As the festive season approaches, bringing home a brand-new car has never been easier. Many banks are offering special deals on car loans, including reduced interest rates, waived processing fees, and exclusive festive discounts.
Key Factors Affecting Car Loan Rates
Car loan interest rates are influenced by several factors, including:
- Income and debt
- Credit score
- Car value
- Loan amount
- Loan duration
- RBI repo rate
What Credit Score Do You Need?
While there isn’t a strict minimum, credit scores above 750 are considered excellent, helping you secure higher loan amounts and lower interest rates.
Sample Car Loan Rates (as of 8th October 2024)
Interest rates for a ₹5 lakh loan with a 5-year tenure vary, with existing housing loan borrowers and corporate salary account holders receiving a 0.25% interest rate concession. Borrowers with credit scores above 800 can enjoy up to a 0.50% concession.
Pro Tip: Look out for festive offers from banks, such as up to 50% off on processing fees through schemes like PSB Apna Vahan Sugam.
Before you finalize your car loan, make sure to compare the offers across different banks to find the most affordable deal for you this festive season!