New Delhi, Oct. 11 -- A car loan can help a borrower spread the cost of a vehicle over several years. Still, interest rates and other expenses can affect the overall cost of borrowing. This makes it vital for aspiring car loan applicants to diligently compare lending institutions on aspects such as interest rates, equated monthly instalment (EMI), and processing charges.

Such an approach can go a long way in helping borrowers acknowledge and understand the overall cost before applying. It can also assist in better financial planning and towards devising a strategic approach towards car loan EMI repayments.

As per the data compiled by Paisabazaar, car loan interest rates among 18 lending institutions begin from 7.35% per annum. UCO Bank,...