CIBIL Score for Car Loan: Top Picks for 2024

List of Best Car Loan in India 2024

Here are some of the best available car loan options in India with minimal interest rates and low processing fees:

State Bank of India Car Loan

SBI offers a fantastic deal to finance your new car using your CIBIL Score. You’ll benefit from some of the lowest interest rates and EMIs available, along with a generous repayment period of up to 7 years. They cover up to 90% of the on-road price, including registration and insurance, and calculate interest on a daily reducing balance. This car loan option using a CIBIL Score is available for new passenger cars, Multi Utility Vehicles (MUVs), and SUVs. Plus, there are no prepayment or foreclosure charges after two years, and you don’t need to pay an advance EMI. You can also add SBI Life Insurance to your loan for extra protection. With minimal paperwork and fast processing, SBI makes it easy to get behind the wheel of your new car.

• Repayment tenure up to 7 years
• Financing up to 90% of on-road price
• No prepayment/foreclosure charges after two years
• No advance EMI is required
• SBI Life Insurance option for added rotection

Bank of Baroda Car Loan

The Bank of Baroda offers a car loan with competitive interest rates starting at 9%, financing up to 90% of the on-road price for new cars, SUVs, and multi-utility vehicles. The loan features a maximum repayment tenure of 84 months, no foreclosure charges, and flexible interest rate options. Applications involve minimal paperwork and can be processed online. The bank also provides up to 75% financing for pre-owned vehicles and includes options for insurance. To qualify for a car loan, maintain a CIBIL Score above 701 and ensure you have the necessary documents ready.

• Interest rates starting at 9%
• Finance up to 90% of on-road price
• Maximum tenure of 84 months
• No foreclosure charges
• 75% financing for pre-owned vehicles
• A CIBIL score above 701 is required

HDFC Car Loan

HDFC’s car loan offers low interest rates starting at 9.40% per annum, with financing up to ₹25 lakhs. The fully digital application process is quick, taking only about 30 minutes, and features flexible repayment terms of up to 84 months. Benefits include 100% financing, budget-friendly EMIs, and a top-up loan facility. The processing fee is only about 0.5% of the total loan amount, and any salaried/ non-salaried individual can apply for this loan.

• Interest rates start at 9.40% per annum
• Loan amount up to ₹25 lakhs
• Digital application process within 30 minutes
• Repayment tenure up to 84 months
• 100% financing on vehicle purchase
• The processing fee is 0.5% of the loan amount

Axis Bank Car Loan

Axis Bank Car Loans provide up to 100% financing with rates starting at 9.30% p.a. Priority, Privee, and Wealth Banking customers get added benefits. In contrast, salary account holders and pre-approved customers can skip income documentation. Fees include ₹3,500 to ₹5,500 for processing new car loans and 1% or ₹6,000 for pre-owned cars. Salaried individuals applying for this car loan must be between the ages 21-70 with a ₹2.4 lakh annual salary, and self-employed individuals should be between the ages 18-75 years with a minimum annual business income of ₹2 lakh to ₹18 lahks.

• Up to 100% financing is available.
• Interest rates from 9.30% p.a.
• Special benefits for Priority, Privee, and Wealth customers are available.
• Processing fee: ₹3,500 – ₹5,500 (new cars).
• Fee: 1% or ₹6,000 for pre-owned cars.

Union Bank of India Car Loan

Union Bank of India offers car loans with competitive rates starting at 8.70% annually. They charge a processing fee of ₹1,000 plus GST, but there’s no prepayment penalty. You can apply if you’re an Indian or NRI aged between 18 and 70, whether salaried or self-employed. Their Union Miles scheme lets you borrow from ₹20 lakh with flexible repayment terms of up to 7 years. It’s available for both new and used cars, and the rates start as low as 7.40% per annum. The minimum CIBIL Score for this car loan is 700.

• Interest rates start at 8.70% annually.
• Processing fee: ₹1,000 + GST.
• There is no prepayment penalty.
• Eligible: Indians or NRIs, age 18-70.
• Union Miles loan: up to ₹20 lakh.
• Repayment term: up to 7 years.
• Available for new and used cars.
• Rates for used cars start at 7.40%.
• Minimum CIBIL score required: 700.

Canara Bank Car Loan

Canara Bank offers up to 90% financing for any new or old car with minimal processing charges and also allows for any number of vehicle purchases with subsequent loans. The loan approval and disbursement process is extremely quick and easy, with no maximum amount limit and a low interest rate of 9.20% for cars valued below 15 Lakh and 8.80% for vehicles valued above 15 Lakh. The applicants don’t have to pay any prepayment penalties for this car loan, and the interest rates are calculated based on a daily reducing balance.

