Planning a new car? Here are the latest car loan interest rates from top banks

livemint.com:

car loans, you can make a savvy, informed decision and ensure your new car doesn’t become a financial speed bump. (Source: Paisabazaar; Rates and charges as of 20th May 2024)

Bank of Maharashtra is offering a 0.25% interest rate concession for existing housing loan borrowers and corporate salary account holders. Similarly, Indian Overseas Bank provides a 0.50% interest rate concession to borrowers with credit scores of 800 and above, while those with credit scores between 750 and 799 receive a 0.25% concession.

Additionally, there is a concession of up to 50% on processing fees for PSB Apna Vahan Sugam. Car loan interest rates are influenced by several factors. Higher income often leads to better rates, particularly for salaried employees, although self-employed professionals with higher earnings can also benefit.

Loan tenure affects rates, with longer terms typically having higher interest due to increased risk. Younger borrowers often receive better terms as they have more time to repay. A good relationship with the bank, such as being a long-term client, can result in preferred rates.

The vehicle itself is also a factor; new cars from reputable manufacturers usually attract lower rates than older models. Adding a co-applicant can enhance repayment potential and secure lower rates. Employment at a reputable company can lead to better loan conditions, and a larger down payment can help negotiate lower interest rates.