**https://www.bankbazaar.com/car-loan/top-10-banks-for-car-loan-in-india.html**
<aside> <img src="/icons/forward_red.svg" alt="/icons/forward_red.svg" width="40px" /> Based on the features provided, the most suitable choice for a car loan would be the State Bank of India (SBI) Car Loan. SBI offers competitive interest rates, financing up to 90% of the on-road price, and an optional life insurance cover. Moreover, SBI provides a variety of car loan schemes to accommodate diverse needs and eligibility criteria.
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When comparing the State Bank of India (SBI) Car Loan with the HDFC Bank Car Loan, there are a few factors that make SBI a better choice for car financing.
Firstly, SBI offers highly competitive interest rates that are lower than HDFC Bank. This means that by choosing SBI, you can potentially save on the overall interest amount paid over the loan tenure, resulting in lower monthly EMIs and reduced financial burden.
Secondly, SBI provides financing of up to 90% of the on-road price of the car, which is higher than what HDFC Bank offers. This allows borrowers to secure a higher loan amount without having to arrange for a large down payment. With HDFC Bank, you may need to contribute a higher amount upfront, which can be a constraint for some borrowers.
Additionally, SBI offers an optional life insurance cover for car loan borrowers. This additional benefit provides a safety net, ensuring that the borrower's family is protected from the burden of the car loan in case of any unfortunate events. HDFC Bank does not provide a similar optional life insurance cover with its car loan.
Lastly, SBI provides a variety of car loan schemes to accommodate diverse needs and eligibility criteria. Whether you are a salaried individual, self-employed professional, or a business owner, SBI has a car loan scheme that can be tailored to suit your specific requirements. This level of flexibility is not seen with HDFC Bank, as their car loan offerings may not be as varied.
Taking these factors into consideration, the State Bank of India (SBI) Car Loan emerges as a better choice compared to the HDFC Bank Car Loan due to its lower interest rates, higher financing options, optional life insurance cover, and the availability of various car loan schemes to meet different customer needs.
| Bank | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| SBI | 8.65% onwards | Rs.1000 onwards |
| HDFC | 8.95% onwards | 0.50% of loan amount (min. Rs. 3,500 max. Rs.8,000) |
| Axis Bank | 9.10% onwards | min. Rs 3,500. max. Rs. 5,000 |
Features:
| Car Loan Scheme | Eligibility | Loan Tenure | Loan Amount |
|---|---|---|---|
| New Car Loan | Age: 21-65 years Minimum annual income: Rs.3 lakh | Up to 7 years | Maximum loan of Rs.10 crore |
Features: