Lowest Car Loan Interest Rates (October 2026)
Which bank's car loan starts at the lowest rate? Every bank's published starting rate, ranked lowest first, with the EMI on your loan amount. Your own rate depends on your credit score, income and employer.
On this page
Calculator and results
The lowest car loan starting rate is 7.7% p.a. at Bank of Maharashtra, as of 21 October 2026, from each bank’s own website.
₹
Lowest starting rate
Bank of Maharashtra 7.7%
Highest starting rate
Suryoday SFB 12%
| Type | Processing fee | Credit rating | Calculator link | ||||
|---|---|---|---|---|---|---|---|
| Bank of Maharashtra | Public sector bank | 7.7%up to 12% | ₹16,106at the starting rate | No Processing Fee for EVs | [ICRA]AA+ | 21 Oct 2026 | Calculate → |
| UCO Bank | Public sector bank | 7.7%up to 10.25% | ₹16,106at the starting rate | Not published | IND AA | 21 Oct 2026 | Calculate → |
| Canara Bank | Public sector bank | 7.8%up to 10.95% | ₹16,145at the starting rate | 0.25% on the loan amount with a minimum of Rs.1000/-+GST and maximum… Full feeShow less0.25% on the loan amount with a minimum of Rs.1000/-+GST and maximum of Rs.5000/-+GST. Bank is celebrating Retail Loan Festival and waiver of 100% processing… Full terms on the bank's page | [ICRA]AAA | 21 Oct 2026 | Calculate → |
| Bank of Baroda | Public sector bank | 7.85%up to 11.55% | ₹16,164at the starting rate | Loan amount upto Rs 10 lacs – Rs. 1500/- + GST; above Rs 10 lacs… Full feeShow lessLoan amount upto Rs 10 lacs – Rs. 1500/- + GST; above Rs 10 lacs – Rs. 2000/- + GST; Rs. 500/- + GST for State/Central/PSU employees | CARE AAA | 21 Oct 2026 | Calculate → |
| Indian Overseas Bank | Public sector bank | 7.85%up to 8.85% | ₹16,164at the starting rate | Full Waiver of Processing Charges on Vehicle Loans | IND AA+ | 21 Oct 2026 | Calculate → |
| Punjab & Sind Bank | Public sector bank | 7.85%up to 14.3% | ₹16,164at the starting rate | Not published | IND AA | 21 Oct 2026 | Calculate → |
| Union Bank of India | Public sector bank | 7.85%up to 10.25% | ₹16,164at the starting rate | Not published | CARE AAA | 21 Oct 2026 | Calculate → |
| Federal Bank | Private bank | 7.85%up to 9% | ₹16,164at the starting rate | New Car Loans: Upto Rs.5Lakh -Rs.2000/-; Above Rs.5.00L-Rs.4500/- | CARE AA+ | 21 Oct 2026 | Calculate → |
| Central Bank of India | Public sector bank | 7.9%up to 9.55% | ₹16,183at the starting rate | Not published | Crisil AA+ | 21 Oct 2026 | Calculate → |
| Punjab National Bank | Public sector bank | 7.9%up to 9.95% | ₹16,183at the starting rate | 0.25% of Loan amount (Minimum – Rs. 1000/- Maximum Rs. 1500/-) (Full… Full feeShow less0.25% of Loan amount (Minimum – Rs. 1000/- Maximum Rs. 1500/-) (Full waiver during PNB Utsav Festivities 2026, 01.10.2026 to 31.12.2026) | Crisil AAA | 21 Oct 2026 | Calculate → |
| Karnataka Bank | Private bank | 8.16%up to 11.66% | ₹16,282at the starting rate | Not published | CARE A+ | 21 Oct 2026 | Calculate → |
| ICICI BankD-SIB | Private bank | 8.4% | ₹16,375at the starting rate | Up to ₹8,500 + applicable GST (new car) | Crisil AAA | 21 Oct 2026 | Calculate → |
| YES BANK Rates actually charged in April–June 2026, from the bank's disclosure; not a card rate | Private bank | 8.51%up to 11.51%Rates actually charged (April–June 2026), not a starting rate | ₹16,417at the lowest rate charged | For New Car - Upto 2% of Loan Amount subject to minimum of Rs 2499/-. | Crisil AA+ | 21 Oct 2026 | Calculate → |
| State Bank of IndiaD-SIB | Public sector bank | 8.55%up to 9.5% | ₹16,433at the starting rate | SBI Car Loan (new vehicle), salaried: Up to Rs 5 Lakh Rs 500 + GST… Full feeShow lessSBI Car Loan (new vehicle), salaried: Up to Rs 5 Lakh Rs 500 + GST; >5 to 10 Lakh Rs 1000 + GST; above Rs 10 Lakh Rs 1500 + GST | [ICRA]AAA | 21 Oct 2026 | Calculate → |
| Dhanlaxmi Bank | Private bank | 8.7%up to 13.85% | ₹16,490at the starting rate | Car Loan/Used Car Loan 0.25%, subject to min Rs.2000 and maximum of… Full feeShow lessCar Loan/Used Car Loan 0.25%, subject to min Rs.2000 and maximum of Rs.12500/- | [ICRA]BBB- | 21 Oct 2026 | Calculate → |
| Axis Bank | Private bank | 8.8%up to 11.7% | ₹16,529at the starting rate | Upto 2% of the loan amount + GST as applicable | IND AAA | 21 Oct 2026 | Calculate → |
| CSB Bank Rates actually charged in the period on the bank's page, from the bank's disclosure; not a card rate | Private bank | 8.9%up to 11%Rates actually charged (the period on the bank's page), not a starting rate | ₹16,568at the lowest rate charged | FEES NEW CARS: Rs. 3,000 - Rs. 5,000 + Taxes (documentation Rs. 500 +… Full feeShow lessFEES NEW CARS: Rs. 3,000 - Rs. 5,000 + Taxes (documentation Rs. 500 + Taxes) | IND A | 21 Oct 2026 | Calculate → |
| IDFC FIRST Bank | Private bank | 8.99% | ₹16,603at the starting rate | Up to 5% of the Loan Amount (Inclusive of GST) | Crisil AA+ | 21 Oct 2026 | Calculate → |
| HDFC BankD-SIB | Private bank | 9% | ₹16,607at the starting rate | Up to 0.5% of the loan amount subject to a minimum of ₹3,500 and a… Full feeShow lessUp to 0.5% of the loan amount subject to a minimum of ₹3,500 and a maximum of ₹8,000. | CARE AAA | 21 Oct 2026 | Calculate → |
| Equitas Small Finance Bank | Small finance bank | 9%up to 25% | ₹16,607at the starting rate | Processing Charges# [Range] 1% to 2.25% + GST | CARE AA- | 21 Oct 2026 | Calculate → |
| Tamilnad Mercantile Bank | Private bank | 9.75%up to 11.4% | ₹16,899at the starting rate | Proposal Processing Charges: Others 1% of the loan amount* (+ GST) | IND AA- | 21 Oct 2026 | Calculate → |
| DCB Bank | Private bank | 10.6%up to 18% | ₹17,235at the starting rate | Upto 2% of the loan amount, subject to a minimum of ₹ 5000/- | CARE AA- | 21 Oct 2026 | Calculate → |
| Suryoday Small Finance Bank | Small finance bank | 12% | ₹17,796at the starting rate | Up to 1% plus GST for New Car & Up to 1.25 % Plus GST for Used Car. | [ICRA]A | 21 Oct 2026 | Calculate → |
- Bank of Maharashtra
- Type
- Public sector bank
- Starting from
- 7.7%up to 12%
- EMI on ₹8,00,000
- ₹16,106at the starting rate
- Processing fee
- No Processing Fee for EVs
- Credit rating
- [ICRA]AA+
/StableICRA, 21 Jul 2026 - Verified
- 21 Oct 2026
- UCO Bank
- Type
- Public sector bank
- Starting from
- 7.7%up to 10.25%
- EMI on ₹8,00,000
- ₹16,106at the starting rate
- Processing fee
- Not published
- Credit rating
- IND AA
/StableIndia Ratings, 9 Oct 2026 - Verified
- 21 Oct 2026
- Canara Bank
- Type
- Public sector bank
- Starting from
- 7.8%up to 10.95%
- EMI on ₹8,00,000
- ₹16,145at the starting rate
- Processing fee
0.25% on the loan amount with a minimum of Rs.1000/-+GST and maximum… Full feeShow less
