The interest rates on a car loan starts from as low as 7%. However, the interest rate provided by your lender on your car loan depends on your creditworthiness. If your credit score is high, you may be able to negotiate a lower interest rate on your car loan.
Generally, the repayment period of a car loans ranges from three years to seven years. You can choose the best vehicle loan for your needs with a payback term of up to 8 years. You can get a loan for 90 percent to 100 percent of the car’s on-road cost. If you want to acquire the best interest rate possible, you should plan ahead of time before going shopping. Before you go to the dealership, learn how to qualify for a vehicle loan. Examine your credit history and take notice of your CIBIL score. Your interest rate will be cheaper if your credit score is higher. Don’t forget to get ready for important discussions as well such as prepayment charges and other hidden costs. Depending on credit score, this can range from 7%.
Eligibility to Avail A Car Loan
The car loan eligibility varies from one lender to another. However, there are some requirements that are common in nature. Here, you can read the basic car loan eligibility requirements mentioned below-
- Individuals must be between the age gap of 18 and 75 years old.
- A monthly net income of Rs. 20,000 is necessary to avail a car loan.
- At least one year of work experience with your current job is required.
- Working for a government agency or a private enterprise, you must be salaried or self-employed.
- CIBIL score of 700 and above.
What is the maximum car loan amount you can avail?
The maximum loan amount you can acquire varies depending on the bank. You can verify your qualified loan offer based on the car you chose. In general, most banks give loans for 80 percent to 90 percent of the car’s on-road price. Few banks will also lend you up to 100% on a new auto loan based on your income and credit history. Hence, the maximum loan amount one can avail depends on the candidate’s creditworthiness and his financial background. If you are a candidate who is working in a reputed organization having a very high monthly income, you may get 100% funding on your car.
Generally, the maximum amount for a car loans can be 0.6% of the monthly income. You can also check your car loans eligibility and the maximum amount you can avail with the help of a car loans eligibility calculator. This calculator will help you know more about your offered car loans like the maximum loan amount based on your income and credit history, repayment period and other details.
Car Loan EMI Calculator
The monthly payments you make to the lender to repay your car loans are referred to as EMIs, or Equated Monthly Installments. The principal as well as the interest are included in these payments. The EMI amounts you must pay are determined by the length of your car loans. Loan repayment is stretched over a bigger number of years and the installments are smaller for a longer duration, whereas installments are larger for a shorter term.
You can use the car loan EMI calculator to determine your car loans EMIs on an advance basis. This will help you in your budgeting and planning financial control.
Car Loans Interest Rates
The car loan interest rates of some of the popular banks are here below-
- Bank of Baroda Car Loans start at 7.00 percent p.a. and go up from there.
- Canara Bank Car Loans start at 7.30 percent p.a.
- Axis Bank Car Loans start at 7.45 percent p.a. and go up from there.
- HDFC Bank’s interest rate ranges from 7.95 percent to 8.30 percent.
- ICICI Bank has a starting rate of 7.90 percent onwards.
The Bottom Line
The car loans interest rate depends on your creditworthiness and credit history. If you have a high CIBIL score of 750+, you can avail a hassle free car loans. Before applying for a car loan, you can check your credit score by making a CIBIL score login. It is advisable to first check your CIBIL score and then apply to avoid the rejection if your car loan application.