Car Loans Interest Rates

There has been a lot of demand for cars in India and many top financial companies such as Bajaj lending, Mahindra, and Tata offer low car loan interest rates. Choosing the best loan in India for your car will definitely involve planning and research. The lending rates vary from one financial company to another when looking at auto financing. Many individuals tend to rush the car loans process and end up paying back the loan at a very high interest rate. The two types of interest rates for car loans in India are:

• Floating Interest rates: These depend on the Indian auto market and if the interest rates are increasing, the customer will need to pay the new interest rates. In a case where the rates decrease, the individual must pay the decreased car loans interest rates to the auto financing service companies.
• Fixed Interest rates don’t change throughout the tenure. You are approved at a certain interest percentage and it stays at that rate for the entire life of the loan.

Generally, the car loans interest rates will be different for a new car and a used car. The new car rates are generally lower than those of used cars. There are several banks and financial institutions which offer better and more financially beneficial interest rates for your new vehicle than others. We also offer the best rates for car insurance.

The new car bank interest rates generally range from 10% to 15.75%, whereas the used car interest rates range from 16% to 20%.

Get the best interest rates from top auto financing companies like Mahindra Finance, Bajaj lending and many more.

Car Loan Fees & Charges

Before applying for car loans, check to see if the bank has any other fees or charges that are applicable when you are receiving the loan. Generally, the bank will take a certain amount of money to sanction the loan amount for buying a car. The different types of fees and charges involved are:

Processing Fees

Processing fees are collected by the bank to process your car loan application. Generally, the car loan processing fees will be from 0.5% to 2% of the car loans amount. It will depend on the bank from which you took the loan. Use the interest rates calculator to calculate your EMIs.

The processing fees in different banks in India are approximately:

Axis Bank charges Rs. 3500 to Rs. 5500

ICICI Bank charges Rs. 2500 to Rs. 5000

HDFC Bank charges Rs. 2625 to Rs. 4950

The processing fees depend entirely on the bank and will be different with each bank. Check with the bank and get the information about the processing fees before you apply for car loans in India. You can get the best deals from top financial lending services in India such as Bajaj lending and many others.

Documentation Charges

The documentation charges are collected by banks or the dealer, as all the paperwork done is to process the loan application. It includes the title, registration, and other processes. The documentation charges vary based on the dealer; the state you are in and other factors. Check with the dealer or the bank about the processing charges, documentation charges and auto financing rates before applying for car financing loans.

Pre-payment Fees

Pre-payment fees are fees paid by the customer to the loan provider if the customer repays the car loans amount before the tenure ends. Repaying the total loan amount before the tenure, will certainly give you the chance to reduce the total interest rate amount paid. If the customer repays the total loan amount before the tenure, then the banks lose the interest. Therefore banks charge the pre-payment fees to level the interest and hence if it is higher, many customers will not repay the loan before the tenure. Pre payment penalty fees vary from bank to bank and rates often tend to be 1% to 5% of the car loan amount. If they charge for repaying the auto financing loan amount before the tenure, search for banks which have lower pre payment charges. BankandFinance.com have the best intereste rates from top service companies in India like Bajaj Lending, Mahindra and Tata.

Late Payment Charges

When taking a loan you agree to repay the principal amount and the interest through monthly installments. If there is are months wherein you are paying the EMI late, the auto financing company can charge a late payment penalty. Generally the late payment charges range from 1% to 2% of the overdue amount.

Cheque Bounce Charges

Cheque bounce charges are usually collected by the car dealer if there is an insufficient amount in the borrower’s bank account. It is important to make sure that there is enough money in your account to pay the EMI. If not, the dealer will charge you a cheque bounce charge as well. Normally the cheque bounce charges range from Rs. 200 to Rs. 450.

Stamp Duty

The stamp duty for auto financing in India is paid at the time of registration. The charges for stamp duty depend on the banks you prefer to go with.

Car Loan Cancellation, Re-booking Charges

In case you want to cancel or re-book the car loan, the bank will charge a certain amount to process the same information and send it to the auto loan financing companies.

Duplicate Statements

The lending bank may charge extra if the customer wants a duplicate statement from them. The customer will have to pay extra if they wish to apply for duplicate statements for insurance and schedule insurance. Use the auto finance calculator to calculate all the fees, charges and car loans interest rates for your car financing loans in India.

Beyond this there may be a few other charges that are applicable according to the bank such as Car Loan Repayment Schedule Charges, Legal Charges; foreclosure charges for the first 6 months and foreclosure charges for a period beyond 6 months. You can also check on our website about your loan status and all the fees and charges applicable from top companies like Bajaj Lending, Mahindra and Tata.

Check with the auto finance companies and consider all the different types of fees, charges and use our car loans interest rates calculator. Check BankandFinance.com for updated information on companies like Bajaj Lending, HDFC Bank Loans, SBI Bank and ICICI.