Best Car Loan In India 2020 | Bank With Low Interest Rates On Car Loans

Best Car Loan In India

Having a car is a dream of almost every individual in the world, people’s desire to possess a four wheeler in their house parking. Now days, It becomes an essential need of daily life because many times you need to travel long distance. If you have your own conveyance then you need not to depend on other public transport equipments. As the inflation increases the price of the car is also increases so how to choose Best Car Loan in India 2020. To know which bank provides you Low Interest Rates on your Car Loans, just scroll down the page.

You can also say car is your second home because you spend most of the time in your car after your home or life partner. If you do not have bulk amount in your accounts to purchase it then Car loan is the best way to alter your dream into reality. Bank provides the money and you have to pay some interest on loan amount in the form of small EMIs. You take the avail of this banking facility. We are presented the list of best car loan providers; you can pick out your bank after estimating their interest rate and services.

Best Car Loan Providers Bank With Low Interest Rates

  • Axis Bank
  • Dena Bank
  • Federal Bank
  • HDFC Bank
  • ICICI Bank
  • L&T Finance Limited

Interest Rate Of Major Banks

Bank providers Loan interest
Axis Bank 9.5% to 15%
Dena Bank 9.95%
Federal Bank 9.75%
HDFC Bank 9.25% to 11.25%
ICICI Bank 9.50% to 10.75%
L&T Finance Limited 11% to 12%

Check Also – 10 Things To Consider Before Taking A Car Loan

Axis Bank

Do you want to purchase car and for it you are looking for a car loan provider bank on lowest interest then Axis Bank must be your first choice because it is third largest private sector and well known bank in India. It is the trustable bank which provides car loan facility at attractive and affordable interest rates. You can acquire here uncomplicated processing and excellent banking service. It produces online facility also so customer can apply online as well as offline. It posses more than 2,959 branches so you can visit to the nearest axis branch. Procedure of availing car loan is trouble free and services are customer friendly. Just check your eligibility criteria and apply for car loan with essential documents.

Interest Rate (Monthly reducing balance) 9.5% to 15%
Processing Fees Up to Rs. 5500
Loan Tenure 1 year to 7 years
Pre-closure Charges 10% of principal outstanding till 6 months

Features Of Axis Bank Car Loan

  • You can obtain best interest rates on car loans.
  • Customers can obtain tremendous banking facilities.
  • You can apply for the car loan which exceeds to one lakh.
  • The bank provides exclusive benefits as net banking and Wealth Banking etc.
  • The Tenure of car loan exists between 1 to 7 years.
  • If you have already accounted with this bank then you may earn special banking offers.

Dena Bank 

If you searching trustable bank which provides you loan facility at affordable interest rate then Dena Bank is really excellent option of you. It produces its banking loan facility as per banking terms and conditions. You can obtain here fast approvals and quick processing service. It is leading private sector bank. You can enjoy tremendous banking service because always take care of the customer’s convenience. There are lots of financial schemes are available for two wheelers and four wheelers.  Currently, bank has 1,773 branches across the India so you can easily found the nearest branch. You may apply for car loan via online.

Interest Rate General Customers – 9.95%
Women Offer – 9.85%
Processing Fees Nil
Pre Closure Charges 0% on the principal outstanding (plus Service Tax)
Loan Tenure 1 year to 7 years

Features Of A Dena Bank Car Loan

  • Dena bank sections loan maximum amount of 8 lakhs.
  • Customer can select loan tenures for up to 60 months.
  • You may acquire ease of online banking facility.
  • You need not to pay any extra fee.
  • The auto loan of Dena bank is 20%

Check Also – Car Loan Interest Rates Of Banks

Federal Bank

It is fourth largest major commercial bank of India whose headquarter is located in Kochi (Kerala). You can change your dream into reality though this home loan banking facility. It is well reputed bank so can trust on it. It produces the loan facility as attractive and affordable interest rate. The loan procedure of this bank is simple and EMIs are also low rather than other bank. Online banking facility is also available so you can easily apply there by visiting on their website. You need to check eligibility criteria and collect required documents which are essential for the banking procedure.

