Planning to buy a car this Akshaya Tritiya? Check which bank is offering lowest interest rate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As Akshaya Tritiya, the auspicious occasion believed to bring prosperity and success, approaches on May 10 this year, the automotive industry gears up for a surge in sales. Traditionally associated with purchasing gold, this festival has also become synonymous with acquiring new assets, including vehicles like cars and bikes.

In anticipation of this festive period, banks generally come out with offers on car loans to attract consumers looking to make a big-ticket purchase.

Among the banks vying for attention with competitive interest rates are Union Bank of India, State Bank of India, and ICICI Bank.

According to data compiled by Bankbazaar.com, these banks are currently offering car loans of ₹10 lakh for a duration of four years at interest rates ranging from 8.70% to 9.10%.

Union Bank of India is currently offering interest rate of 8.70%, translating to an EMI of ₹24,565 on the same.

State Bank of India (SBI), the largest bank in India, follows closely with an interest rate of 8.75%, along with other major players like Punjab National Bank (PNB), Canara Bank, and Indian Bank, offering the same rate.

The EMI for loans from these banks amounts to ₹24,587.

Bank of India (BOI) offers an interest rate of 8.85%, resulting in an EMI of ₹24,632 for a four-year car loan of ₹10 lakh.

Meanwhile, Bank of Baroda (BOB), a government-owned bank, extends car loans at an interest rate of 8.90%, with an EMI of ₹24,655.

Moving towards the private sector, ICICI Bank offers car loans at a slightly higher interest rate of 9.10%, translating to an EMI of ₹24,745.

Axis Bank follows suit with an interest rate of 9.30%, resulting in an EMI of ₹24,835.

HDFC Bank, another major player, offers car loans at 9.40% interest, with an EMI of ₹24,881.

It’s important to note that the interest rates mentioned here are indicative and subject to change based on the banks’ terms and conditions.

The data was collected by CNBC Awaaz from the banks’ websites on April 23.

The calculation of the EMI is based on a loan amount of ₹10 lakh with a four-year tenure and assumes zero processing and other charges.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow