Purchasing a car is a significant financial decision, and securing the right car loan can make this journey smoother. In India, numerous banks offer competitive car loan options tailored to various needs. Based on current offerings, here are the top 10 banks for car loans in India as of 2025:
|
Bank Name |
Interest Rate (New Car) (Tentative) | Loan Tenure | Processing Fee |
Highlights |
| SBI | 8.55% p.a. | Up to 7 yrs | Nil | Wide branch network, competitive rates |
| Axis Bank | 8.55% p.a. | Up to 8 yrs | Minimum of Rs.3,500
maximum of Rs.12,000
|
Special benefits for priority banking customers |
| ICICI Bank | 9.10% p.a. | Up to 7 yrs | Contact the bank | Customized solutions, flexible repayment options |
| HDFC Bank | 10% p.a. | Up to 7 yrs | Up to 1% of loan amount (min. Rs.3,500; max. Rs.9,000) | 100% financing, flexible EMI options |
| Canara Bank | 9.30% p.a. | Up to 7 yrs | 0.25% of loan amount (min. Rs.1,000; max. Rs.5,000) | Minimal documentation, competitive rates |
| Bank of Baroda | 8.40% p.a. | Up to 7 yrs | Up to Rs.750 plus GST | Flexible repayment options, no prepayment charges |
| Kotak Mahindra Bank | 9.10% p.a. | Up to 7 yrs | Contact the bank | Personalized solutions, quick processing |
| IDFC First Bank | 9.99% p.a. | Up to 10 yrs | Contact the bank | Long-tenure loans, minimal documentation |
| Federal Bank | 9.20% p.a. | Up to 7 yrs | Contact the bank | 100% financing, free personal accident insurance |
| PNB | 8.70% p.a. | Up to 7 yrs | NIL | Competitive rates, flexible repayment options |
1. State Bank of India (SBI)
- Interest Rates: Starting from 8.55% p.a. for new cars.
- Loan Tenure: Up to 7 years.
- Highlights: SBI offers car loans with attractive interest rates and a wide branch network for easy access.
|
Car Loan Scheme |
Eligibility |
Loan Tenure & Loan Amount |
| SBI New Car Loan Scheme | Age: 21-70 years | Up to 7 years
Salaried: 48x the net monthly income Self-employed: 4x Gross Taxable Income/Net Profit Agriculturists: 3x Net Annual Income |
| SBI Loyalty Car Loan Scheme | Meant for existing SBI Home Loan borrowers Minimum annual income: Rs.2 lakh | Up to 7 years
Will depend on various factors |
| SBI Assured Car Loan Scheme | Minimum age: 18 years; no maximum age Income declared by applicants will be accepted | 3-7 years
Min: Rs.1 lakh; No cap on maximum |
| Green Car Loan: For
Electric Cars |
Age: Between 21 years and 70 years | 3-8 years
Contact the bank |
2. Axis Bank
- Interest Rates: Starting from 8.55% p.a. for new cars.
- Loan Tenure: Up to 8 years.
- Eligibility: Age: 18-65 years
- Highlights: Axis Bank provides special benefits for priority banking customers and offers a streamlined loan process for pre-approved customers.
3. ICICI Bank
- Interest Rates: Starting from 9.10% p.a. for new cars.
- Loan Tenure: Up to 7 years.
- Highlights: ICICI Bank offers customized car loan solutions with flexible repayment options and quick processing.
4. HDFC Bank
- Interest Rates: Starting from 10% p.a. for new cars.
- Loan Tenure: Up to 7 years.
- Highlights: HDFC Bank provides 100% financing for new cars and offers flexible EMI options.
| Car Loan Scheme | Eligibility | Loan Tenure | Loan Amount |
| New Car Loan | Age: 21-65 years Minimum annual income: Rs.3 lakh | Up to 7 years | Maximum loan of Rs.10 crore |
5. Canara Bank
- Interest Rates: Starting from 9.30% p.a. for new cars.
- Eligibility: Minimum annual income: Rs.3 lakh
- Loan Tenure: Up to 7 years.
- Highlights: Canara Bank offers car loans with minimal documentation and competitive interest rates.
6. Bank of Baroda
- Interest Rates: Starting from 8.40% p.a. for new cars.
- Loan Tenure: Up to 7 years.
- Eligibility: Age: 21-70 years Minimum credit score of 725
- Highlights: Bank of Baroda provides car loans with flexible repayment options and no prepayment charges.
7. Kotak Mahindra Bank
- Interest Rates: Starting from 9.10% p.a. for new cars.
- Loan Tenure: Up to 7 years.
- Highlights: Kotak Mahindra Bank offers personalized car loan solutions with quick processing and competitive rates.
8. IDFC First Bank
- Interest Rates: Starting from 9.99% p.a. for new cars.
- Loan Tenure: Up to 10 years.
- Highlights: IDFC First Bank provides long-tenure car loans with attractive interest rates and minimal documentation.
9. Federal Bank
- Interest Rates: Starting from 9.20% p.a. for new cars.
- Loan Tenure: Up to 7 years.
- Eligibility: Minimum take home criterion applicable based on employment type
- Highlights: Federal Bank offers car loans with 100% financing options and free personal accident insurance up to ₹10 lakh.
10. Punjab National Bank (PNB)
- Interest Rates: Starting from 8.70% p.a. for new cars.
- Eligibility: Minimum net monthly income: Rs.25,000
- Loan Tenure: Up to 7 years.
- Highlights: PNB provides car loans with competitive interest rates and flexible repayment options.