Latest car loan rates in October: 7.6%-14.25% interest and EMIs from ₹10k+

Check latest car loan rates here across the sector. EMIs starting around Rs 10,000 for a Rs 5 lakh, 5-year loan.

Those planning to take a car loan now have a wide range of options, with banks offering competitive interest rates and varied processing fee structures. According to PaisaBazaar.com, rates for a standard five-year car loan of Rs 5 lakh vary significantly across lenders. Here’s a closer look.

 

Latest car loan rates in October 

The interest rates on car loans from public and private sector banks currently range from 7.60 per cent to over 14 per cent per annum. UCO Bank leads with one of the lowest rates at 7.60 per cent, followed closely by Canara Bank (7.70 per cent) and Bank of Maharashtra (7.70 per cent). On the higher side, Punjab and Sind Bank charges up to 14.25 per cent for certain borrowers.

 

 

EMIs for a five-year Rs 5 lakh loan start from around Rs 10,043 (UCO Bank) and can go above Rs 11,699 (Punjab and Sind Bank). State Bank of India, India’s largest lender, offers a flat rate of 8.75 per cent, translating to an EMI of Rs 10,319.

 

Processing fees and special offers

Processing fees also differ widely. Several banks such as UCO Bank and SBI currently waive fees entirely for car loans, while others charge a percentage of the loan amount, ranging from 0.25 per cent to 2 per cent. Canara Bank and Bank of Maharashtra are offering limited-time concessions on fees, valid till the end of 2025.

 

Private lenders like ICICI Bank, HDFC Bank, and IDFC FIRST Bank tend to charge higher processing fees, often up to 2 per cent of the loan amount, though they also provide faster approval and flexible repayment options.

The latest car loan rate table in October 

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 car & electric vehicle loans till 31.10.2025

State Bank of India 8.75 10,319 NIL IDBI Bank 8.30-9.15 10,210 - 10,416 NIL till 31.10.2025 Bank of Maharashtra* 7.70-12.00 10,067 - 11,122

Up to 0.25% of the loan amount (max. up to Rs. 15,000)  No processing fee under festive offer)

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 8.97-11.66 10,372 - 11,037 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 0.50% of loan amount (Rs. 2,000 - Rs. 20,000)  (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 22nd October 2025. Source: Paisabazaar.com  

Choosing the right lender

For buyers, the final choice should balance interest rates, EMIs, and processing charges. Those looking for a low upfront cost might prefer banks waiving processing fees, while others prioritising lower long-term interest could opt for lenders with lower rate bands.

 

Key takeaways

 

Public sector banks still offer competitive rates and EMI options.

 

• Private banks offer convenience and quicker disbursal but at slightly higher costs.
• Seasonal and festival offers can significantly reduce processing fees, so timing the loan application could save borrowers a substantial amount.
• For anyone planning to buy a car in India, it pays to compare multiple offers carefully, factoring in interest rate, EMI, processing fees, and tenure before committing to a lender.