Compare SBI vs PNB Auto Loan – Which Bank offers the cheapest auto loan: In its Monetary Policy Committee (MPC) meeting in June, the Reserve Bank of India (RBI) raised the repo rate to 4.9%. Existing and future borrowers of retail loans with floating interest rates like home loans have been impacted by the recent hike in repo rates.
On the other hand, interest rates for auto loans can be either fixed or variable. The interest rate of a fixed loan is fixed for the duration of the loan.
With a floating rate, the lending rate varies in response to changes in the base rate or the lender’s marginal cost of lending rate (MCLR).
Here’s a look at the auto loan interest rates offered by the State Bank of India (SBI), and Punjab National Bank (PNB).
Compare SBI vs PNB Auto Loan: Which Bank offers the cheapest auto loan
State Bank of India auto loan interest rate
State Bank of India finances up to 90% of the ‘on-road price’, the bank offers a loan tenure of 7 years for the purchase of new passenger cars, multi-utility vehicles (MUVs), and SUVs.
SBI Auto Loan is linked to a one-year Marginal Cost of Funds Based Lending Rate (MCLR) which has now been revised to 7.40 percent.
The loan interest rate can vary from 7.65% to 8.35% for SBI Car Loan, NRI Car Loan, and Assured Car Loan schemes. It varies from 7.60% to 8.30% under the loyalty car loan scheme. The interest rate for a tenure of 3-5 years for a CIC score above 757 would be 0.25 + 7.40 percent = 7.65 percent.
Punjab National Bank auto loan interest rate
Punjab National Bank auto loans are linked to Repo Linked Lending Rate (RLLR) (RLLR + BSP). Note that the BSP is the added risk premium based on the subscriber risk.
Both existing and new customers will see an increase in RLLR from 6.90 percent to 7.40 per cent (repo rate (4.90 percent) + mark-up (2.50 percent)).