Car Loans from 7.35%

What is a car loan in India?

Car loans are secured against the vehicle itself. Rates start at 8.55% (Bank of Baroda) for new cars with a strong CIBIL score and move up to 18% for NBFC-funded used cars. Most lenders finance 80-90% of on-road price; SBI’s promotional periods push this to 90% with zero processing fee. Tenures run 12-84 months, with 60 months being the sweet spot — longer tenures lower the EMI but inflate total interest significantly.

How to choose the best car loan

• ✓For new cars, start with your salary-account bank — internal customers get the fastest approval and the best rate.
• ✓For used cars, NBFCs like Mahindra Finance and Tata Capital accept older vehicles and tier 2/3 buyers that banks often decline.
• ✓Zero-down-payment offers are rarely free — the rate is typically 0.5-1% higher to compensate. Run the total-cost math.
• ✓Check EV-specific preferential rates — