Nov-end car loans start at 7.6%: Check rates, repayment terms of lenders
Besides loan rates, borrowers must consider other expenses a financial institution may charge them
 "Nov-end car loans start at 7.6%: Check rates, repayment terms of lenders")
People who plan to buy a car to avail of year-end discounts should compare interest rates and fees of vehicle loans to manage their monthly outgoings.
Banks and non-banking financial companies (NBFCs) are offering competitive car loan rates, with public-sector lenders having the most affordable terms. Data on loan rates and EMI below is from Paisabazaar.com (as of November 19).
Public-sector banks
For borrowers prioritising low interest rates, major public-sector banks remain the most attractive options.
Union Bank of India, Punjab National Bank, and UCO Bank offer some of the lowest starting rates, beginning at 7.60–7.80 per cent.
Canara Bank has one of the most competitive offers, starting at 7.70 per cent, paired with a full processing fee waiver till 31 December 2025.
Central Bank of India also stands out by waiving processing fees till 31 March 2026, reducing upfront costs significantly.
These lower rates translate into EMIs starting from roughly Rs 10,043–Rs 10,102 for a five-year, Rs 5 lakh loan.
Private banks
Private-sector lenders tend to price higher, although they may offer faster approvals and more flexible documentation.
ICICI Bank starts at 8.50 per cent
HDFC Bank from 9.20 per cent
Karnataka Bank at 9.00 per cent
NBFCs
Non-bank lenders typically offer wider eligibility and faster disbursal but at significantly higher interest rates.
Tata Capital and IDFC FIRST Bank begin around 9.49–9.99 per cent,
Bajaj Finserv, Shriram Finance, and HDB Financial Services can go up to 19–28 per cent, depending on the borrower’s profile and vehicle type.
EMIs rise sharply at these levels, with the highest band touching Rs 15,568 for a similar loan and tenure.
Latest car loan rates in November
| 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 | 9.20 onwards | 10,428 onwards | Up to 1% (Rs. 3,500 - Rs. 9,000) |
| Karnataka Bank | 9.00-11.69 | 10,379 - 11,044 | 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 |
| Tata Capital | 9.49% onwards | 10,498 onwards | Up to 2.95% |
| Bajaj Finserv | Up to 19% | Up to 12,970 | Up to 2.95% |
| Shriram Finance | 10% - 28% | 10,624 - 15,568 | Up to 5% |
| HDB Financial Services | 8.00% - 26.00% | 10,138 - 14,970 | Up to 3.54% |
| Sundaram Finance | 8.00% - 20.00% | 10,138 - 13,247 | 1% - 5% |
| *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 19th Nov 2025. | |||
| Source: Paisabazaar.com | |||
What should borrowers prioritise?
When comparing car loans, consider more than just the headline rate:
Processing fees and waivers can meaningfully reduce upfront expenses.
Fixed versus floating rates determine how your EMI behaves over time.
Existing customer concessions, for example, Bank of Maharashtra’s 0.25 per cent concession for existing borrowers, can reduce costs.
Loan tenure should match your cash flow; shorter tenures lower total interest outgo.