0.25% on the loan amount with a minimum of Rs.1000/-+GST and maximum of Rs.5000/-+GST. Bank is celebrating Retail Loan Festival and waiver of 100% processing… Full terms on the bank's page- Credit rating
- [ICRA]AAA
/StableICRA, 8 Sept 2026 - Verified
- 21 Oct 2026
- Bank of Baroda
- Type
- Public sector bank
- Starting from
- 7.85%up to 11.55%
- EMI on ₹8,00,000
- ₹16,164at the starting rate
- Processing fee
Loan amount upto Rs 10 lacs – Rs. 1500/- + GST; above Rs 10 lacs… Full feeShow less
Loan amount upto Rs 10 lacs – Rs. 1500/- + GST; above Rs 10 lacs – Rs. 2000/- + GST; Rs. 500/- + GST for State/Central/PSU employees- Credit rating
- CARE AAA
/StableCARE, 7 Oct 2026 - Verified
- 21 Oct 2026
- Indian Overseas Bank
- Type
- Public sector bank
- Starting from
- 7.85%up to 8.85%
- EMI on ₹8,00,000
- ₹16,164at the starting rate
- Processing fee
- Full Waiver of Processing Charges on Vehicle Loans
- Credit rating
- IND AA+
/StableIndia Ratings, 5 Oct 2026 - Verified
- 21 Oct 2026
- Punjab & Sind Bank
- Type
- Public sector bank
- Starting from
- 7.85%up to 14.3%
- EMI on ₹8,00,000
- ₹16,164at the starting rate
- Processing fee
- Not published
- Credit rating
- IND AA
/StableIndia Ratings, 6 Oct 2026 - Verified
- 21 Oct 2026
- Union Bank of India
- Type
- Public sector bank
- Starting from
- 7.85%up to 10.25%
- EMI on ₹8,00,000
- ₹16,164at the starting rate
- Processing fee
- Not published
- Credit rating
- CARE AAA
/StableCARE, 7 Oct 2026 - Verified
- 21 Oct 2026
- Federal Bank
- Type
- Private bank
- Starting from
- 7.85%up to 9%
- EMI on ₹8,00,000
- ₹16,164at the starting rate
- Processing fee
- New Car Loans: Upto Rs.5Lakh -Rs.2000/-; Above Rs.5.00L-Rs.4500/-
- Credit rating
- CARE AA+
/StableCARE, 7 Oct 2026 - Verified
- 21 Oct 2026
- Central Bank of India
- Type
- Public sector bank
- Starting from
- 7.9%up to 9.55%
- EMI on ₹8,00,000
- ₹16,183at the starting rate
- Processing fee
- Not published
- Credit rating
- Crisil AA+
/StableCRISIL, 4 Aug 2026 - Verified
- 21 Oct 2026
- Punjab National Bank
- Type
- Public sector bank
- Starting from
- 7.9%up to 9.95%
- EMI on ₹8,00,000
- ₹16,183at the starting rate
- Processing fee
0.25% of Loan amount (Minimum – Rs. 1000/- Maximum Rs. 1500/-) (Full… Full feeShow less
0.25% of Loan amount (Minimum – Rs. 1000/- Maximum Rs. 1500/-) (Full waiver during PNB Utsav Festivities 2026, 01.10.2026 to 31.12.2026)- Credit rating
- Crisil AAA
/StableCRISIL, 12 Dec 2025 - Verified
- 21 Oct 2026
- Karnataka Bank
- Type
- Private bank
- Starting from
- 8.16%up to 11.66%
- EMI on ₹8,00,000
- ₹16,282at the starting rate
- Processing fee
- Not published
- Credit rating
- CARE A+
/StableCARE, 17 Aug 2026 - Verified
- 21 Oct 2026
- ICICI Bank
- Type
- Private bank
- Starting from
- 8.4%
- EMI on ₹8,00,000
- ₹16,375at the starting rate
- Processing fee
- Up to ₹8,500 + applicable GST (new car)
- Credit rating
- Crisil AAA
/StableCRISIL, 19 Nov 2025 - Verified
- 21 Oct 2026
- YES BANKRates actually charged in April–June 2026, from the bank's disclosure; not a card rate
- Type
- Private bank
- Starting from
- 8.51%up to 11.51%Rates actually charged (April–June 2026), not a starting rate
- EMI on ₹8,00,000
- ₹16,417at the lowest rate charged
- Processing fee
- For New Car - Upto 2% of Loan Amount subject to minimum of Rs 2499/-.
