Car loan interest rates in India depends on various factors. The key features that determine you car loan interest rates are
- Model and make of the car you want to buy
- Your income status
- loan amount needed by you
- tenure of repayment
- Either you provide a collateral or not
- Your relationship with the bank you intend to take your loan from
Depending on the bank you are taking car loan from and the car loan related factors mentioned above, the average interest rates (reducing) may vary from 11% to 16.25%.
Processing fees for a car loan vary from 0% to 4% of the loan amount.
If you want to pay the car loan amount before agreed time period then there will be a pre-payment penalty applied by the bank. The pre-closure/prepayment/foreclosure charges are 3% to 6% of pre-closed amount.
The car loan amount can be up to 100% of the market value of the car.