Delhi, the capital of India is known for several popular things including the food, people’s diversity, Red Fort, marketplaces, and more. One more thing Delhi is extensively famous for is the wide range o cars running on roads. The National Capital Region has more cars compared to other cities in the country. The reason behind this is the easy accessibility of the best car loans in Delhi for people of different income groups. Financing a new car or even a used car has become quite a norm among people to make their dream come true of owning a favored choice of four-wheeler. The competitive car loan interest rate in Delhi is less compared to other regions making it easily accessible among borrowers.
So, here in this blog, you will get to know important things related to the best car loan in Delhi, either for a new vehicle or even for a used car. If you are interested in buying your choice of a compact car, a luxuriously featured sedan, SUV, MUV, hatchback, or even a fast-running sports car, then know everything about new and loan on second-hand cars in Delhi.
With no further ado, let’s get started on the same.
What it is a New Car Loan in Delhi and its Features?
Purchasing a new car is one of the biggest achievements generally and car loan in Delhi to finance a vehicle purchase have become trendy among car owners. A new car loan is another form of secured one, which intends to assist people purchase new automobiles with a loan empowered by banks or other related financial institutions. This particular type of loan is always paid on the Equated Monthly Installments (EMIs) basis for a certain number of years in order to cut down the automobile ownership acquisition period and bring it within the reach of the common man.
Features of a New Car Loan in Delhi
Competitive Interest Rates
Another factor that might attract borrowers to new car loan in Delhi is that the going interest rates offered by lenders are rather favorable. Car loan interest rates in Delhi differ in view of the credit score; the applicant’s income as well as the relation with the lender. Borrowers can use the information provided to compare different choices and arrive a satisfactory rate for them.
Flexible Loan Tenure
The amount of car loans extends from 1 to 7 years which gives flexibility in terms of the tenure of payment. Borrowers can select a reimbursement method in accordance with their pay ability so as never to dramatically affect the EMIs to be made during the lifetime of the loan.
High Loan Amounts
Delhi-based financial institutions offer up to 90% of the on-road price of cars thus requiring a minimum down payment. In fact, some lenders make 100% financing for certain qualified customers who are not required to make any down payment.
Customizable EMIs
Banks provide help to the borrowers in the form of EMI predictors or calculators through which they can get to know about their undertakings or payments to be made by them every month answering to the amount financed, rate of interest, and the term for reimbursement. It assists in smooth invasion of the cash flow patterns and keeps the borrower free from unnecessary debts.
Easy Application Process
It has never been easier to apply for a car loan in Delhi as applicants can apply both online and through a branch. Less paperwork and quicker turn-around time enable the applicants to receive their loans approved quickly.
What is a Used Car Loan in Delhi and Its Features?
A used car loan in Delhi is a type of loan aimed at helping those people who decide to get used cars for buying. NBFCs and other lending institutions including banks provide these second-hand car loans to make it easier for people to purchase a second-hand car. Whether it is a shift to a new car or buying a new one, a loan on second-hand cars in Delhi enables one to complete it without digging into a personal wallet.
Features of a Used Car Loan in Delhi
Attractive Interest Rates
There is also healthy competition among various financial institutions dealing with used car finance in Delhi, which means that borrowers are only required to pay relatively small amounts as interest on any used car finance Delhi that they wish to take. The rates vary depending on the age of the vehicle, its make or model, the applicant’s credit record, and their repayment record.
High Loan-to-Value Ratio (LTV)
Lenders offer up to 80-90% of car valuation so that an eligible candidate can afford the loan. As such, you only have to make a small deposit to acquire the car, hence making a loan on second-hand cars in Delhi very easy for those with little cash.
Flexible Repayment Tenures
Used car loans in Delhi can be repaid at any time that falls between one year to seven years. This flexibility enables the borrowers to select a tenure that is feasible for them and results in Easy Quarterly/ Monthly Installments (EMI).
Minimal Documentation
The applicant does not require many documents to fill in – they include identity documents, residential proof, income proof, and car specifications. A lot of these lenders also provide fill-in-on-line forms; hence, the process is quick and uncomplicated.
Quick Loan Disbursal
Delhi lenders make sure you get your loans processed quickly and disbursed to your account, which will enhance the smooth buying of cars.
Eligibility for a Variety of Cars
From an affordable family car to a luxurious vehicle, every automobile financier offers a loan on used cars in Delhi for a number of models and brands. But, the age of the car is another important factor where eligible cars are generally below the age of 8-10 years usually.