- Credit rating
- Crisil AA+
/StableCRISIL, 4 Aug 2026 - Verified
- 21 Oct 2026
- State Bank of India
- Type
- Public sector bank
- Starting from
- 8.55%up to 9.5%
- EMI on ₹8,00,000
- ₹16,433at the starting rate
- Processing fee
SBI Car Loan (new vehicle), salaried: Up to Rs 5 Lakh Rs 500 + GST… Full feeShow less
SBI Car Loan (new vehicle), salaried: Up to Rs 5 Lakh Rs 500 + GST; >5 to 10 Lakh Rs 1000 + GST; above Rs 10 Lakh Rs 1500 + GST- Credit rating
- [ICRA]AAA
/StableICRA, 5 Oct 2026 - Verified
- 21 Oct 2026
- Dhanlaxmi Bank
- Type
- Private bank
- Starting from
- 8.7%up to 13.85%
- EMI on ₹8,00,000
- ₹16,490at the starting rate
- Processing fee
Car Loan/Used Car Loan 0.25%, subject to min Rs.2000 and maximum of… Full feeShow less
Car Loan/Used Car Loan 0.25%, subject to min Rs.2000 and maximum of Rs.12500/-- Credit rating
- [ICRA]BBB-
/StableICRA, 19 Aug 2026 - Verified
- 21 Oct 2026
- Axis Bank
- Type
- Private bank
- Starting from
- 8.8%up to 11.7%
- EMI on ₹8,00,000
- ₹16,529at the starting rate
- Processing fee
- Upto 2% of the loan amount + GST as applicable
- Credit rating
- IND AAA
/StableIndia Ratings, 25 Sept 2026 - Verified
- 21 Oct 2026
- CSB BankRates actually charged in the period on the bank's page, from the bank's disclosure; not a card rate
- Type
- Private bank
- Starting from
- 8.9%up to 11%Rates actually charged (the period on the bank's page), not a starting rate
- EMI on ₹8,00,000
- ₹16,568at the lowest rate charged
- Processing fee
FEES NEW CARS: Rs. 3,000 - Rs. 5,000 + Taxes (documentation Rs. 500 +… Full feeShow less
FEES NEW CARS: Rs. 3,000 - Rs. 5,000 + Taxes (documentation Rs. 500 + Taxes)- Credit rating
- IND A
/StableIndia Ratings, 13 Aug 2026 - Verified
- 21 Oct 2026
- IDFC FIRST Bank
- Type
- Private bank
- Starting from
- 8.99%
- EMI on ₹8,00,000
- ₹16,603at the starting rate
- Processing fee
- Up to 5% of the Loan Amount (Inclusive of GST)
- Credit rating
- Crisil AA+
/StableCRISIL, 16 Oct 2026 - Verified
- 21 Oct 2026
- HDFC Bank
- Type
- Private bank
- Starting from
- 9%
- EMI on ₹8,00,000
- ₹16,607at the starting rate
- Processing fee
Up to 0.5% of the loan amount subject to a minimum of ₹3,500 and a… Full feeShow less
Up to 0.5% of the loan amount subject to a minimum of ₹3,500 and a maximum of ₹8,000.- Credit rating
- CARE AAA
/StableCARE, 27 Aug 2026 - Verified
- 21 Oct 2026
- Equitas Small Finance Bank
- Type
- Small finance bank
- Starting from
- 9%up to 25%
- EMI on ₹8,00,000
- ₹16,607at the starting rate
- Processing fee
- Processing Charges# [Range] 1% to 2.25% + GST
- Credit rating
- CARE AA-
/StableCARE, 9 Oct 2026 - Verified
- 21 Oct 2026
- Tamilnad Mercantile Bank
- Type
- Private bank
- Starting from
- 9.75%up to 11.4%
- EMI on ₹8,00,000
- ₹16,899at the starting rate
- Processing fee
- Proposal Processing Charges: Others 1% of the loan amount* (+ GST)
- Credit rating
- IND AA-
/StableIndia Ratings, 5 Oct 2026 - Verified
- 21 Oct 2026
- DCB Bank
- Type
- Private bank
- Starting from
- 10.6%up to 18%
- EMI on ₹8,00,000
- ₹17,235at the starting rate
- Processing fee
- Upto 2% of the loan amount, subject to a minimum of ₹ 5000/-