• Up to 90% financing for new/old cars
• No maximum loan amount limit
• Interest rate: 9.20% (cars below ₹15 Lakh)
• Interest rate: 8.80% (cars above ₹15 Lakh)
• No prepayment penalties for early closure

Punjab National Bank Car Loan

The Punjab National Bank offers car loans on any model or type of car, from SUVs to MUVs to Jeeps, with a high ceiling value of INR 100 Lakh. Any individual, corporation, or joint borrower can apply for the same with a good credit score and low margin value of 15% on new purchases. The purchased vehicle stays hypothecated to the bank until the customer repays the loan. While there is no set tenure of the loan, one must pay off the new cars within 84 EMIs, and the maximum age of salaried individuals at the time of repayment can be 70 years. The loan is available at a minimal interest rate of 9.80% and can go as low as 9.75% if the borrower purchases an E-vehicle.

• Loan available for all car types.
• Loan amount up to INR 100 Lakh.
• A maximum of 84 EMIs are available for new cars.
• Borrower’s age at repayment: up to 70 years.
• Interest rate starts at 9.80%.
• E-vehicles interest rate as low as 9.75%.

IDBI Bank Car Loan

The IDBI Bank offers car loans at a low interest rate of 8.85% p.a. with a minimum eligibility criteria of 2.4 Lakh p.a. salary. The applicants can acquire funds easily from this bank with flexible repayment plans for up to 7 years.  The processing charges on this are also waived off during festive seasons, and a low penalty of only 2% is applied for late payments. The processing fee on this car loan is just INR 1500 + taxes, and borrowers can pay off the loan six months after the approval with Nil prepayment penalties. Any salaried or self-employed professional over 18 can apply for the IDBI Bank Car Loan with a CIBIL Score of 700.

• Interest rate: 8.85% p.a.
• Loan tenure: Up to 7 years
• Late payment penalty: 2%
• Processing fee: ₹1,500 + taxes
• Prepayment is allowed after six months with no penalties
• CIBIL score required: 700+

IndusInd Bank Car Loan

Purchase your dream car with up to 100% financing by the IndusInd Bank Loan. This loan can be repaid easily in small instalments over a tenure of up to 60 months, and you just need to have a CIBIL score of over 600 to qualify for this car loan. With minimal processing charges of 5%, one can easily acquire the loan at just 8% p.a. interest rate. The minimum salary required for the IndusInd Bank Car Loan is just INR 2.5 Lakh annually. Any salaried or self-employed individual over 18 can apply for this loan.

• Up to 100% financing available
• Loan tenure up to 60 months
• Minimum CIBIL score required: 600+
• 5% minimal processing charges
• Interest rate: 8% p.a.

Federal Bank Car Loan

Avail the Federal Bank Car Loan at just 8.85% per annum and purchase any car you choose, with a maximum loan amount of 1 Crore.  The process is streamlined with minimal documentation, ensuring quick and hassle-free disbursement. Federal Bank supports pre-approved customers with expedited processing and a smooth financing experience. Any applicant over 18 can apply for this loan by submitting income-related documents like salary certificates and bank statements.

• Interest rate: 8.85% per annum.
• Maximum loan amount: ₹1 Crore.

List of Top 10 Car Loan Interest Rate

Here are the official interest rates for the top car loans in India with minimum interest rates and processing fees:

How Do You Apply For A Car Loan With A CIBIL Score?

Here are some steps you have to follow to apply for a car loan with any Indian bank/ financial institution:

• Check Your CIBIL Score: Ensure that your credit score/ CIBIL score is enough to meet the bank’s car loan eligibility criteria. Many financial institutions require a minimum CIBIL score for car loans to prove the borrower’s repayment ability. You can check it on the Urban Money website by submitting your contact details and PAN card.
• Research About The Top Lenders: Different banks and financial institutions have varying eligibility criteria and interest rates. You can compare the features of these institutions, to see which one suits you best financially.
• Fill In the Application and Submit Documents: After choosing the correct car loan from your respective bank, prove your identity, address and income. You must complete an online or offline application form mentioning your personal and financial details.

Once approved, you will receive the required funds for vehicle purchase. Ensure you pay your EMI timely to maintain a good credit score and avoid penalties.

What Is A Good CIBIL Score For A Car Loan?

As a rule of thumb, a CIBIL Score for a car loan of more than 750 out of 900 is considered good. It means that you have been paying off your debt and EMI promptly. A score of 650 is extremely low, and you might face difficulties acquiring a loan with this CIBIL ranking. Here is the minimum credit score required to apply for a car loan in some of the banks: