Car Loan Interest Rates India 2026 — New Car Compared Across Banks
Compare car loan rates across banks before visiting the showroom. Dealers often arrange loans at higher rates through their partners.
Current Car Loan Rates (April 2026)
| Lender | Rate | Max Tenure | Processing Fee |
|---|---|---|---|
| SBI | 9.25% p.a. | 7 yrs | Varies |
| PNB | 9.25% p.a. | 7 yrs | Varies |
| Bank of India | 9.25% p.a. | 7 yrs | Varies |
| HDFC Bank | 9.35% p.a. | 7 yrs | Up to 2% |
| Bank of Baroda | 9.40% p.a. | 7 yrs | 0.5% |
| Axis Bank | 9.50% p.a. | 5 yrs | Up to 2.5% |
| ICICI Bank | 10.75% p.a. | 7 yrs | Varies |
PSU banks (SBI, PNB, Bank of India) offer the lowest rate at 9.25%. Get pre-approved before visiting the showroom to negotiate from a position of strength.