a processing fee, with a minimum payment of ₹3,500 and a maximum payment of ₹8,000. 

Disclaimer: The interest rates and figures mentioned here have been recorded at the time of writing and are subject to change over time. This article does not intend to pass on any financial advice and BQ Prime does not endorse any of the loan providers mentioned above. Take loans at your own discretion.