In today’s fast-paced world, to be on-the-go at all times, you need your own vehicle! And if you are thinking of buying a car and are searching for ‘car loan rates’ or ‘car interest rates’, you won’t have to look further.
Read on to know about the banks that provide the lowest car loan interest rates in India.
Here is a list of a few banks and their car loan interest rates. Most banks offer easy installment loans for both new and used cars.
| Scheme | Amount | Interest Rates | Processing Fee |
| Digital Car Loan | Up to Rs.50,00,000 | 9.40% -10.40% | 0.50% (Rs.2,500 - Rs.10,000) |
| Car Loan | Up to Rs. 5 crore | 9.40% - 12.65% | 0.50% (Rs.2,500 - Rs.10,000) |
| Auto Loan for Pre-owned Car | Rs.2 Lakh - Rs.50 Lakh | 11.90% - 14.65% | 0.50% (Rs.2,500 - Rs.10,000) |
| Scheme | Amount | Interest Rate | Processing Fee |
| SBI New Car Loan Scheme | As per requirement | 8.65% - 9.45% | 0.25% of loan amount + GST |
| Loyalty Car Loan Scheme | As per requirement | 8.80% - 9.40% | 0.25% of loan amount + GST |
| SBI Green Car Loan (For Electric Cars) | As per requirement | 8.60% - 9.30% | 50% of SBI Car Loan |
| Certified Pre-owned Car Loan Scheme | Rs.3 Lakh - Rs.100 Lakh | 11.25% - 14.75% | 1.25% (maximum Rs.10,000) |
| Scheme | Amount | Interest Rate | Processing Fee |
| Union Miles (New 4-wheeler) | No upper limit | 8.70% - 10.40% | Contact the bank for details |
| Union Miles (Old 4-wheeler) | Up to Rs.20 Lakh | 11.40% to 11.50% | Contact the bank for details |
| Union Green Miles (New 4-wheeler) | No upper limit | 9.00% - 10.40% | Contact the bank for details |
| Scheme | Amount | Interest Rate | Processing Fee |
| PNB Green Car Loan (New) | Up to Rs.100 Lakh | 8.90% - 9.70% | Nil |
| PNB Car Loan | Up to Rs.100 Lakh | 8.95% - 9.75% | Nil |
| Scheme | Amount | Interest Rate | Processing Fee |
| Cent Vahini (for women borrowers) | According to requirement | 8.75% | Contact the bank for details |
| Cent Vehicle |
- Up to Rs.10 Lakh for 2-wheeler |
9.25% - 10.15% | 0.50% (minimum Rs.2,000 - maximum Rs.10,000) |
| Scheme | Amount | Interest Rate | Processing Fee |
| Star Vehicle Loan for Individuals | As per requirement | 8.25% - 9.95% | Nil |
| Star Vehicle Loan - Entities Other than Individuals | No upper limit | 8.25% - 8.45% | Nil |
| Star Vehicle Loan - Doctor Plus | No upper limit | 8.25% - 8.45% | Nil |
| Scheme | Amount | Interest Rate | Processing Fee |
| Vehicle Loan | No upper limit | 8.85% - 10.05% | Nil |
| Scheme | Amount | Interest Rate | Processing Fee |
| Canara Vehicle & Green Vehicle Loan | No upper limit | 9.15% - 11.95% | 0.25% (minimum Rs1,000 and maximum Rs.5,000) |
| Scheme | Amount | Interest Rate | Processing Fee |
| New Car Loan | As per requirement | 8.75% Onwards | Rs.5,000 - Rs.9,000 |
| Used Car Loan | As per requirement | 11.25% - 18.00% | 2% or Rs.20,000, whoever is lower |
| Scheme | Amount | Interest Rate | Processing Fee |
| Xpress Car Loan | Up to Rs.10 Crore | 8.75% Onwards | 0.5% (Rs.3,500 - Rs.8,000) |
| EV Car Loans | Up to Rs.10 Crore | 8.75% Onwards | 0.5% (Rs.3,500 - Rs.8,000 |
| Pre-owned Car Loan | Up to Rs.2.5 Crore | 13.75% Onwards | 0.5% (Rs.3,500 - Rs.8,000) |
| Scheme | Amount | Interest Rate | Processing Fee |
| New Car Loan | Rs.1 Lakh Onwards | 8.55% - 13.05% | Rs.3,500 - Rs.5,500 |
| Used Car Loan | Rs.1 Lakh Onwards | 13.45% - 17.00% | 1% or Rs.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 8.25%, offered by the 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.
There are many factors which affect auto loan interest rates, and in turn affect the car loan you might take. 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 on 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 the inflation or other economic conditions in the country. It also decides the repo rates, which in turn affects 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 of 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 as 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. Having knowledge 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.
There are many ways to reduce your car loan EMI. Some of the methods are-
Currently, Bank of India offers the lowest auto loan interest rates, starting from just 8.25% per annum.
No, car loans usually do not have a moratorium period.
Car loans may cover up to 100% of the vehicle price. But this depends on the loan amount, vendor, your credit score, and many other factors.
Depending on the credit score, income, and type of employment of your co-borrower, your interest rate may reduce.
In most cases, the rate of interest is lower on new cars.
Thank you. Your feedback is important to us.
