Get your research right before buying a car

Guwahati: Got a new job? Planning to buy a car on loan? But how does one decide which bank to approach for a suitable loan?
For financing a car, the usual process followed by a middle-class employed person is to take a loan. But just taking loans is not enough. One must have knowledge of loans offered by various banks. 

According to bankbazaar.com, several banks offer car loans. Among these, the State Bank of India offers loans at the lowest interest with 8.60% per annum onwards. 

Other banks offering loans are Bank of Baroda with an interest rate of 8.70% per annum onwards, Union Bank of India with 8.8% onwards, HDFC Bank with 8.85% onwards and Federal Bank with 11% per annum onwards. The other important banks offering car loans are Axis Bank, Canara Bank, IDBI Bank, Punjab National Bank and Karnataka Bank. These banks offer loans with an interest above 8%.

As per the latest RBI data, the total vehicle loan outstanding climbed from Rs 3.65 lakh crore in May 2021 to Rs 4.16 lakh crore in May 2022, and further to Rs 5.09 lakh crore as of May 19, 2023.

Now, if one is wondering which car can be affordable as per the income bracket, then there is a list of low-budget cars. 

Among the popular low-budget cars are Renault Kwid at Rs 4.69 lakh, Datsun at Rs 3.80 lakh, Maruti Suzuki Wagon R at Rs 5.53 lakh and Tata Tiago at Rs 5.60 lakh. 

These days, some affordable electric vehicles are also coming on the roads and those are under Rs 5 lakh.

In the area of affordable cars, Tata Nano has created history in the country. But it could not become popular due to various technical problems and poor ride quality.

So, if you are contemplating buying a four-wheeler, it is advisable to do a thorough research.

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