Kamalkk Kannan asked:
India has several good government and private banks that offer different car loan schemes with varying interest rates. It is natural for buyers to get confused looking at completely varied auto loan rates and schemes. There are simple ways by which you can compare and contrast car loan rates offered by different banks.
Start your comparison by classifying the banks into two broad sectors. One would be government run banks like State Bank of India, Union Bank, Punjab National Bank etc. Other category would be private ones like HDFC, ICICI Bank, HSBC Indian Bank etc.
Government run banks generally would have strict regulations when compared to private run banks. Hence car loan interest rates from government banks may not be as attractive like those of private banks. Here you will have to make a choice whether to go for attractive rates by private banks with possible hidden costs or go for government banks that are much safer to deal with.
Once you have decided your category, you will have to zero down based on the amount you would like to borrow. For example, ICICI bank offers attractive rates for smaller cars with value over one lakh. The limit and auto loan interest rates would be different across banks for different amounts.
Some car manufacturers have tie ups with banks to help customers with easy finance options. For example, Citicorp India would be offering attractive rates when financing selective cars including Maruti 800 (which is a popular small low priced car).
Finally you would be left with two or three banks with two or three loan schemes. Among these you will have to make a strict comparison of the interest rates and repayment periods to arrive at your choice. These data can be found from several leading websites and portals from India.
Alan
India has several good government and private banks that offer different car loan schemes with varying interest rates. It is natural for buyers to get confused looking at completely varied auto loan rates and schemes. There are simple ways by which you can compare and contrast car loan rates offered by different banks.
Start your comparison by classifying the banks into two broad sectors. One would be government run banks like State Bank of India, Union Bank, Punjab National Bank etc. Other category would be private ones like HDFC, ICICI Bank, HSBC Indian Bank etc.
Government run banks generally would have strict regulations when compared to private run banks. Hence car loan interest rates from government banks may not be as attractive like those of private banks. Here you will have to make a choice whether to go for attractive rates by private banks with possible hidden costs or go for government banks that are much safer to deal with.
Once you have decided your category, you will have to zero down based on the amount you would like to borrow. For example, ICICI bank offers attractive rates for smaller cars with value over one lakh. The limit and auto loan interest rates would be different across banks for different amounts.
Some car manufacturers have tie ups with banks to help customers with easy finance options. For example, Citicorp India would be offering attractive rates when financing selective cars including Maruti 800 (which is a popular small low priced car).
Finally you would be left with two or three banks with two or three loan schemes. Among these you will have to make a strict comparison of the interest rates and repayment periods to arrive at your choice. These data can be found from several leading websites and portals from India.
Alan
