Loans
Car Loan Interest Rates — 30+ Banks & NBFCs
Indicative starting rates for new and used car loans in India (May 2026). Your actual rate depends on your CIBIL score, loan amount, tenure, and the lender's current scheme — always get a formal quote before applying.
← Car Loan EMI Calculator Important: Rates shown are indicative starting rates scraped from
official bank websites and aggregators. The same bank may offer a significantly different
rate to you based on your CIBIL score, loan amount, income, car model, and tenure.
Always contact the lender directly for a personalised quote.
| Institution | Type | New Car Rate | Used Car Rate | Max LTV (New) | Max Tenure (New) | Processing Fee | Source |
|---|---|---|---|---|---|---|---|
| State Bank of India SBI CarLoan — CIBIL ≥ 750 for best rate | PSU | 8.70% – 9.65% Floating | 11.00% – 14.00% | 90% | 7 yr | 0.25% (min ₹1,000, max ₹7,500) | Official ↗ |
| Bank of Baroda | PSU | 8.50% – 10.85% Both | 11.05% – 14.05% | 90% | 7 yr | 0.50% (min ₹2,500, max ₹10,000) | Official ↗ |
| Punjab National Bank | PSU | 8.60% – 9.45% Both | 12.00% – 15.00% | 90% | 7 yr | 0.25% (min ₹1,000, max ₹6,000) | Official ↗ |
| Bank of India | PSU | 7.60% – 9.35% Floating | 10.00% – 13.00% | 90% | 7 yr | 0.25% (min ₹1,500) | Official ↗ |
| Canara Bank | PSU | 7.45% – 9.00% Floating | 10.50% – 12.00% | 90% | 7 yr | 0.25% (max ₹5,000) | Official ↗ |
| Union Bank of India | PSU | 7.40% – 8.95% Floating | 10.00% – 12.50% | 90% | 7 yr | Nil – 0.50% (max ₹7,500) | Official ↗ |
| UCO Bank | PSU | 7.45% – 9.10% Floating | 10.50% – 13.00% | 85% | 7 yr | 0.50% (min ₹1,000, max ₹7,500) | Official ↗ |
| Indian Bank | PSU | 7.50% – 9.00% Floating | 10.00% – 12.00% | 90% | 7 yr | 0.30% (min ₹1,000, max ₹10,000) | Official ↗ |
| Indian Overseas Bank | PSU | 7.55% – 9.15% Floating | 10.50% – 13.00% | 85% | 7 yr | 0.25% (min ₹500, max ₹7,500) | Official ↗ |
| Bank of Maharashtra | PSU | 7.45% – 9.00% Floating | 10.00% – 12.00% | 85% | 7 yr | 0.25% (max ₹5,000) | Official ↗ |
| Central Bank of India | PSU | 7.60% – 9.00% Floating | 10.50% – 12.50% | 85% | 7 yr | 0.25% (max ₹5,000) | Official ↗ |
| IDBI Bank | PSU | 7.75% – 8.65% Both | 11.00% – 13.00% | 90% | 7 yr | 0.50% (min ₹2,500, max ₹7,500) | Official ↗ |
| HDFC Bank HDFC SmartEMI offers fixed rates; special discounts for existing customers | Private | 8.15% – 14.00% Fixed | 13.75% – 16.00% | 90% | 7 yr | 0.50% (min ₹3,500, max ₹8,000) | Official ↗ |
| ICICI Bank | Private | 8.50% – 14.00% Fixed | 15.00% – 18.00% | 90% | 7 yr | Up to 1% (min ₹3,500) | Official ↗ |
| Axis Bank | Private | 8.95% – 15.00% Fixed | 14.00% – 18.00% | 90% | 7 yr | 0.50% (min ₹3,500, max ₹8,000) | Official ↗ |
| Federal Bank | Private | 7.60% – 9.50% Floating | 11.00% – 13.00% | 85% | 7 yr | 0.25% (min ₹500, max ₹5,000) | Official ↗ |
| IndusInd Bank | Private | 8.00% – 17.00% Fixed | 12.00% – 18.00% | 90% | 7 yr | 0.50% – 1.00% (min ₹3,000) | Official ↗ |
