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Car Loan

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Loan Amount

70- 90 % of car's value

Interest Rate

7 to 12% per Annum

Loan Tenure

1-7 years

Down Payment

10-25% of car's value

Processing Fees

0.5-2% of loan amount

Car Loan Interest 2025 - Interest Rate, Processing Fees, Down Payment

Bank Interest Rate (p.a.) Processing Fees Down Payment Loan Amount
State Bank of India (SBI) 7.20% onwards Starting from 0.40% of the loan amount Typically 10-15% of the car's on-road price Up to 85-90% of the on-road price
HDFC Bank 9.20% onwards Rs. 3,500 to Rs. 12,000 Minimum 10% of the car's on-road price Up to 100% of the ex-showroom price
Axis Bank 7.45% onwards Rs. 3,500 to Rs. 12,000 Minimum 5% of the car's on-road price Up to 95% of the ex-showroom price
ICICI Bank 10% onwards Rs. 999 to Rs. 8,500 Minimum 5% of the car's on-road price Up to 95% of the ex-showroom price
Punjab National Bank (PNB) 8.75% onwards 0.25% of the loan amount (Min Rs. 1,000; Max Rs. 1,500) Minimum 15% of the car's on-road price Up to 85% of the ex-showroom price
Canara Bank 7.30% onwards 0.25% of the loan amount (Min Rs. 1,000; Max Rs. 5,000) Minimum 10% of the car's on-road price Up to 90% of the on-road price
Bank of Baroda 7.00% onwards Rs. 1,500 Minimum 10% of the car's on-road price Up to 90% of the on-road price
Federal Bank 8.50% onwards As per bank's terms Typically 10-15% of the car's on-road price Up to 85-90% of the on-road price
Karnataka Bank 9.13% to 11.61% As per bank's terms Typically 10-15% of the car's on-road price Up to 85-90% of the on-road price
Union Bank of India 7.40% onwards 0.50% of the loan amount Minimum 10% of the car's on-road price Up to 85-90% of the on-road price
IDBI Bank 8.10% onwards 0.50% of the loan amount Minimum 10% of the car's on-road price Up to 90% of the on-road price
Bank of India 7.35% onwards Rs. 1,500 Minimum 10% of the car's on-road price Up to 90% of the on-road price
Central Bank of India 7.25% onwards Rs. 1,000 Minimum 10% of the car's on-road price Up to 90% of the on-road price
Indian Bank 7.50% onwards 0.50% of the loan amount Minimum 10% of the car's on-road price Up to 90% of the on-road price
UCO Bank 7.30% onwards Rs. 1,500 Minimum 10% of the car's on-road price Up to 90% of the on-road price
Indian Overseas Bank 7.55% onwards 0.50% of the loan amount Minimum 10% of the car's on-road price Up to 90% of the on-road price
South Indian Bank 9.85% onwards As per bank's terms Typically 10-15% of the car's on-road price Up to 85-90% of the on-road price
Yes Bank 9.25% onwards As per bank's terms Typically 10-15% of the car's on-road price Up to 85-90% of the on-road price
Kotak Mahindra Bank 9.50% onwards As per bank's terms Typically 10-15% of the car's on-road price Up to 85-90% of the on-road price
IndusInd Bank 9.75% onwards As per bank's terms Typically 10-15% of the car's on-road price Up to 85-90% of the on-road price

Important Points - 

a) SBI, Canara Bank, and Bank of Baroda offer the lowest interest rates starting at 7.00-7.30%.

b) HDFC Bank, ICICI Bank, and Kotak Mahindra Bank provide 100% financing options with competitive processing fees.

c) Union Bank of India and PNB are great choices for those looking for low processing fees.

 

Top 20 Car Loan Providers in India – 2025 

1. State Bank of India (SBI)

  • Interest Rate: 7.20% onwards
  • Processing Fees: 0.40% of the loan amount
  • Down Payment: 10-15% of the car's on-road price
  • Loan Amount: Up to 85-90% of the on-road price

2. HDFC Bank

  • Interest Rate: 9.20% onwards
  • Processing Fees: ?3,500 to ?12,000
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 100% of the ex-showroom price

3. Axis Bank

  • Interest Rate: 7.45% onwards
  • Processing Fees: ?3,500 to ?12,000
  • Down Payment: Minimum 5% of the car’s on-road price
  • Loan Amount: Up to 95% of the ex-showroom price

4. ICICI Bank

  • Interest Rate: 10% onwards
  • Processing Fees: ?999 to ?8,500
  • Down Payment: Minimum 5% of the car’s on-road price
  • Loan Amount: Up to 95% of the ex-showroom price

5. Punjab National Bank (PNB)

  • Interest Rate: 8.75% onwards
  • Processing Fees: 0.25% of the loan amount (Min ?1,000, Max ?1,500)
  • Down Payment: Minimum 15% of the car’s on-road price
  • Loan Amount: Up to 85% of the ex-showroom price

6. Canara Bank

  • Interest Rate: 7.30% onwards
  • Processing Fees: 0.25% of the loan amount (Min ?1,000, Max ?5,000)
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

7. Bank of Baroda

  • Interest Rate: 7.00% onwards
  • Processing Fees: ?1,500
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

8. Federal Bank

  • Interest Rate: 8.50% onwards
  • Processing Fees: As per bank’s terms
  • Down Payment: Typically 10-15% of the car’s on-road price
  • Loan Amount: Up to 85-90% of the on-road price

9. Karnataka Bank

  • Interest Rate: 9.13% to 11.61%
  • Processing Fees: As per bank’s terms
  • Down Payment: Typically 10-15% of the car’s on-road price
  • Loan Amount: Up to 85-90% of the on-road price

10. Union Bank of India

  • Interest Rate: 7.40% onwards
  • Processing Fees: 0.50% of the loan amount
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 85-90% of the on-road price

11. IDBI Bank

  • Interest Rate: 8.10% onwards
  • Processing Fees: 0.50% of the loan amount
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

12. Bank of India

  • Interest Rate: 7.35% onwards
  • Processing Fees: ?1,500
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

13. Central Bank of India

  • Interest Rate: 7.25% onwards
  • Processing Fees: ?1,000
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

14. Indian Bank

  • Interest Rate: 7.50% onwards
  • Processing Fees: 0.50% of the loan amount
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

15. UCO Bank

  • Interest Rate: 7.30% onwards
  • Processing Fees: ?1,500
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

16. Indian Overseas Bank

  • Interest Rate: 7.55% onwards
  • Processing Fees: 0.50% of the loan amount
  • Down Payment: Minimum 10% of the car’s on-road price
  • Loan Amount: Up to 90% of the on-road price

17. South Indian Bank

  • Interest Rate: 9.85% onwards
  • Processing Fees: As per bank’s terms
  • Down Payment: Typically 10-15% of the car’s on-road price
  • Loan Amount: Up to 85-90% of the on-road price

18. Yes Bank

  • Interest Rate: 9.25% onwards
  • Processing Fees: As per bank’s terms
  • Down Payment: Typically 10-15% of the car’s on-road price
  • Loan Amount: Up to 85-90% of the on-road price

19. Kotak Mahindra Bank

  • Interest Rate: 9.50% onwards
  • Processing Fees: As per bank’s terms
  • Down Payment: Typically 10-15% of the car’s on-road price
  • Loan Amount: Up to 85-90% of the on-road price

20. IndusInd Bank

  • Interest Rate: 9.75% onwards
  • Processing Fees: As per bank’s terms
  • Down Payment: Typically 10-15% of the car’s on-road price
  • Loan Amount: Up to 85-90% of the on-road price