Each lender has its own criteria for determining car loan interest rates and may have differing starting and maximum rates. Whatever car loan interest rate you qualify for, itll be represented in form of APR (Annual Percentage Rate) which may include the cost of both interest and fees.

You can choose from a range of fixed and floating interest rates. The principal and interest components will respectively increase and decrease proportionately for the entire loan tenure.

Generally, your credit score will make the biggest impact on the rates offered. The higher your credit score, the lower the interest rate you'll receive. You can approach major private banks such as HDFC Bank for competitive interest rate Having a higher credit score may also allow you to take out a larger loan or access a broader selection of repayment terms. Choosing a longer repayment term will lower your monthly payments, although you'll also pay more in interest overall.