Dec car loan rates start at 7.6%; EMIs around Rs 10,000: Check full list

Public sector lenders offer lowest rates but buyers must compare processing fees and EMI structures to determine the true overall borrowing cost

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Banks’ car loan rates in December are largely unchanged from the previous month but prices vary, making it important for customers to compare offers. Headline rates for a five-year, Rs 5 lakh car loan range from 7.60 per cent to more than 14 per cent, depending on the lender, according to data compiled by BankBazaar.com as of December 3.

 

Public sector banks

 

Most large state-owned banks are offering car loans that begin below 8 per cent per annum.

 

UCO Bank has one of the lowest bands at 7.60–10.25 per cent, with no processing fee for both regular and electric vehicle loans.

 

Canara Bank starts at 7.70 per cent, and has waived the processing fee until 31 December 2025, making it a cost-effective option for buyers finalising purchases this month.

 

Union Bank of India and Punjab National Bank are quoting 7.80–9.70 per cent, with monthly EMIs between Rs 10,090 and Rs 10,550. PNB levies a fee of up to 0.25 per cent, while Union Bank caps the charge at Rs 1,000.

 

State Bank of India is offering a fixed 8.75 per cent, with EMIs of Rs 10,319 and a processing fee of Rs 750–1,500.

 

Private banks

 

Private-sector lenders continue to charge higher effective borrowing costs.

 

ICICI Bank’s rates begin at 8.50 per cent, with a processing fee of up to 2 per cent, which can significantly raise the upfront cost.

 

HDFC Bank starts at 9.32 per cent, with fees ranging from Rs 3,500 to Rs 8,000.

 

IDFC FIRST Bank quotes 9.99 per cent onwards and charges up to Rs 10,000 for processing.

 

Borrowers considering private banks may need to factor in both the higher EMI and the larger one-time charges.

 

Banks offering competitive mid-range pricing

Bank of Maharashtra charges 7.70–12.00 per cent, with a 0.25 per cent processing fee.

 

Indian Bank offers 7.75–9.85 per cent with a flat Rs 1,200 fee.

 

Central Bank of India has 7.85–9.45 per cent, and is waiving processing fees until 31 March 2026.

 

Interest rates alone do not determine the true cost of a car loan. Processing fees, festive concessions, and relationship benefits (such as the home loan–linked concession at Bank of Maharashtra) can meaningfully influence the overall payout.

 

Latest car loan rates in December

 

Name of Banks/NBFCs	Interest rate (%) p.a.	EMI (Rs)  Loan amount-5 lakh  Tenure-5 years	Processing fee  (% of loan amount)
Union Bank of India	7.80-9.70	10,090 - 10,550	Up to Rs 1,000
Punjab National Bank	7.80-9.70	10,090 - 10,550	Up to 0.25% (Rs. 1,000 - Rs. 1,500)
Bank of Baroda	8.15-11.60	10,174 - 11,021	Up to Rs. 2,000
Canara Bank	7.70-11.70	10,067 - 11,047	100% waiver till 31.12.2025
Bank of India	7.85-12.15	10,102 - 11,160	Up to 0.25% (Rs. 2,500 - Rs. 10,000)

UCO Bank 7.60-10.25 10,043 - 10,685

NIL on all cars & electric vehicle loans

State Bank of India 8.75 10,319 Rs 750 - Rs 1,500 IDBI Bank 7.95-9.10 10,126 - 10,403 Rs 2,500 Bank of Maharashtra* 7.70-12.00 10,067 - 11,122 0.25% (Rs 1,000 - Rs 15,000) Indian Overseas Bank 7.80-12.00 10,090 - 11,122 0.50% (Rs 500 - Rs 5,000) ICICI Bank 8.50 onwards 10,258 onwards Up to 2% HDFC Bank 9.32 onwards 10,428 onwards Up to 0.5% (Rs. 3,500 - Rs. 8,000) Karnataka Bank 8.00-11.50 10,138 - 10,996

Up to 0.60% (Rs. 2,500 - Rs. 11,000)

Federal Bank 10.00 onwards 10,624 onwards Rs. 2,000 - Rs. 4,500 Punjab and Sind Bank** 7.75-14.25 10,078 - 11,699 0.25% (Rs. 1,000 - Rs. 15,000) Indian Bank 7.75-9.85 10,078 - 10,587 Rs. 1,200 IDFC FIRST Bank 9.99 onwards 10,621 onwards Up to Rs. 10,000 Central Bank of India 7.85-9.45 10,102 - 10,489 No processing fees till 31.03.2026 *0.25% interest rate concession for existing home loan borrowers and other existing customers having atleast 6 months of relationship with the bank.  **Concession of up to 50% on processing fee for PSB Apna Vahan Sugam. Rates and charges as of 3rd Dec 2025. Source: Paisabazaar.com

Borrowers should compare:

 

Total EMI over the loan tenure

 

Effective annual percentage cost, including fees

 

Limited-period waivers and concessions

 

With several banks offering fee waivers and sub-8 per cent starting rates, December remains a favourable time for cost-conscious car buyers to finalise their financing decisions.