Car Finance

Owing to the presence of various conglomerates and private sector banks in India, funding a car has now become very trouble-free and effortless task. To benefit from its growing popularity, all banks are endorsing their products competitively in the market. Their products are customized with novel service offerings and subsidies. A comprehensive, flexible and modified financing alternative for the purchase of new cars are accessible throughout the nation. The best car finance scheme is the one that provides the lowest rate of interest and extended loan tenure. However, the best deal should not be estimated by solely considering EMI amounts, rather how much is entirely forfeited by you in the total loan term should be taken into consideration.

Characteristics of Car Finance

Banks reimburse upto 90% of the rate of the new car and 85% of the rate of the used car. Normally public sector banks provide lower interest rates compared to the non-banking funding firms The interest rate in Car finance is estimated on a monthly basis The banks provide refund term of 12 to 60 months. Some banks even provide 7 years of refund term For a salaried individual, banks offer loan up to 3 times of his yearly income. For a self employed person, banks offer loan up to 6 times of his yearly income.

Car Finance offered by various Banks in India:

Name of the Bank ICICI Bank IDBI Bank Reliance Consumer Finance ABN Amro Eligibility in terms of yearly income (Rs in Lakhs) 12 - 15 12 - 15 12 - 15 12 - 15 Rate of Interest 9.0-13.0 8.5 - 9.19 9.5 15.0 12.0 11.5 11.5 11.25 10.75 10.5-11.0 10.5 10.5 10.0 10.5-11.0 11.0 EMI in Processing Rs charges Prepayment costs

7,466 Rs 2500 to Rs 5000 5% on primary sum prepaid 8,048 7,394 Rs.2500 DNA 7,537 8,349 7,900 7,827 7,827 7,790 7,717 DNA NIL 1% on primary sum prepaid, eligible after 30 months 4% on primary sum prepaid

Syndicate Bank 10 United Bank of 12 - 15 India Indian Overseas 12 - 15 Bank SBI 15

NIL NA 0.50% of the entire NIL finance amount Rs 134 to Rs 168 1% on primary sum prepaid

0.50% of the entire 2% on primary sum prepaid finance amount Rs 500 NIL

Oriental Bank of 10 Commerce Kotak Bank 12 - 15

7,681 - 3% of the entire 7,754 finance amount 7,681 7,681 7,609

Allahabad Bank 10 HDFC Bank Tata Capital 18 12 - 15

5.75% of primary sum outstanding 2% of primary sum NIL outstanding 5% of primary sum Rs 1600 to Rs 3000 outstanding 0.5% of the entire 5% of primary sum finance amount outstanding NIL DNA

Punjab National 12.5 Bank Canara Bank 12 - 15

7,681 Rs 4000 7,754 0.1% of the entire 7,754 finance amount

Car Finance EMI Calculation:

Name of the Bank ICICI Bank IDBI Bank Reliance Consumer Finance ABN Amro EMI to be paid in 1st year 26,235 26,795 26,166 26,235 27,077 EMI to be paid in 2nd year 13,705 14,263 13,637 13,705 14,546 13,705 13,982 14,052 14,017 13,878 13,913 13,982 13,913 13,913 13,843 13,913 13,982 13,982 EMI to be paid in 3rd year 9,540 10,108 9,470 9,540 10,400 9,540 9,822 9,893 9,857 9,715 9,751 - 9,822 9,751 9,751 9,680 EMI to be paid in 4th year 7,466 8,048 7,394 7,537 8,349 7,466 7,827 7,827 7,790 7,717 7,681 7,754 7,681 7,681 EMI to be paid in 5th year 6,228 6,826 6,155 6,337 7,137 6,228 6,598 6,598 6,560 6,485 6,448 6,523 6,448 6,448 6,374 6,448 6,523 6,523 EMI to be EMI to be paid in 6th paid in 7th year year 5,520 5,408 5,787 5,787 5,672 5,634 5,634 5,710 5,710 4,942 5,216 5,097 5,058 5,058 - 5,137 -

Syndicate Bank 26,235 United Bank of 26,514 India Indian Overseas 26,585 Bank SBI 26,549 Oriental Bank of 26,410 Commerce Kotak Bank 26,445 26,514

Allahabad Bank 26,445 HDFC Bank 26,445 Tata Capital Punjab National Bank Canara Bank 26,375 26,445 26,514 26,514

7,609 7,681 9,751 - 9,822 7,754 9,822 7,754