List of Top Banks and NBFCs Providing Car Loans in India

Top Banks and NBFCs Providing Car Loans in India

The demand for private automobiles has risen dramatically in recent years, with an increasing number of customers choosing this form of transportation as their primary means of transportation. Having a car is no longer regarded as a luxury, but rather as a necessity. Because the market is inundated with a multitude of vehicle finance alternatives, Indian customers have a difficult time deciding which loan is best for them. Low interest rates, variable term choices, flexible monthly instalment options, and the ability to select between a fixed or floating interest rate, depending on the customer’s needs, are all features of an excellent vehicle loan agreement.

There are commercial and public sector banks, as well as captive lending institutions. In India, private and public sector banks, captive lenders, NBFCs, and other financial institutions provide a variety of vehicle loan options. When choosing a vehicle loan, a consumer should examine several options, weigh the pros, and then make the best selection possible.

Criteria For Eligibility and Documents Required

Varying banks may have different eligibility conditions for vehicle loans. The following are some of the most prevalent criteria:

  • Individuals must be between the ages of 18 and 75 years old.
  • A monthly net income of Rs. 20,000 is required.
  • At least one year of experience with the present job is required.
  • Working for a government agency or a private firm, you must be salaried or self-employed.

Top Banks Offering Car Loans in India

Now, let’s talk about some of the top banks that offer car loans in India.

State Bank of India

  • The effective interest rate for SBI car loans starts from 7.20 percent onwards.
  • The duration of the loan contract might be up to 84 months.
  • It is possible to finance up to 90% of the on-road pricing.
  • Professionals and agriculturists can get a loan.

HDFC Bank

  • 7.75 percent is the starting effective interest rate for HDFC car loans.
  • The duration of the contract might be up to 84 months.
  • The maximum loan amount is Rs. 3 crore.
  • For certain models, 100% financing of the on-road price is available.

ICICI Bank

  • The effective interest rate for ICICI car loans start 7.90 percent onwards.
  • The duration of the contract might be up to 84 months.
  • The amount of the loan will be determined by the model, cost, and client profile, among other factors.
  • Customers who have been pre-qualified and pre-approved can take advantage of the deal.

Axis Bank

  • The effective interest rate starts at 7.45%.
  • The term of loan contract might last up to 96 months.
  • A loan of up to 100% of the on-road price may be offered.

Canara Bank

  • The effective rate of interest begins at 7.30 percent.
  • The duration of the contract might be up to 84 months.
  • It is possible to receive up to 90% of the on-road pricing.
  • Women are given lower interest rates.

Bank of Maharashtra

  • The effective rate of interest starts at 6.80 percent.
  • The loan term can last up to 84 months.
  • A loan of up to 90% can be offered on the basis of your profile.
  • There’s no prepayment penalty and processing fees.

Top NBFCs offering car loans in India

Although our country has a large number of NBFCs, here is a list of the top NBFCs in India right now.

Power Finance Corporation Limited

Power Finance Corporation Limited is a Navratna Status business that was formed in 1986. The company’s Chairman and Managing Director is Rajeev Sharma. Power Finance Corporation Limited is recognised for assisting various power projects around the country with financial support. It aids organisations that work in the power production, transmission, and distribution industries. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) both list the firm (BSE).

Shriram Transport Finance Company Limited

It is a private company based in Mumbai, India. Shriram Transport Finance Company Limited specialises in commercial and business vehicle financing, among other things. Since 1979, the firm has provided financing for Light Duty Trucks, Heavy Duty Trucks, Mini Trucks, Passenger Vehicles, Construction Vehicles, and Farm Equipment. General insurance, mutual funds, common assets, stockbroking, and general protection are the company’s specialities.

Bajaj Finance Limited

Bajaj Finance Limited is a company based in Mumbai, India. Bajaj Finserv is a subsidiary of Bajaj Holdings and Investments, which was formed in 2007. It is a well-known financial firm that provides loans to physicians for professional advancement, house loans, gold loans, individual loans, business loans, and entrepreneur loans. Apart from these, Bajaj Finserv also offers wealth management, money lending, and general insurance. It has approximately 1400 locations around the country and employs over 20000 people.

Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited is a financial services company founded by Mahindra & Mahindra. MMFSL (Mahindra & Mahindra Financial Services Limited) was founded in 1991 and now has over 1000 branches and over 3 million customers across the country. MMFSL is a well-known organisation with two affiliates that provide insurance and financial services for rural homes. It also offers gold advances, car advances, business advances, housing credits, working capital advances, and a variety of other services.

Muthoot Finance Ltd

Muthoot Finance Ltd is a company based in Muthoot, India. It solely gives out loans in exchange for gold jewellery. It is a market leader in the gold loan and financing business in India. Muthoot Finance Ltd also provides foreign exchange, money transfers, asset management, travel, and tourist services in addition to funding gold transactions. Muthoot Finance Branches also sell gold coins. The company’s headquarters are in Kerala, India, and it has more than 4,400 locations around the country. Muthoot Housing Finance (India) Ltd, which provides house loans, is also its parent business.

HDB Financing

HDB Financial Services is run by HDFC Bank, India’s largest private bank. Through a network of over 1,000 branches in 22 Indian states and three Union Territories, it provides a wide range of secured and unsecured financial loans. Personal and business loans, doctor’s loans, vehicle loans, gold loans, new to credit loans, enterprise business loans, consumer durables loans, construction equipment loans, new and used automobile loans, equipment loans, and tractor loans are among the secured and unsecured loans offered. Lending Business and BPO Services are the company’s two segments. It is now India’s fastest growing non-banking financial company.

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