Buying your dream car just got easier with the best car loan in India offering competitive rates, flexible tenures, and instant approvals. This guide compares SBI car loan interest rates, digital lenders, and EMI calculations to help you save money. Whether you’re buying new or used, we break down the top options for 2025.
Top 5 Car Loans in India (2025)
| Bank/NBFC | Interest Rate | Processing Fee | Max Tenure | Loan Amount |
|---|---|---|---|---|
| SBI Car Loan | 8.75% – 9.85% | 0.35% (Min ₹1,500) | 7 Years | Up to ₹5 Cr |
| HDFC Bank | 8.95% – 10.5% | 0.4% (Max ₹10,000) | 7 Years | Up to ₹3 Cr |
| Tata Capital | 9.25% – 11% | 0.5% – 1% | 7 Years | Up to ₹1.5 Cr |
| ICICI Bank | 9% – 10.75% | 0.5% (Min ₹1,999) | 8 Years | Up to ₹5 Cr |
| KreditBee (App) | 10.5% – 14% | 1% – 2% | 5 Years | Up to ₹15 Lakh |
Note: Rates vary based on credit score (750+ gets lowest rates).
Car Loan EMI Calculator
Formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N-1] P = Loan Amount | R = Monthly Interest Rate | N = Tenure (Months)
Example:
- Loan Amount: ₹10 Lakh
- Tenure: 5 Years (60 Months)
- Interest Rate: 9.5%
- EMI: ₹20,997
💡 Use BankBazaar’s Car Loan EMI Calculator for instant results.
Best Car Loan App in India
- BankBazaar – Compare multiple lenders
- Paisabazaar – Pre-approved offers
- KreditBee – Instant disbursal (up to ₹15L)
Digital lenders offer faster approval but higher rates than banks.
How to Get the Lowest Interest Rate?
✔ Credit Score: 750+ (Check free on CIBIL/Experian)
✔ Down Payment: 15-20% lowers interest burden
✔ Negotiate Fees: Waive processing charges
✔ Special Offers: Festive discounts (e.g., SBI’s 8.75% till Dec 2024)
SBI Car Loan – Best for Low Rates
- Interest: From 8.75% (Lowest in India)
- Max Tenure: 7 Years
- Prepayment: No penalty after 1 Year
Eligibility:
- Salaried (₹3L+ annual income)
- Self-Employed (₹4L+ profit)
Used Car Loan Rates (2025)
| Lender | Interest Rate | Max Age of Car |
|---|---|---|
| SBI | 9.5% – 11.5% | 5 Years |
| HDFC | 10% – 12.5% | 7 Years |
| Mahindra Finance | 11% – 14% | 8 Years |
Hidden Charges to Avoid
❌ Prepayment Penalty: Up to 2% (Check terms)
❌ Insurance Mandate: Some banks force their policy
❌ Late Fees: 2% per month on overdue EMI
FAQs
Q1. Which bank has the lowest car loan interest rate?
SBI (8.75%) beats HDFC (8.95%) and ICICI (9%).
Q2. Can I get a car loan without salary slip?
Yes, via self-employed ITR or FD-backed loans.
Q3. Best app for instant car loan?
KreditBee (Disbursal in 24 hrs) but higher rates.
Final Verdict
- Best Overall: SBI Car Loan (Lowest rate + trust)
- Quick Approval: HDFC Bank (48-hr processing)
- Used Cars: Mahindra Finance (Flexible tenure)
Pro Tip: Compare via Paisabazaar before finalizing!
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