Book Your Car at Lowest Interest Rates, Recent Trends in Car Financing and Market Analysis

When it comes to getting finance for your own car, finding a car loan with affordable monthly payments is not always easy. Here we do the hard-work for you to make your Car Financing Process much easier. We present to you the recent trends in car financing with proper market analysis and lowest interest rates, to give you best experience in buying car both online and offline with easy and most economic options.

Interests Offered by Different Banks on Car Loans

As per May 2018, here are some information related interest rates on purchasing car loans on various banks in India for top 20 cars.

Car loan Banks

Interest Rates

EMI per Rs 1 lakh for 7 Years

Axis Bank

8.50% - 11.25%

Rs. 1,584 - Rs. 1,725

Bank Of Baroda

8.80% - 10.55%

Rs. 1,599 - Rs. 1,689

Bank of Maharashtra

8.90%

Rs. 1,604

Canara Bank

8.70% - 9.35%

Rs. 1,594 - Rs. 1,627

Central Bank of India

8.85% - 9.95%

Rs. 1,601 - Rs. 1,658

Corporation Bank

8.75% - 9.50%

Rs. 1,596 - Rs. 1,634

HDFC Bank

8.50% - 11.25%

Rs. 1,584 - Rs. 1,725

ICICI Bank

8.82% - 12.75%

Rs. 1,600 - Rs. 1,806

IDBI Bank

9.00% - 9.10%

Rs. 1,609 - Rs. 1,614

Indian Bank

9.00%

Rs. 1,609

Union Bank Of India

8.85% - 11.85%

Rs. 1,601 - Rs. 1,757

Oriental Bank of Commerce

8.50% - 9.00%

Rs. 1,584 - Rs. 1,609

Punjab National Bank

8.90% - 9.10%

Rs. 1,604 - Rs. 1,614

State Bank of India

8.90% - 9.20%

Rs. 1,604 - Rs. 1,619

Uco Bank

8.85%

Rs. 1,601

Bank of India

8.90%

Rs. 1,604

United Bank of India

8.85% - 8.90%

Rs. 1,601 - Rs. 1,604

Syndicate Bank

8.95%

Rs. 1,606

 

Process of Car Financing

Once you have zeroed in on the car that you want to purchase, the next step is to apply for a car loan. There is a lot less paperwork involved than a home loan since the bank does not have to verify any asset as in the case of home loans. It takes about three to six days for you to get a car loan -a lot less time than a home loan.

 

Step by Step Break-Up of Car Loan Application Process:

Step 1: Enquiry with a lender : The first step is to choose a lender. Lenders will offer loans to you. You must negotiate with them to get the best interest rate. 

Step 2: Documents Collection: Then lender’s direct selling agent will visit you and collect your documents like proof of income, residence proof, and identity. 

Step 3: Field Investigation Agency Representative Visit: After submitting the documents, a field investigator will visit your home to double check the facts provided in the documents provided by you. Once the lender is satisfied with the veracity of your documents, the loan is approved. 

Recent Trends in Car Financing in India

Banks Like HDFC have introduced 30 minutes loan, by varyfying the the database with bio-metric processes and linking the customer portfolio with AADHAAR .Captive financing is another idea that many companies are using. The automobile company comes up with a financing company of its own, like Toyota Financial Services, Daimler Financial Services (for BMWs), TVS Services etc. Another new trend is Balloon Re-Payment, which is used by Kotak Car Finances. They allows you to pay off up to 75% during the tenure, keeping your loan repayments to a minimum. And the last 25% is to be paid off in the last EMI. 

Factors Associated with these New Trends :

  1. Better availability of credit post liberalization with private banks and non banking financial institutions offering credit
  2. Better access to finance beyond major cities and towns
  3. Use of technology and data by financers to predict trends and thereby modify loan offers
  4. Tie-ups between manufacturers and financers
  5. Simplification of loan procedures
  6. Transparent system for deciding rate of interest