SBI vs ICICI Bank vs PNB: Which bank offers the cheapest car loan

At its Monetary Policy Committee (MPC) meeting in June, the Reserve Bank of India (RBI) raised the repo rate by 50 basis points to 4.9%. Current and future borrowers of personal loans with floating interest rates, such as a home loan, will be affected by the most recent increase in repo rates.

On the other hand, auto loan interest rates can be fixed or variable. The interest rate on a fixed loan is fixed for the term of the loan. With a variable rate, the lending rate varies in response to changes in the lender’s base rate or marginal cost of lending (MCLR) rate.

Here is an overview of the auto loan interest rates offered by the

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State Bank of India Car Loan Interest Rates

The State finances up to 90% of the “price on the road”, the bank offers a loan term of 7 years for the purchase of new passenger cars, multi-utility vehicles (CUV) and SUVs.

SBI auto loans are tied to the one-year incremental cost of funds (MCLR) based landing rate, which is now revised to 7.40%.

For the SBI car loan, NRI car loan and insured car loan program, the interest rate ranged from 7.65% to 8.35%. Under the Loyalty Car Loan Program it ranges from 7.60% to 8.30% (CIC based rates apply). For a CIC score greater than 757, the interest rate will be 0.25 + 7.40% = 7.65% for a term of 3 to 5 years.

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National Bank of Punjab Car Loan Interest Rates

National Bank of Punjab car loans are linked to the Repo Linked Lending Rate (RLLR) (RLLR + BSP). Note that BSP is the added risk premium based on client risk.

Effective June 6, 2022, existing and new customers will see an increase in RLLR from 6.90% to 7.40% (repo rate (4.90%) + mark-up (2.50%)). A BSP commission of 25 bps will be added to the RLLR.

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ICICI Bank car loan interest rates

For car loans, the indicative borrowing rates in force from June 16, 2022 are as follows:

” 12-35 months: From 8.80%

” 36-38 months: From 8.3%

” 39-96 months: 7.85%* and more depending on CIBIL score and car model.

For a new car loan, the interest rate is based on the car segment, CIBIL score, customer relationship, loan term, etc.

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