Best Car Loans in India 2024

Factors To Consider While Availing of The Best Car Loan

While availing of a car loan in India, it is important to keep a check on the following factors-

• Ensure That You Are Taking Out a Loan for the Right Car

If you are not sure which loan would suffice for the model of the car chosen, then it would be better to ask for assistance from your bank or financial institution so that they can help you choose the best one for your needs.

• Interest Rates and Other Charges

Suppose you are planning to get a bank loan for car. In that case, it is necessary to understand the loan sanction procedure, the applicable interest rate, and the knowledge of any additional charges. You should know these things before signing up for the deal since they can make or break your decision to take out this loan with them.

• Terms and Conditions

If you are looking for a car loan, there are a few things you need to keep in mind. For example, if you are planning to avail of a loan from your bank or any other financial institution, make sure that you check their terms and conditions. You can do this either online or by contacting them.

• Credit Score

You should also ensure that your credit history is clean and your credit score is high. If you have any defaults or bankruptcy in your credit history, it will be difficult for banks to give you a loan.

Best Banks For Car Loans India 2024: Overview

Following is an overview of the banks offering the best car loans

1) State Bank Of India

State Bank of India is an India-based banking and financial services company. The Company’s segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and Insurance Business. The Treasury segment consists of the entire investment portfolio and trading in foreign exchange and derivative contracts.

The Corporate/Wholesale Banking segment comprises the lending activities of the corporate accounts group, commercial client’s group, and stressed assets resolution group. The Retail Banking segment includes retail branches, primarily personal banking, lending activities to corporate customers, agency businesses and automated teller machines (ATMs). 

The State Bank of India also offers the best car loan rates. As a result, it is often a top choice for new car buyers.

2) Federal Bank

Federal Bank Limited (the Bank) is a banking company considered one of the best banks for a car loan. The Bank provides banking and financial services, including retail banking, corporate banking, and treasury operations. Its segments include Treasury, Corporate/Wholesale Banking, and Retail Banking.

Its Treasury segment operations include trading and investments in government securities and corporate debt instruments, equity and mutual funds, derivatives, and foreign exchange operations on the proprietary account and for customers.

Its Corporate/ Wholesale Banking segment consists of lending funds, accepting deposits, and other banking services to corporates, trusts, partnership firms, and statutory bodies. Its Retail banking segment constitutes lending of funds, acceptance of deposits, and other banking services to any legal person, including small business customers. 

3) Canara Bank

Canara Bank Ltd. is an India-based bank. The Bank's segments include Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations.

The Bank provides personal banking, corporate banking, non-resident Indian banking, Internet banking, and micro, small and medium enterprises (MSME) banking services. Its retail lending operations include education, car, housing, and other personal loans. 

4) Bank of Baroda

Bank of Baroda is engaged in providing banking and financial services in India. Its segments include Treasury, Corporate / Wholesale Banking, Retail Banking, and Other Banking Operations. In addition, its geographical part includes Domestic Operations and Foreign Operations.

It offers personal banking services, which include savings accounts, current accounts, and term deposits. In addition, it provides a range of digital products, which includes instant banking, such as Internet banking, mobile banking, cards, WhatsApp banking, digital signage systems (DSS), self-service passbook printers, and automated teller machines (ATMs).

It offers a range of loans, such as home, personal, education, gold, and some of the lowest car loan interest rates in India, which it is noted for offering widely.

5) Axis Bank

Axis Bank Limited (the Bank) is an India-based banking and financial services company. The Bank's segments include Treasury, Retail Banking, and Corporate/Wholesale Banking.

The Treasury segment includes investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading, and foreign exchange operations and offers a central funding unit.

Axis Bank offers a range of home loans, personal loans, education loans, car loans, etc.

Conclusion

A considerable sum of money on a car is a significant investment. Therefore, it requires an ample amount of thoughtful money management decisions. Hence, while taking a car loan or even searching for the best car loan in India, it is necessary to consider your repayment capacities, the interest rates of banks, the type of car loan required, etc.

Thus, while owning a car has become possible for all with the availability of car loans across India, it is necessary to see the best viable option and consider all the factors before you get a car loan.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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Research Analyst - Aakash Baid