| Kotak Mahindra Bank | Private | 8.75% – 14.00% Fixed | 12.00% – 17.00% | 90% | 7 yr | 0.50% (min ₹3,500) | Official ↗ |
| Karnataka Bank | Private | 8.00% – 10.00% Floating | 11.00% – 13.00% | 85% | 7 yr | 0.35% (min ₹750, max ₹7,500) | Official ↗ |
| Tamilnad Mercantile Bank | Private | 9.50% – 11.00% Floating | 11.50% – 13.50% | 85% | 7 yr | 0.25% (max ₹5,000) | Official ↗ |
| Karur Vysya Bank | Private | 9.00% – 11.00% Floating | 11.00% – 14.00% | 85% | 7 yr | 0.25% (max ₹5,000) | Official ↗ |
| Bandhan Bank | Private | 9.47% – 13.00% Fixed | 12.00% – 16.00% | 85% | 7 yr | Up to 1.00% | Official ↗ |
| IDFC First Bank | Private | 9.99% – 16.00% Fixed | 13.00% – 18.00% | 90% | 7 yr | Up to 2.00% | Official ↗ |
| Yes Bank | Private | 10.00% – 15.00% Fixed | 12.00% – 17.00% | 85% | 7 yr | 0.50% – 1.50% | Official ↗ |
| Equitas Small Finance Bank | SFB | 9.00% – 14.00% Fixed | 11.00% – 16.00% | 85% | 7 yr | 1.00% – 2.00% | Official ↗ |
| AU Small Finance Bank | SFB | 10.50% – 15.00% Fixed | 12.00% – 17.00% | 85% | 7 yr | 1.00% – 2.50% | Official ↗ |
| Mahindra Finance Strong rural and semi-urban network; flexible credit assessment | NBFC | 8.50% – 10.00% Fixed | 10.00% – 14.00% | 90% | 7 yr | 1.00% – 2.00% | Official ↗ |
| Tata Capital | NBFC | 8.75% – 12.00% Fixed | 11.00% – 15.00% | 90% | 7 yr | 0.50% – 1.50% | Official ↗ |
| Cholamandalam Investment & Finance One of the largest vehicle finance companies in India | NBFC | 9.00% – 12.00% Fixed | 10.50% – 14.00% | 90% | 7 yr | 1.00% – 2.00% | Official ↗ |
| HDB Financial Services HDFC Bank subsidiary; serves customers with thinner credit profiles | NBFC | 10.00% – 15.00% Fixed | 12.00% – 18.00% | 85% | 7 yr | 1.00% – 3.00% | Official ↗ |
| Shriram Finance Specialises in used/commercial vehicles; strong dealer network | NBFC | 10.00% – 15.00% Fixed | 10.00% – 16.00% | 85% | 7 yr | 1.50% – 3.00% | Official ↗ |
| Bajaj Finance | NBFC | 9.80% – 15.00% Fixed | 12.00% – 18.00% | 90% | 7 yr | Up to 2.00% | Official ↗ |
Key observations
- PSU banks are cheapest for new cars — Union Bank of India starts at 7.40%, Canara and Bank of Maharashtra at 7.45%. But eligibility requirements are stricter (CIBIL ≥ 750 for best rates).
- Used car rates are 1.5–3% higher than new car rates at the same bank. SBI's new car starts at 8.70%, used car at 11.00%.
- NBFCs serve customers with lower CIBIL scores but charge 10–18% for used cars. They're faster to approve and have wider dealer coverage.
- Fixed vs floating: PSU banks generally offer floating rates (linked to MCLR or RLLR); private banks and NBFCs mostly offer fixed rates for car loans.
- Processing fee matters on large loans. A 1% fee on a ₹10L loan is ₹10,000 — compare this alongside the interest rate.
Ready to calculate your EMI?
Use the car loan EMI calculator to compute your monthly payment, on-road price breakdown, and prepayment savings — with these rates.
Last updated · site changelog