|Name of the Bank||Interest Rate (p.a.)||Lowest EMI per lakh for 7 years|
|State Bank of India||9.00% - 9.70%||Rs.1,609|
|ICICI Bank||9.30% - 12.85%||Rs.1,624|
|Indian Overseas Bank||9.15%||Rs.1,617|
|Jammu Kashmir Bank||11.25%*||Rs.1,725|
|Canara Bank||8.80% - 9.45%||Rs.1,599|
|Allahabad Bank||8.85% - 11.10%||Rs.1,601|
|HDFC Bank||9.10% - 15.50%||Rs.1,642|
|Syndicate Bank||9.10% - 9.35%||Rs.1,614|
|Karur Vysya Bank||9.55% - 10.65%||Rs.1,637|
|South Indian Bank||9.50%||Rs.1,634|
|IDBI Bank||9.30% - 9.90%||Rs.1,624|
|Karnataka Bank||9.25% to 10.50%||Rs.1,622|
|Federal Bank of India||9.15%||Rs.1,617|
|Corporation Bank||9.50% - 10.00%||Rs.1,634|
|Punjab and Sind Bank||8.95%||Rs.1,606|
|City Union Bank||14.50%||Rs.1,902|
|Tamilnad Mercantile Bank||10.45% - 11.70%||Rs.1,683|
|Punjab National Bank||8.90% - 9.35%||Rs.1,604|
|Union Bank of India||9.05%||Rs.1,611|
|Oriental Bank of Commerce||9.05% - 9.15%||Rs.1,611|
|Central Bank of India||7.05%||Rs.1,512|
|Lakshmi Vilas Bank||8.10%||Rs.1,564|
|United Bank of India||8.95% - 9.00%||Rs.1,606|
Updated on - 20 Nov 2019
Car loan interest rates can be fixed or floating in nature. A fixed interest rate refers to a rate which remains constant throughout the loan tenure. Factors like market fluctuations do not affect fixed interest rates. On the other hand, a floating interest rate is a type of rate that keeps getting modified as per changing trends in the financial market.
The differences between the two types of rates are explained in the table given below:
|Fixed interest rate||Floating interest rate|
|Interest rate is higher||Interest rate is lower|
|EMIs will remain constant||EMIs will change according to MCLR changes|
|Comes with lower risk||Comes with 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)|
|Name of the Lender||Interest Rate (p.a.)||Loan Amount||Processing Fee|
|Central Bank of India||8.95%||Up to Rs.75 lakh||Rs.500 to Rs.20 lakh|
|Bank of Maharashtra||9.1% to 11.1%||Up to 36 months of salary or pension||As applicable|
|Union Bank of India||9.10%||Up to Rs.125 lakh||0.5% of loan amount Max: Rs.15,000|
|Allahabad Bank||8.8% to 11.05%||Up to 3 times of monthly income/salary||0.50% of loan amount Max: Rs.8696|
|IDBI Bank||9.30% to 9.90%||Rs.1,000|
|Axis Bank||9.05% to 11.30%||Rs.1 lakh onwards||Rs.3,500 to Rs.5,500|
|Andhra Bank||9.45%||Max: Rs.25,000 to Rs.50 lakh For Loan for women borrowers: Up to Rs.5 lakh||1% of loan amount Min: Rs.1,000 Max: Rs.25,000|
|State Bank of India||9.00% to 9.70%||Up to 48 times of monthly income||Rs.1,000 to Rs.1,500 + GST|
|Jammu And Kashmir Bank– Fixed Rate||9.85% to 10.35%||Up to 3 times net annual income or 36 months net monthly salary||0.5% of loan amount Min: Rs.500|
|Jammu And Kashmir Bank Car Loan – Floating Rate||9.6% to 10.1%||Up to 3 times net annual income or 36 months net monthly salary||0.5% of loan amount Min: Rs.500|
|Canara Bank Car Loan||9% to 9.65%||Up to 90% of the car's value||0.25% of loan amount Min: Rs.1,000 Max: Rs.5,000|
|Federal Bank Car Loan||9.15%||Up to 100% of the car's ex-showroom price||Rs.1,500 to Rs.2,500|
|Yes Bank Car Loan||9.25% onwards||Up to Rs.500 lakh||Up to 1% of loan amount or Rs.10,000, whichever is lower|
|Indian Bank Car Loan||9.65%||Up to Rs.200 lakh||0.23% of loan amount Max: Rs.10,236|
|Bank of Baroda||8.95% onwards||Up to Rs.100 lakh||0.5% of loan amount Max: Rs.10,000|
|Bank of India Car Loan||9.50%||Individuals-Up to Rs.50 lakh Companies-Up to Rs.100 lakh||Rs.500|
Used Car Loan
Lenders have different interest rates set for used car loans which depend on a lot of factors such as the age of the vehicle, loan tenure, etc. Get to know more about Pre-owned auto loans.
If you have a good credit score, higher income, and a good relationship with the bank, you can negotiate for a lower interest rate on car loans. However, this will solely lie at the discretion of the bank whether to honour the request or not.
Lenders offer both fixed and floating rates of interest on car loans. As the names suggest, fixed interest rates would mean that the interest rate will be fixed throughout the loan tenure, and floating interest rates would mean that the interest rate will vary based on different factors. Before you avail a car loan, check with the lenders what kind of interest rates they offer and pick the one that suits your requirements.
When you apply for a car loan, the first thing that lenders look for is your credit score. Most lenders prefer lending to someone with a credit score above 750. With your score, it may be a bit difficult for you to get a car loan and if you do manage to get one, you may be charged a higher rate of interest.
If you make a higher down payment, you will need to avail a lesser amount as a car loan. In such cases, you may be able to get a lower interest rate since you will be repaying the loan quicker.
Yes. There are some lenders who offer a concession on car loan interest loans for women borrowers. One such bank is State Bank of India (SBI) which offers an interest rate that is lower than the one offered to other borrowers. Currently, the car loan interest rate is 9.60% for male borrowers while for women borrowers it is 9.55% for new cars. However, these special interest rates are only applicable to borrowers who are eligible for the Loyalty Car Loan Scheme.
The interest rate on a car loan is not directly affected by the type of car but may depend on the cost of the car. For example, luxury cars may have a lower interest rate as the amount of loan tends to be higher. Having said that, some lenders may charge a higher interest loan on higher loan amount availed.
Yes. If you make a prepayment, there are chances that the lender will offer you a lower interest rate because when you make a prepayment, the overall loan amount reduces. However, before you prepay your loan, understand the process completely as there may be some penalty that lenders will charge you. Also, whether you should make a prepayment or not will depend on factors such as the interest rate, stage of loan payment you are at, etc.
If you have a high credit score (above 750), make a higher down payment, choose a shorter repayment tenure, and have a steady source of income, you can negotiate with the lenders to offer you a lower interest rate on a car loan. Most lenders will be happy to acknowledge your request. However, before you negotiate with other lenders, make sure you check with your existing lender. As they are already aware of your transaction history, there are high chances of them acknowledging your request.
If you choose a car loan with a fixed interest rate, the interest that you will be paying will remain unchanged throughout the loan tenure. However, if you go for a floating rate of interest, the interest that you will be paying may be higher or lower based on the increase or decrease in the interest rate. A fixed interest rate is recommended if you feel that there are chances of the interest rate increasing in the future and you do not want to take any risks.
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