Your dream of buying a car will come true! These banks are offering the cheapest 5-year loan
Many banks in the country are offering low interest rates on 5-year car loans of up to Rs 10 lakh. PNB is offering the cheapest rate of 7.85%, while other public and private banks are also offering competitive EMI options. Let's take a look at some of the banks offering low-interest loans.
If you're compromising on your dream of owning a car due to financial constraints, then stop. This news is for you. Yes, if you're planning a car loan of up to ₹10 lakh, we're going to tell you about some banks that offer the cheapest loans up to ₹10 lakh for a 5-year term.
This means they're available at a lower interest rate, and you'll have to pay lower EMIs. Let's take a look at the list of those banks.
If you're looking for the cheapest car loan to buy a new car, Punjab National Bank (PNB) currently offers the lowest interest rate. Car loan interest rates at PNB start at 7.85% per annum, resulting in a monthly EMI of just ₹20,205 for a 5-year loan of ₹10 lakh.
- Union Bank – Next comes Union Bank of India, where the starting rate is 7.90% and the EMI on the same loan amount and tenure comes to Rs 20,229.
- IDBI Bank – IDBI Bank is at third place, whose starting rate is 7.95% and EMI is Rs 20,252 per month.
- Bank of Baroda – Bank of Baroda is at fourth place with EMI of Rs 20,348 for 5 years at 8.15% interest rate.
- Canara and SBI Banks - Canara Bank charges an EMI of 20,372 at 8.20%. The country's largest bank, State Bank of India (SBI), offers a car loan rate of 8.75%, resulting in an EMI of 20,638.
Private bank rates
Looking at private sector banks, Axis Bank offers an EMI of ₹20,661 at an 8.80% rate. HDFC Bank offers a 9.40% rate, resulting in an EMI of ₹20,953.
The most expensive car loan on this list is from IDFC First Bank, where the interest rate goes up to 9.99% and the EMI for a ₹10 lakh loan for 5 years is ₹21,242 per month.