Interest Rate (Monthly reducing balance) 9.75%
Processing Fees Up to Rs.5L – Rs.1500/-, Above Rs.5L – Rs.2500/
Loan Tenure 1 year to 5 years
Pre Closure Charges 2% on the principal outstanding

Features Of Federal Bank Car Loans

  • It doesn’t matter you have Indian residence or not both are applicable to apply here.
  • The bank provides convenience terms and conditions.
  • Customer can obtain low EMI facility.
  • The bank produces hassle free processing procedure.
  • Online facility is available for the ease of the users.
  • The applier can obtain tenure of up to 7 years.


HDFC is the fifth largest Indian bank which is founded in 1994. You acquire attractive interest rate for car loan. It covers a large range of cards and provides car loan facility. No wonder it offers tremendous loan facility you need to essential documents with your salary slip. It provides a car loan service up to 100% of the value. The bank will take short duration just two days of loan application submission.

Interest Rate (Monthly reducing balance) 9.25% to 11.25%
Processing Fees Up to Rs. 5,150
Loan Tenure 1 year to 7 years
Pre-closure Charges 6% of principal outstanding (plus ST) from 7 to 12 months.

 Features Of HDFC Bank Car Loan

  • You can get fixed EMI procedure which is completely safe and secure.
  • It offers one of the lowest EMI option.
  • To submit the income document is mandatory.
  • The lowest down payment option is also available.
  • Users can also take Repayment tenure up to 7 years
  • One of the lowest payment options is present here.


ICICI is the India’s number one private sector bank by the Indian market capitalization. Headquarter is located in Mumbai (Maharashtra). Customer can acquire here awesome schemes and attractive interest. To take the car loan from the ICICI bank is hassle free. It produces a huge number of banking products and financial services. The approvals of this bank are quick sanctioned with lots of benefits. It has 4,450 branches across the India so you can easily to the nearest branch of this bank. Just your eligibility criteria and apply here. You can also apply to this bank for car loan by visiting on its website.

Interest Rate (Monthly reducing balance) 9.50% to 10.75%
Processing Fees Up to Rs. 6,153
Loan Tenure 1 year to 7 years
Pre-closure Charges Nil

Features Of An ICICI Car Loan

  • It makes your car loan convenient by providing attractive schemes.
  • The process of documentations is also very fast.
  • The processing fee is depends on the amount of loan.
  • The car loans of this bank are non-refundable loans.
  • You can extend the tenures of car loan up to 7 years.

Know About – Best Home Loan Banks In India

L&T Finance Limited

Larsen and Toubro Financial Services or L&T Finance was founded in 1994. You can take avail of many banking products and loan facility like as home loans, car loans and car insurance and many more. It produces interest rate and fees charges as per market standards which are affordable to its users. EMIs will be calculated on the basis of loan amount. It provides banking services to the individuals or corporations. One of the biggest advantage of this bank is there is no Guarantor required for the approval of the loan. The applier age must lie between 18 years to 65 years.

Interest Rate (Monthly reducing balance) 16.00% to 17.00%
Processing Fees 2% of Loan amount
Loan Tenure 1 year to 5 years
Pre-closure Charges 2% of outstanding amount + ST

Features And Benefits Of L&T Finance Car Loan

  • It is available for wide range of cars manufactured by various automakers.
  • Users can obtain repayment tenure is maximum 5 years.
  • Customer can apply here at minimum amount of Rs 1 lakh.
  • The bank produces various loan schemes.
  • There is no any hidden charge; the processing process is very gentle.

Documents Required For Car Loan

  • Signature form
  • Current photograph
  • Id proof
  • Last 6 month bank statement
  • Residence proof
  • Last 3 months salary slips
  • Form 16 or income tax returns

Now days, we can’t imagine to live without a car because own vehicle is so important, we can’t spend our single day without our conveyance. It is really typical to purchase own car only with savings especially for middle class person. Lenders in India produce car loans as per peoples demand. Those are unable to buy car with their income they can avail of this banking service and purchase your own car at small installments.


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