Mumbai: The festive season has begun, and banks are rolling out attractive car loan offers to woo buyers. Lenders like Bank of Baroda, HDFC Bank, Axis Bank, and Canara Bank are offering lower interest rates, discounts on processing fees, and flexible repayment options.
According to Paisabazaar, both public and private banks are offering car loans up to Rs. 10 lakh for five years, with rates ranging from 7.6% to 9.99%.
Best Bank for Car Loan 2025:
UCO Bank is currently offering the lowest rate, starting at 7.60% for loans up to Rs. 5 lakh with a five-year tenure.
Bank-Wise Car Loan Interest Rates & Charges
| Bank | Interest Rate Range | EMI (per Rs. 10 lakh, 5 yrs) | Processing Fee |
|---|---|---|---|
| UCO Bank | 7.60% onwards | Approx. Rs. 10,050 | As per bank norms |
| Union Bank of India | 7.80% – 9.70% | Rs. 10,090 – Rs. 10,550 | Up to Rs. 1,000 |
| Punjab National Bank | 7.85% – 9.70% | Rs. 10,102 – Rs. 10,550 | Up to Rs. 1,500 |
| Canara Bank | 7.70% – 11.70% | Rs. 10,067 – Rs. 11,047 | Waived till Sept 30, 2025 |
| SBI | 8.80% – 9.90% | Rs. 10,331 – Rs. 10,599 | Rs. 750 – Rs. 1,500 |
| HDFC Bank | 9.20% onwards | Rs. 10,428 onwards | 1% of loan (Rs. 3,500 – Rs. 9,000) |
What Will Decide Your Final Rate?
The actual interest rate depends on factors such as your credit score, income level, and the bank’s eligibility criteria. Offers are subject to terms and conditions, so it’s best to check with the bank directly before applying.
Extra Festive Benefits
- Existing home loan customers and long-term clients may receive an additional 0.25% discount.
- Under PSB Apna Vahan Sugam, borrowers can get up to 50% off processing fees.
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