Car Loan Interest Rates 2026 — Compare Banks in India
Compare new car loan interest rates, funding percentage, tenure and processing fees from 10 banks including SBI, HDFC, ICICI, Bank of Baroda and Axis.
Disclaimer: Interest rates, loan amounts, processing fees, and approval are subject to the respective bank's/lender's policies, eligibility criteria, and credit assessment. The information shown is indicative and may vary.
HDFC Bank
HDFC Bank Car Loan
HDFC's ZipDrive car loan approves in just 30 minutes with doorstep documentation for your convenience. Up to 100% on-road financing means zero down payment on eligible models. The fastest and most convenient car loan in India for existing HDFC Bank customers.
SBI Car Loan
SBI Car Loan Car Loan
SBI consistently offers the lowest car loan interest rates in India, starting at just 8.65%. Zero pre-payment penalty means you can close the loan anytime without paying extra charges. The longest tenure option at 84 months keeps EMIs affordable even for expensive car purchases.
ICICI Bank
ICICI Bank Car Loan
ICICI provides instant approval for pre-approved customers with minimal paperwork and fast processing. Used car loans are also available, which many competing banks don't offer at all. The fixed interest rate option gives you complete EMI predictability throughout the entire loan tenure.
Axis Bank
Axis Bank Car Loan
Axis offers quick processing within 48 hours with doorstep document pick-up for added convenience. No prepayment charges after just 1 year of loan tenure gives good flexibility for early repayers. Used car financing is also available for pre-owned vehicles up to 5 years old.
Kotak Mahindra Bank
Kotak Mahindra Bank Car Loan
Kotak's competitive rates starting at 8.75% and a fully digital application process make it a convenient choice. The part-prepayment facility lets you reduce your principal anytime without closing the entire loan. Best for existing Kotak account holders who benefit from faster approvals and better rate negotiations.
Bajaj Finserv
Bajaj Finserv Car Loan
Bajaj Finserv stands out with 100% on-road funding for select popular car models, meaning zero down payment required. Pre-approved offers via the Bajaj app give instant eligibility confirmation. The 72-month maximum tenure is slightly shorter than banks, but rates remain competitive for the market.
Bank of Baroda
Bank of Baroda Car Loan
BoB offers among the lowest car loan rates in India starting at just 8.45%, often beating even SBI on price. Special concessional rates for women borrowers make it the top choice for female car buyers. No prepayment penalty on floating rate loans adds excellent flexibility.
Punjab National Bank
Punjab National Bank Car Loan
PNB's car loan has the lowest processing fees in the market starting at just ₹1,000. Special rates for existing PNB customers and the option to finance two-wheelers as well make it a versatile lending product. Simple documentation and wide branch availability across India ensure easy access.
IndusInd Bank
IndusInd Bank Car Loan
IndusInd finances up to 100% of ex-showroom price with a remarkably quick 4-hour approval process. Top-up loans on existing car loans are available if you need additional funds down the line. Used car financing extends the options for buyers looking at quality pre-owned vehicles.
IDFC First Bank
IDFC First Bank Car Loan
IDFC First offers 100% on-road financing for select models with zero foreclosure charges from day one. The fully digital application process and doorstep document pickup make it completely hassle-free. Competitive rates starting at 8.75% position it well against the larger established banks.
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