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

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.