Car Loan Interest Rate in Delhi 2025
Car loan Interest Rates in Delhi are attractive and start at 8.70% p.a. A Car loan in Delhi could cover up to 100% of the car’s on-road cost.
Car loan in Delhi with repayment terms of up to eight years are available from some lenders. Applying for a car loan is an easy process that may be done online or in person.
One can calculate the EMI of a car loan by using a car loan EMI calculator. Check out the list below to find out the lowest car interest rate in India.
Car Loan Interest Rate in Delhi for All Banks
| Name of the Bank | Car Loan Interest Rate in Delhi | EMI for Rs.1 lakh for 7 years |
| SBI Car Loan Interest Rate | 9.10% p.a. onwards | Rs.1,614 onwards |
| Indian Overseas Bank | 8.85% p.a. onwards | Rs.1,601 onwards |
| Jammu Kashmir Bank | RLLR + 0.75% p.a. onwards (floating)
RLLR + 0.25% p.a. onwards (fixed) |
Contact the bank |
| Canara Bank | 8.70% p.a. onwards | Rs.1,594 onwards |
| HDFC Car Loan Interest Rate | 9.40% p.a. onwards (Rack Interest) | Rs.1,629 onwards |
| ICICI Bank | 9.10% p.a. onwards | Rs.1,614 onwards |
| Karur Vysya Bank | 9.60% p.a. onwards | Rs.1,640 onwards |
| South Indian Bank | 8.75% p.a. onwards | Rs.1,596 onwards |
| IDBI Bank | 8.90% p.a. onwards (floating)
9.20% p.a. onwards (fixed) |
Rs.1,604 onwards
Rs.1,619 onwards |
| Yes Bank | Contact the bank | Contact the bank |
| Karnataka Bank | 8.88% p.a. onwards | Rs.1,611 onwards |
| Federal Bank of India | 8.85% p.a. onwards | Rs.1,601 onwards |
| Punjab National Bank | Floating: 8.75% p.a. onwards
Fixed: 9.75% p.a. onwards |
Rs.1,596 onwards
Rs.1,647 onwards |
| Union Bank of India | 8.70% p.a. onwards | Rs.1,594 onwards |
| Axis Bank | 9.30% p.a. onwards | Rs.1,624 onwards |
| Bank of Baroda | Fixed: 9.05% p.a. onwards
Floating: 9.40% p.a. onwards |
Rs.1,611 onwards
Rs.1,629 onwards |
| Bank of India | 8.85% p.a. onwards | Rs.1,601 onwards |
Types of Car Loan Interest Rate in Delhi 2025: Fixed and Floating
Car Loan Interest Rate in Delhi can be either fixed or variable. A fixed interest rate is one that doesn’t change during the course of the loan. Fixed interest rates are not impacted by variables such as market swings. Conversely, a floating interest rate is one that is constantly adjusted in response to shifting financial market trends.
The table below explains how the two types of rates differ from one another:
| Fixed interest rate | Floating interest rate |
| The interest rate is higher. | The interest rate is lower |
| EMIs will remain constant. | EMIs will change according to MCLR changes. |
| Comes with lower risk | Comes with a higher risk |
| Easy to prepare budgets with these rates | Tough to maintain budgets as rates keep changing |
| Offers security to borrowers | Offers savings to borrowers |
| Good for a short loan tenure (3 to 10 years) | Good for a long loan tenure (20 to 30 years) |
Car Loan Interest Rate in Delhi FAQs
Q1. What is the SBI Car Loan interest rate?
The average SBI car loan interest rate in India is 9.10% to 10.15% per annum. However, the interest depends on the type of car loan and tenure you choose.
Q2. What is the HDFC Car Loan interest rate?
The average HDFC car loan interest rate in India is 9.40% per annum. However, the interest depends on the type of car loan and tenure you choose.
Q3. What bank offers a 100% car loan?
You can get up to 100% on-road financing from HDFC Bank for a certain car type. HDFC Bank does not have a minimum credit score requirement for auto loans. However, a lower credit score may limit the amount of the loan you are eligible for.
Conclusion
In conclusion, apply for a car loan in Delhi to easily finance your dream car and start driving to any choice of road and region. Even find the flexibility to apply for a used car loan in Delhi with the help of a trusted financial partner like BIR Credit Solution. It’s one of the trusted new cars and used car loan providers in Delhi, ideally connected to reliable banks and making your way towards quick loan approval and easy finance.
