The RBI’s monetary policy adjustments, specifically the 1% reduction in the repo rate over the past year, have created more favorable conditions for car loan borrowers. This is further reflected in the interest rate cuts by several banks. Specifically, SBI has decreased its car loan interest rates by 1%. Keep in mind that the interest rate depends on factors such as credit score and the type of loan. Those with floating interest rates will see the most direct savings.
If you take a car loan of 15 lakh rupees, the decrease in interest rate leads to monthly savings of 770 rupees. For a 12 lakh loan, the savings amount to 617 rupees monthly, and for a 10 lakh loan, borrowers can save approximately 514 rupees each month.