The car showrooms are buzzing in the festive season, even ahead of Dhanteras and Diwali. Car companies have announced festive offers to attract customers. Meanwhile, leading institutions—including Indian Bank, State Bank of India (SBI), and Kotak Mahindra Bank—have come up with competitive vehicle loan options. Here is a breakdown of where you can secure the most affordable financing.
Which banks are offering how much?
According to recent data on official sites, Indian Bank offers an interest rate starting at 7.75 per cent, while Bandhan Bank provide car loan rates starting at 9.47%. Below is a summary of key offers from select banks.
Bank Name | Interest Rate / Processing Fee | Key Benefit |
|---|---|---|
Indian Bank | Interest rate starting at 7.75%, processing fee completely waived (Zero). | No processing charge significantly reduces the overall cost of the loan. |
State Bank of India (SBI) | Interest rate starting at 8.70%, special concession on processing fee. | Direct concession on interest rates and processing fee waiver by the country's largest bank. |
Kotak Mahindra Bank | Interest rate starting at 8 per cent, 50% discount on processing fee. | Zero foreclosure charges (meaning no penalty for early loan repayment). |
HDFC Bank | Interest rate starting at 8.25%, processing fee as per bank rules. | Long tenure up to 8 years and zero foreclosure charge facility. |
What To Take Care While Taking a Vehicle Loan
- While buying a car on Dhanteras and Diwali is considered auspicious, you should not take a higher loan out of greed for a lower interest rate.
- Don’t fall for lower EMIs; it may cost you more as you have to pay it for several years.
- You should do some research on your expenses and understand all the charges, fees, and procedures involved to avoid future problems.