New Delhi: Bringing home a new car during the festive season is a special experience and the car-buying process can be smooth and stress-free when you have the right information at hand. Many banks offer attractive deals which includes flexible repayment options, affordable EMIs and even 100 per cent financing on select vehicles. By comparing interest rates from different banks, you can ensure you get the best loan option before making your purchase.
With the festive season approaching, including Dussehra and Diwali many banks are rolling out special offers on car loans. These include reduced interest rates, waived processing fees, and exclusive freebies and discounts, making it a great time to finance your new car.
What is the minimum credit score required to qualify for a car loan?
There is no set minimum credit score for securing a car loan from HDFC Bank, according to their website. However, they note that a lower credit score could limit the loan amount available to you. “A credit score above 750 is considered excellent for loans. This will allow you to get a higher loan amount at the most affordable car loan rates,” the website explains.
Auto loan interest rates, known as annual percentage rates (APRs), are influenced by several factors, including your income, debt, credit score, car value, loan amount, loan term, and the RBI repo rate. While the car type doesn’t directly impact the rate, its price can play a role.
Here are the interest rates for a ₹5 lakh car loan with a 5-year repayment period:
Additional Benefits to Consider:
– Bank of Maharashtra offers a 0.25% interest rate discount for existing home loan borrowers and corporate salary account holders.
– Indian Overseas Bank (IOB) provides a 0.50% interest rate reduction for borrowers with credit scores of 800 or higher, and a 0.25% discount for those with scores between 750-799.
– Punjab and Sind Bank offers up to a 50% concession on processing fees under its PSB Apna Vahan Sugam scheme.