- Credit rating
- CARE AA-
/StableCARE, 7 Jul 2026 - Verified
- 21 Oct 2026
- Suryoday Small Finance Bank
- Type
- Small finance bank
- Starting from
- 12%
- EMI on ₹8,00,000
- ₹17,796at the starting rate
- Processing fee
- Up to 1% plus GST for New Car & Up to 1.25 % Plus GST for Used Car.
- Credit rating
- [ICRA]A
/StableICRA, 23 Sept 2026 - Verified
- 21 Oct 2026
These are the lowest car loan rates each bank publishes. The rate you are offered depends on your credit score, income and employer, and can be higher. A row marked “rates actually charged” shows the lowest and highest rates the bank charged on loans in that period, not a starting rate, and is left out of the lowest and highest figures. EMIs above do not include processing fees, insurance or other charges. Check with the bank before you apply. How we check these rates.
- What it is:
- A ranking of Indian banks' car loan starting interest rates.
- What it calculates:
- Each bank's lowest published rate and the EMI on your amount at that rate.
Key Assumptions
- Starting rates as published on each bank's site on the date shown.
- Your actual rate depends on credit score, income and employer.
- EMIs exclude processing fees and other charges.
How does the Lowest Car Loan Interest Rates work?
Each starting rate was read from the bank's own website or rate document and dated; each row links to its source. A row marked "may be outdated" has not been re-checked for more than 45 days.
For loans a lower rate is better, so the list starts with the lowest. The starting rate is the best the bank offers, usually to borrowers with a high credit score; many people are offered more.
The EMI shown uses the starting rate for the amount and tenure you enter. Processing fees, insurance and other charges are not included; fees are shown in the bank's own words where it publishes them.
Rates as of 21 October 2026.
Lowest Car Loan Interest Rates formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P
- = loan amount
- r
- = monthly rate = annual starting rate ÷ 12 ÷ 100
- n
- = tenure in months
Lowest Car Loan Interest Rates: worked example
Lowest 3 starting rates: EMI on ₹8,00,000 over 5 years
- Bank of Maharashtra
- 7.7%, EMI ₹16,106
- UCO Bank
- 7.7%, EMI ₹16,106
- Canara Bank
- 7.8%, EMI ₹16,145
Lowest Car Loan Interest Rates: frequently asked questions
Which bank has the lowest car loan rate?
The list above ranks every bank's published starting rate for new car loans, lowest first, with the date each was checked.
Does the car's price or model change the rate?
It can. Banks may price by loan-to-value, tenure, the car's segment and your profile. Ask the bank for your exact rate.
Further reading
How Is EMI Calculated?
How Indian lenders work out your monthly instalment, why the interest portion shrinks every month, and what actually changes the number.
Read article
What Happens If You Prepay a Loan?
What a lump-sum prepayment does to an Indian loan, the choice between cutting the tenure and cutting the EMI, and when it is worth doing at all.
Read article
Reviewed by Pradipta Ray, MBA (Finance) · Updated