Car Loan Interest Rate, Documents, Type of Interest Rate

There are several lenders who offer car loan in India. The Interest rate for the car loans in India starts at as law as 8.40% p.a. Based on your credit rating you can avails a car loan which finances up to 100% of the non-road price of the car.

Interest Rate of Car Loan

Name of the Bank	Interest Rate
State bank of India	8.40% onwards
Indian Overseas Bank	9.80% onwards
Jammu Kashmir Bank	RLLR + 0.75% onwards (floating) RLLR + 1.50% onwards (fixed)
Canara Bank	Canara Bank
HDFC Bank	8.75% onwards (Rack Interest)
Karur Vysya Bank	9.35% onwards
South Indian Bank	Repo Rate + 5.15% onwards
IDBI Bank	9.10% onwards (floating)
Yes Bank	Contact the bank
Karnataka Bank	9.07% onwards
Federal Bank of India	10.75% onwards
Punjab National Bank	8.65% onwards
Tamilnad Mercantile Bank	10.00% onwards
Union Bank of India	8.80% onwards

Type of Interest Rate

Fixed Interest Rate	Floating Interest Rate
Interest rate is higher	Interest rate is higher
EMIs will remain constant	EMIs will change according to MCLR changes
Comes with lower risk	Comes with higher risk
Easy to prepare budgets with these rates	Tough to maintain budgets as rates keep changing
Offers security to borrowers	Offers savings to borrowers
Good for a short loan tenure (3 to 10 years)	Good for a long loan tenure (20 to 30 years)

Documents for Car Loan

• Valid Passport
• Permanent Driving license [recent, legible, laminate]
• Voters ID Card
• Job card issued by NREGA
• Letter issued by the National Population Register containing details of name & address
• Aadhar Card(only if Submitted voluntarily & backed by Aadhar consent Letter.1st 8 digits of Aadhar Number on physical copy to be redacted) Aadhar Card can be Physical Aadhar or Print out of e- Aadhar (not older than 30 days from the date of application).
• Latest salary slip and Form 16 as income proof
• Bank statement of the previous 6 months

Self employed individuals

• Audited balance sheet
• Profit and loss account of the previous 2 years
• Company ITR for the previous 2 years
• Telephone bill
• Electricity bill
• Shop & establishment art certificate
• SSI registered certificate
• Sales TAX certificate
• Bank statements of the previous 6 months

Self employed individuals (Private Companies)

• Audited Balance Sheet
• Profit & Loss Account of the previous 2 year.
• Company ITR for the previous 2 year
• Telephone Bill
• Electricity Bill
• Shop & Establishment Act Certificate
• SSI Registered Certificate
• Sales Tax Certificate
  ​​​​​​​Bank statement of the previous 6 months

Self Employed Individuals (Public Limited companies)

• Audited Balance Sheet
• Profit & Loss Account of the previous 2 years
• Telephone Bill
• Electricity Bill
• Shop & established Act certificate
• SSI registered certificate
• Sales TAX certificate