Banks and other lenders have kept the ‘gifts’ coming for borrowers this festive season in form of concessional interest rates and processing fees. Home and car loans are the two particularly favored categories, with public sector banks taking the lead in both categories.
For a car loan of Rs 10 lakh with a tenure of seven years, the interest rates start from 7.1 percent. State-owned lender Punjab & Sind Bank offer this lowest rate and the equated monthly installment (EMI) works out to Rs 15,142. It is followed by another public sector bank (PSB) – Central Bank of India – that is offering an interest rate of 7.25 percent, as per data from Bankbazaar. All top ten slots of lenders offering the lowest interest rates are occupied by PSBs, with interest rates ranging from 7.1 percent to 7.7 percent. Next on the list are the Bank of India (7.35 percent) and Bank of Baroda (7.35 percent). UCO Bank is the tenth on the list with 7.7 percent. State Bank of India’s (SBI) interest rate of 7.85 percent per annum does not figure in the list of ten cheapest new car loan interest rate offers.
The loan aggregator portal has considered interest rates on car loans for all listed (BSE) public and private banks for data compilation. Banks for which data is not available on their website, are not considered. Data collected from the respective bank’s website as on November 5, 2020. Banks are listed in ascending order on the basis of interest rate i.e. bank offering the lowest interest rate on the car loan is placed at the top and the highest at the bottom. The lowest interest rate offered by the banks on a loan of Rs 10 lakh is shown in the table (see graphic). EMI is calculated on the basis of the Interest rate mentioned in the table for a Rs 10 lakh loan with a tenure of 7 years (processing and other charges are assumed to be zero for EMI calculation); Interest mentioned in the table is indicative and it may vary depending on bank’s terms and conditions (* minimum interest as per APR in quarter-ended in September 2020).
Mean-while, India on Monday reported 45,903 new cases of the novel coronavirus infection in the last 24 hours. The caseload in the country now stands at 85,53,657. With 490 new deaths, the death toll in the country mounted to 1,26,611. There are a total of 5,09,673 active cases after a decrease of 2,992 cases in the last 24 hours. A total of 79,17,373 have cured from the disease, while 48,405 people have been discharged in the last 24 hours.
