Car loan interest rates by bank
The rates, fees and foreclosure charges for new car loans of 9 banks, from the site of each bank. Verification date: 27 Oct 2026. Each bank page has an EMI calculator with down payment, APR and foreclosure charges.
Car loan interest rates compared
"Rate" is the range on the bank page. "Average charged" is the average rate that the bank charged on new loans in the quarter, if the bank shows this rate.
| Lender | Rate | Average charged | Processing fee | Close early |
|---|---|---|---|---|
| State Bank of India | 8.55%–9.50% fixed | 8.90% Jul–Sep 2026 | ₹500–₹2,000 flat | 2% in first 2 years, then nil; part-payment nil |
| HDFC Bank | 7.60%–14.00% fixed | 8.63% Apr–Jun 2026 | 0.5% (₹3,500–₹8,000) + ₹700 | 5% (any time) |
| ICICI Bank | 8.00%–11.20% fixed | 8.92% Jul–Sep 2026 | Up to ₹8,500 | 3% / 2%; nil after 24 months |
| Axis Bank | 8.80%–11.70% fixed | Not published | Up to 2% + ₹700 | 5% (any time) |
| Punjab National Bank | 7.90%–10.95% floating | Not published | 0.25% (₹1,000–₹1,500); waived to 31 Dec | Nil (floating) |
| Bank of Baroda | 7.85%–11.30% floating | Not published | ₹1,500 / ₹2,000 flat | Nil (floating) |
| Canara Bank | 7.75%–10.95% floating | Not published | 0.25% (₹1,000–₹5,000); waived to 31 Dec | Nil |
| Union Bank of India | 7.85%–10.25% floating | Not published | ₹1,000 flat | Nil (own funds) |
| Bank of India | 7.85%–8.95% floating | Not published | 0.25% (₹2,500–₹10,000) | Nil (floating, RBI rule) |
Fixed rate: the rate stays the same for the full loan tenure, and the bank can apply a foreclosure charge. Floating rate: the rate moves with the RBI repo rate, and there is no charge to prepay.
Car loan interest rate and EMI by bank
Frequently asked questions
Which bank has the lowest car loan interest rate?
On the pages of the banks, Canara Bank has the lowest rate on its rate card, 7.75%. This rate is for the borrowers with the lowest risk. HDFC Bank and ICICI Bank show a different rate: the lowest rate that they charged, 7.60% and 8.00%. Three banks show their average rate on new car loans: SBI 8.90% (Jul–Sep 2026); HDFC Bank 8.63% (Apr–Jun 2026); ICICI Bank 8.92% (Jul–Sep 2026).
Is a fixed or floating car loan better?
A floating rate moves with the RBI repo rate. RBI does not let banks charge individuals to prepay a floating-rate loan. A fixed rate stays the same for the full loan tenure, but the bank can apply a foreclosure charge. HDFC Bank and Axis Bank charge 5%. If you plan to prepay, compare the foreclosure charges, not only the rates.
How much down payment do I need for a car loan?
It is different for each bank. SBI and HDFC Bank lend up to 100% of the on-road price for some cars. Bank of Baroda, Canara Bank and Union Bank lend up to 90%. PNB keeps a margin of 15% (10% at dealers that have an agreement with PNB). A larger down payment gives a smaller loan and less interest.
What is the EMI for an ₹8 lakh car loan?
At 8.50% for 5 years, the EMI is ₹16,413. At 9.50%, it is ₹16,801. Each bank page has the EMI table at that bank's rate.