Car loan rates start at 7.6% in Nov: Check best offers and terms of lenders

Credit history, income, tenure of employment are among factors that influence the rate you'll be quoted

New car loans are available for annual interest rates starting at 7.60 per cent as of early November, according to data compiled by Paisabazaar. The equated monthly instalment (EMI) ranges from Rs 10,043 to Rs 11,699 for a loan of Rs 5 lakh to be repaid over five years, depending on the lender and fees.

 

Best car loan rates in November

 

• UCO Bank: Interest rate of 7.60 per cent, EMI Rs 10,043, and zero processing fees on all car and electric vehicles loans.
• Canara Bank: Rates begin at 7.70 per cent, EMI Rs 10,067, with a full processing-fee waiver till December 31, 2025.
• Union Bank of India: Rate range 7.80–9.70 per cent, EMI Rs 10,090–10,550, processing fee up to Rs 1,000
• HDFC Bank: Rates start at 9.20 per cent, EMI Rs 10,428 upwards, processing fee up to Rs 9,000

 

These figures are drawn from the Paisabazaar table as of November 4.

 

 

Name of Lender	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. 1,000 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 4th Nov 2025. Source: Paisabazaar.com

Wide spread in rates

 

Public and private banks: Public-sector lenders offer the most competitive rates (around 7.6–8  per cent), while many private banks are well into the 9  per cent or above territory.

 

Borrower profile matters: Your credit history, income, tenure of employment and overall debt-to-income ratio heavily influence the rate you’ll be quoted

 

Processing fee: Some banks are using fee waivers and concessions, for example, zero processing fee till end-2025 at certain public-sector banks.

 

Short-term offers: Many of the best deals are part of festival-season or limited-time campaigns and may not extend indefinitely.

 

What this means for prospective car-buyers

 

If you secure the lowest rate (7.6 per cent), the monthly burden of a Rs 5 lakh loan over five years is just Rs 10,000

 

Don’t assume the quoted “from” rate will apply to you. Always check your eligibility and whether extra costs (processing fee, tenure, and down payment) change the effective cost.

 

If you are dealing with a private-sector bank or have a less-than-ideal credit profile, expect rates closer to 9–10  per cent or more; factor that into your budget.

 

Alongside the interest rate, always compare the “all-in” cost: processing fee, possibility of foreclosure/part-payment charges, and other hidden burdens.

 

Timing matters: If a special offer is flagged “till December 2025” or similar, don’t delay beyond what might be a promo window.