The Reserve Bank of India (RBI) has enacted a series of repo rate reductions over the past year, resulting in a 1% decrease. This benefits individuals seeking car loans. Banks have also adjusted their car loan interest rates in response. SBI car loans, for example, have become 1% cheaper. It’s important to note that the precise interest rate is affected by factors such as the borrower’s credit history and the loan’s specific type. Borrowers with floating interest rate loans are more likely to directly benefit from the changes.
For a car loan valued at 15 lakh rupees, the monthly savings due to the 1% interest rate reduction can be approximately 770 rupees. On a 12 lakh rupees loan, the monthly savings can be 617 rupees. If the car loan is for 10 lakh rupees, the monthly savings will be around 514 rupees.