Bank of India car loan interest rate and EMI calculator
Bank of India car loans are at 7.85% to 8.95% a year (floating rate). On its site, Bank of India does not show the average rate that it charges. The calculator starts at 8.40%, the rate for a borrower with a CIBIL score of 760–799. The calculator also shows the processing fee, the annual percentage rate (APR) and the foreclosure charge. Verification date: 27 Oct 2026.
Bank of India car loan interest rate and charges
| Interest rate | 7.85% to 8.95% a year (floating RBLR − 0.50% to + 0.60%, by CIBIL score; RBLR 8.35% after RBI's repo rise of 7 Oct 2026) |
| Average rate charged | Not published by the lender |
| Processing fee | 0.25% of the loan, minimum ₹2,500, maximum ₹10,000 (half for electric cars) + GST |
| Close early / part-payment | Bank of India's pages that we have do not give a prepayment charge. On a floating-rate loan to an individual, RBI does not let banks charge for prepayment (from 1 Jan 2026). |
Bank of India car loan rate by borrower
| Borrower | Spread | Rate now |
|---|---|---|
| CIBIL 840 or more | RBLR − 0.50% | 7.85% |
| 825–839 (or AAA/AA rated) | RBLR − 0.35% | 8.00% |
| 800–824 (or A rated) | RBLR − 0.35% | 8.00% |
| 760–799 (or BBB rated) | RBLR + 0.05% | 8.40% |
| 725–759 | RBLR + 0.30% | 8.65% |
| 700–724 | RBLR + 0.60% | 8.95% |
| No credit history (score −1 or 0) | RBLR + 0.45% | 8.80% |
The rates are the same for salaried and self-employed borrowers. How we got "Rate now": the newest Bank of India rate sheet that we have is from 1 Jan 2026 (RBLR 8.10%). We added the RBI repo increase of 0.25% from 7 Oct 2026 (RBLR 8.35%). This agrees with the lowest rate of 7.85% on the Bank of India vehicle loan page (last changed on 26 Oct 2026). Less than 700: 10.25%, only for a loan that the bank examines again. Fixed-rate alternative: the rate stays the same for 5 years. The newest fixed-rate sheet that we have is from 1 Jul 2025, and thus you must speak to the branch.
Bank of India car loan EMI table
EMI at 8.40% (the rate for a borrower with a CIBIL score of 760–799). The loan is the on-road price less your down payment.
| Loan | 3 yrs | 4 yrs | 5 yrs | 6 yrs | 7 yrs |
|---|---|---|---|---|---|
| ₹3,00,000 | ₹9,456 | ₹7,380 | ₹6,141 | ₹5,319 | ₹4,736 |
| ₹5,00,000 | ₹15,761 | ₹12,301 | ₹10,234 | ₹8,865 | ₹7,893 |
| ₹7,00,000 | ₹22,065 | ₹17,221 | ₹14,328 | ₹12,410 | ₹11,050 |
| ₹8,00,000 | ₹25,217 | ₹19,681 | ₹16,375 | ₹14,183 | ₹12,629 |
| ₹10,00,000 | ₹31,521 | ₹24,601 | ₹20,468 | ₹17,729 | ₹15,786 |
| ₹12,00,000 | ₹37,825 | ₹29,521 | ₹24,562 | ₹21,275 | ₹18,943 |
| ₹15,00,000 | ₹47,282 | ₹36,902 | ₹30,703 | ₹26,594 | ₹23,679 |
| ₹20,00,000 | ₹63,042 | ₹49,202 | ₹40,937 | ₹35,458 | ₹31,572 |
Cost of the rate on ₹8 lakh for 5 years
APR includes the highest processing fee with GST. It shows the full cost of the loan for each year.
| Rate | EMI | Total interest | APR |
|---|---|---|---|
| Lowest rate (7.85%) | ₹16,164 | ₹1,69,825 | 8.01% |
| CIBIL 760–799 (8.40%) | ₹16,375 | ₹1,82,482 | 8.56% |
| Highest rate (8.95%) | ₹16,587 | ₹1,95,237 | 9.11% |
Foreclosure: cost to close the loan
5-year loan at 8.40%. The charge is on the balance that you repay, and you also pay GST.
| Loan | EMIs paid | Balance | Charge |
|---|---|---|---|
| ₹5,00,000 | 6 | ₹4,58,881 | Nil |
| ₹5,00,000 | 18 | ₹3,71,296 | Nil |
| ₹5,00,000 | 30 | ₹2,76,064 | Nil |
| ₹10,00,000 | 6 | ₹9,17,762 | Nil |
| ₹10,00,000 | 18 | ₹7,42,592 | Nil |
| ₹10,00,000 | 30 | ₹5,52,127 | Nil |
Bank of India and other banks
The data comes from the site of each bank. If a bank shows the average rate that it charged, that rate is the most accurate guide to the rate that a usual borrower gets.
| 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) |
Frequently asked questions
What is the Bank of India car loan interest rate?
Bank of India car loans are at 7.85% to 8.95% a year (floating rate: RBLR − 0.50% to + 0.60%, from the CIBIL score). RBLR is 8.35% after the RBI repo increase of 7 Oct 2026. On its site, Bank of India does not show the average rate that it charges. The calculator uses 8.40%, the rate for a borrower with a CIBIL score of 760–799. The bank sets your rate from your credit score, income, the car and the tenure.
What is the EMI for an ₹8 lakh Bank of India car loan?
At 8.40%, the EMI is ₹16,375 for 5 years and ₹12,629 for 7 years. At 7.85%, it is ₹16,164 for 5 years.
What is the processing fee for a Bank of India car loan?
0.25% of the loan, minimum ₹2,500, maximum ₹10,000 (half for electric cars). You also pay GST at 18%. On an ₹8 lakh loan, the highest fee with GST is ₹2,950.
Can I prepay a Bank of India car loan?
Yes. The Bank of India car loan has a floating rate. RBI does not let banks charge individuals to prepay a floating-rate loan (from 1 January 2026). The Bank of India pages that we have do not give a charge for a fixed-rate loan. Thus, speak to the branch.
Is the Bank of India car loan rate fixed or floating?
Bank of India gives floating-rate car loans that follow the repo rate. Thus, your rate changes when RBI changes the repo rate. It also has a fixed-rate alternative at a higher rate.
Sources
- Bank of India: Star Vehicle Loan for Individuals – rate of interest and charges (page last changed on 26.10.2026). Read on 27 Oct 2026.
- Bank of India: Retail loans – floating rate of interest w.e.f. 01.01.2026 (spreads above RBLR). Read on 27 Oct 2026.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Read on 27 Oct 2026.
Banks frequently change these rates. We examine them each month. Your sanction letter and Key Facts Statement show the rate and charges that you pay. Use the KFS / APR checker to examine them.