Car financing perhaps occupies the second biggest pie in the portfolio of NBFCs (non-banking finance companies). Data of FY21 and FY22 by BCG (Boston Consulting Group) and IDBI Research said that NBFCs had 47% share of the car loan market while 53% was held by banks.
A number of prominent NBFCs offer car loans. The growth in sales of passenger vehicles has much to do with easy financing. Let’s find out what is the rate of interest, processing charges and other conditions they offer with such loans.
Bajaj Finserv car loan rates
Bajaj Finserv, one of the most high-profile NBFCs that offer retail loans, charges interest rates between 7.5% and 14% per annum on vehicle loans. Processing fees can rise to a maximum of 2.95% on the loan amount. The documentation charges inclusive of taxes can be a maximum of Rs 2,360. The company levies pre-payment charges at 4.72% on the outstanding amount paid.
Tata Capital car loan rates
Tata Capital offers a maximum amount of Rs 50 lakh as loan to fund a new passenger car. The maximum repayment tenure of the loan is 84 months which is one of the highest in the market. Loans can be provided to cover a maximum of 100% of the cost of the car. The applicant, if salaried, must be between 21 and 60 years and should have a minimum annual income of Rs 3 lakh. If self-employed the age should be between 21 and 65 years.
Mahindra Finance car loan rates
Mahindra Finance offers full value of a car as loan – 100% of ex-showroom value. “The interest rates offered are reasonable and are based on the location of the customer, tenure of loan and customer profile,” says the company on its website. It does not require any collateral. The repayment tenure is a maximum of 5 years.
Sundaram Finance car loan rates
The rate of interest on Sundaram Finance car loans begins from about 8.75%. Like any other lender the rate charged from a customer depends substantially of his/her credit score. It is based on a model of monthly reducing balance. The processing fee is around Rs 3,500. A maximum of 95% of the value of the car is provided as loan. The repayment tenure stretches from a minimum of 12 months to a maximum period of 60 months.
Non-banking finance companies are extremely active in financing passenger cars the market for which is growing fast in India. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
