Core Insights - During the festive season, SBI is promoting an auto loan with zero processing fees, zero prepayment charges, no foreclosure fees after two years, and financing up to 100% of the on-road price [1][7] - Interest rates for new car loans from various banks range from 7.6% to 14.25% for a loan amount of Rs 5 lakh over a five-year tenure [2][7] - UCO Bank offers the lowest interest rate starting at 7.60%, while SBI's rates range from 8.80% to 9.90% [7] Interest Rates and Charges - Interest rates for car loans vary significantly among lenders, with public sector banks like Canara Bank and Bank of Maharashtra starting at 7.70% [3][7] - ICICI Bank and HDFC Bank have starting rates of 9.10% and 9.20% respectively [7] - Processing fees for car loans typically range from 0.25% to 2.50% of the loan amount, with certain lenders offering discounts during festive seasons [6][7] Factors Influencing Loan Rates - The interest rate on car loans is influenced by borrower-related factors such as credit score, income, and debt-to-income ratio, as well as loan-related details like loan amount, tenure, and down payment [2][7] - Broader market conditions and individual lender policies also play a significant role in determining the rates [2][7]
Car loans starting at 7.6% interest rate: Check what SBI, PNB, HDFC Bank, ICICI Bank are others are offering this festive season
The Economic Timesยท2025-10-01 03:35