Owning a car gives you the freedom to travel whenever you want, wherever you want. For most Indians, getting a car loan is necessary to afford a car. If you are thinking of buying a car and are searching for ‘car loan rates’ or ‘car interest rates’, look no further.
In this article, we will look at the different car loans from various banks and their interest rates.
Your monthly EMI is
per month for 5 months
Total Interest
₹121
Total Amount
₹6,121
Loan Amount
Min ₹5,000
Max ₹6,000,000
Rate of Interest
Min 6%
Max 36%
Loan Tenure
5
months
Min 3 months
Max 72 months
Below is a compilation of car loan interest rates offered by various banks. Most banks provide convenient installment loan options for both new and pre-owned vehicles.
|
Scheme |
Amount |
Interest Rates |
Processing Fee |
|
Digital Car Loan |
Up to ₹50,00,000 |
8.50% to 9.35% |
Loan amount up to ₹10 Lakh - ₹1,500/- + GST Loan amount above ₹10 Lakh - ₹2,000/- + GST |
|
Car Loan |
Up to ₹5 crore |
8.50% - 11.20% |
Loan amount up to ₹10 Lakh - ₹1,500/- + GST Loan amount above ₹10 Lakh - ₹2,000/- + GST |
|
Auto Loan for Pre-owned Car |
₹2 Lakh - ₹50 Lakh |
11.90% - 14.65% |
0.50% (₹2,500 - ₹10,000) |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
SBI New Car Loan Scheme |
As per requirement |
8.70% - 9.85% |
|
|
Loyalty Car Loan Scheme |
As per requirement |
8.70% - 9.80% |
|
|
SBI Green Car Loan (For Electric Cars) |
As per requirement |
8.70% - 9.85% |
|
|
Certified Pre-owned Car Loan Scheme |
₹3 Lakh - ₹100 Lakh |
10.45% - 15.60% |
1.50% of the loan amount + GST |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
Union Miles (New 4-wheeler) |
No upper limit |
7.5% - 9.45% |
₹1,000 + GST |
|
Union Miles (Old 4-wheeler) |
Up to ₹20 Lakh |
11.60% to 11.70% |
|
|
Union Green Miles (New 4-wheeler) |
No upper limit |
7.40% - 9.35% |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
PNB Green Car Loan (New) |
Up to ₹100 Lakh |
8.65% - 10.70% |
0.25% of the loan amount (Minimum - ₹1,000, Maximum - ₹1,500) |
|
PNB Car Loan |
Up to ₹100 Lakh |
8.60% - 10.65% |
|
|
PNB Car Loan (Old Car) |
Up to ₹100 Lakh |
10.45% - 11.55% |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
Cent Vehicle |
Up to ₹200 Lakh |
7.65% - 9.20% |
0.50% (minimum ₹2,000 - maximum ₹10,000) |
|
Cent Go Green Vehicle |
Up to ₹100 Lakh |
7.60% to 9.15% |
0.50% (minimum ₹2,000 - maximum ₹10,000) |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
Star Vehicle Loan for Individuals |
As per requirement |
10.65% - 12.55% |
0.25% of loan amount (Min. ₹2,500, Max. ₹10,000) In the case of e-vehicles, 50% concession in processing fee. |
|
Star Vehicle Loan - Entities Other than Individuals |
No upper limit |
10.65% - 12.55% |
The processing charge is double that of the applicable charges (including maximum ceiling) to individuals |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
Vehicle Loan |
No upper limit |
7.60% - 8.60% |
As applicable |
|
Vehicle Loan (Electric) |
No upper limit |
7.60% - 8.75% |
Nil |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
Canara Vehicle Loan |
No upper limit |
8.75% - 10.85% |
0.25% (minimum Rs1,000 and maximum ₹5,000) |
|
Canara Green Vehicle Loan |
8.60% - 11.45% |
0.25% (minimum Rs1,000 and maximum ₹5,000) |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
New Car Loan |
As per requirement |
8.5% Onwards |
Up to ₹8,500 + GST |
|
Used Car Loan |
As per requirement |
11% Onwards |
2% or ₹20,000, whichever is lower |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
Xpress Car Loan |
Up to ₹10 Crore |
8.15% Onwards |
0.5% (₹3,500 - ₹8,000) |
|
EV Car Loans |
Up to ₹10 Crore |
9% Onwards |
0.5% (₹3,500 - ₹8,000 |
|
Pre-owned Car Loan |
Up to ₹2.5 Crore |
10.49% Onwards |
0.5% (₹3,500 - ₹8,000) |
|
Scheme |
Amount |
Interest Rate |
Processing Fee |
|
New Car Loan |
₹1 Lakh Onwards |
8.95%-11.75% |
₹3,500 - ₹12,000 |
|
Used Car Loan |
₹1 Lakh Onwards |
12.95% -14.55% |
1% or ₹6,000, whichever is higher |
Based on your credit score, income, and other criteria, you can also avail a loan for 100% of the on-road price of your vehicle. New car loan interest rates start as low as 7.5%, offered by the Union Bank of India.
If you are looking to purchase a pre-owned car, you can avail a bank loan for that as well. The only point to consider while purchasing a pre-owned vehicle on a bank loan is that the car should not be more than 3 years old.
Many factors affect auto loan interest rates, and in turn affect the car loan you might take. A few of them are person-specific, and some depend on the economy. A few of them are listed below -
The interest rate offered to you depends on your CIBIL or Experian Score. A higher credit score will ensure that you get loans at lower interest rates.
How much you earn obviously decides the ease with which you can get a loan. Your employment type, either salaried or self-employed, also has a role to play. It also decides the rate at which you avail loans.
Whether you choose a fixed or a floating interest rate will affect your interest rate throughout your tenure. A floating interest rate fluctuates according to the market and may go lower or higher.
The Reserve Bank of India decides repo rates based on inflation or other economic conditions in the country. It also decides the repo rates, which in turn affect the rate at which banks give out loans to their customers.
This is the ratio of your income to other debts or liabilities you may have. If the car loan you are about to take is the only loan under your name, chances are you will get a lower interest rate.
The type of vehicle, i.e., either new or pre-owned, will affect the rate of interest on your vehicle loan. In most cases, new vehicles attract lower interest rates.
The loan amount and the tenure that you opt for will have the final say in deciding your interest rate. In case you choose a shorter tenure, your interest rate will be higher than if you choose a longer tenure. But note that for a longer tenure, you may end up paying more money in interest.
The rates of car loans depend on many factors. Before deciding upon a loan vendor, consider going through multiple bank websites. Often, banks have concessions for women borrowers and also waive off processing fees for certain periods. Knowing about these will help you save money while opting for a vehicle loan.
It is also a great idea to calculate your EMIs in advance, so that you can plan your finances better. You can use Moneyview’s car loan EMI calculator for this purpose.
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Depending on the credit score, income, and type of employment of your co-borrower, your interest rate may be reduced.
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Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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