Car Loan Interest Rates: Everything You Need to Know
Are you considering buying a new car but unsure about the car loan interest rates? Look no further! In this blog post, we will delve into the world of car loan interest rates, how they are calculated, and what factors affect them.
Car loan interest rates play a crucial role in determining the affordability of a new car. Whether you are a salaried individual or self-employed, public and private sector banks offer loans for new and used cars at specific interest rates on equated monthly installments (EMI). Your credit score also plays a significant role in determining the interest rate you will be offered. The higher your credit score, the lower the interest rate, and vice versa.
To help you navigate through the world of car loans, Forbes Advisor India has compiled a list of new car loan schemes and the interest rates currently offered by major Indian banks. Whether you are looking for a loan for a new car or a used car, we have got you covered.
But how are car loan interest rates calculated? It’s simple! The interest rate is calculated based on the principal amount, rate of interest, and tenure in months. Banks offer both fixed and floating interest rates on car loans, with each having its own set of benefits.
When applying for a car loan, it is essential to meet the eligibility criteria set by the bank and provide the necessary documents, such as proof of identity, address, and income. Banks may provide up to 100% funding for the on-road price of the new car, with a maximum loan tenure of 84 months.
So, how can you ensure you get the best car loan interest rates from your lender? Factors such as your credit score, collateral, and relationship with the bank can play a significant role in securing a lower interest rate.
In conclusion, understanding car loan interest rates is crucial when considering purchasing a new car. By being informed about the various factors that affect interest rates and how they are calculated, you can make a well-informed decision when applying for a car loan. Remember, the key to getting the best interest rate is to do your research and compare offers from different banks. Happy car shopping!