SBI Vs HDFC Bank Vs ICICI Bank: Car Loan Interest Rates, Features Compared

A car loan is a personal loan that allows the potential buyer to pay the vehicle off in monthly payments. In simple words, a borrower take car loan from a lender to pay for the purchase of a vehicle and agree to pay back the money in installments over the course of the loan. Car loan borrowers can avail loans from different banks at different rates of interest. Banks like State Bank Of India (SBI), HDFC Bank, ICICI Bank, among others offer varied types of cars loans which can be chosen by borrower as per their prerequisites. 

State Bank of India (SBI) new car loan scheme

SBI offers new car loan scheme with low interest rates, zero foreclosure charges, minimal paperwork and quick disbursements, as mentioned on the official portal of country's largest lender. SBI's new car loan scheme is available for purchase of new passenger cars, Multi Utility Vehicles (MUVs) and Sport Utility Vehicle (SUVs). With effect from March 1, 2018, SBI charges a rate of interest of 8.9 per cent to 9.4 per cent on auto loans. (Also read: SBI Loyalty Car Loan Scheme: Things You Should Know Before You Apply)

These loans include car loans, NRI car loan and SME retail car loans (excluding taxi, transport operators and fleet segments). Among the offerings under its auto loan products, SBI charges a rate of interest of 17.40 per cent on two-wheelers loans. This rate is 9.25 per cent above the 1-year MCLR of 8.15 per cent. SBI charges a rate of interest of 11.8 per cent on loan to own a super bike. This rate is 3.65 per cent above the 1-year MCLR of 8.15 per cent, according to the SBI website. (Also read: SBI Loans: How You Can Avail Home Loan, Education Loan, Car Loan And Others)

A regular employee of state / central government, public sector undertaking, private company or a reputed establishment where the net annual income of applicant and/or co-applicant if any, together should be a minimum of Rs. 2,50,000. The maximum loan amount that can be given in this case is 48 times of the net monthly income.

ICICI Bank's car loan scheme

ICICI Bank offers car loans up to 100% ex-showroom price of the car, with attractive interest rates and up to 7 years tenure, as mentioned on the official website of ICICI Bank. For existing ICICI Bank customers, the bank offers extended scheme. Existing customers also get the benefit of reduced documentation. (Also read: PNB, SBI, ICICI Bank, HDFC Bank Fixed Deposit (FD) Interest Rates)

ICICI Bank also offers pre-owned car loans up to 80 per cent on the valuation of the car. The bank gives loan tenure up to 5 years.

HDFC Bank's car loan scheme

HDFC Bank offers attractive interest rates on car loans, as mentioned on the official website of the bank. The eligibility criteria for car loans are applicable for both salaried and self-employed individuals. HDFC Bank's car loans include flexible repayment tenure and EMIs, along with 100 per cent financing on select vehicles, according to the bank's website. (Also read: Recurring Deposit (RD) Interest Rates: SBI Vs ICICI Bank Vs HDFC Bank Vs Post Offices)

One can borrow up to 3 times of annual salary in case of salaried professional and 6 times of annual income in case of self-employed professionals. Borrower can choose any repayment option from 12 to 84 months. Most passenger cars and multi-utility vehicles manufactured by India's leading automobile companies can be financed for HDFC's new car loans.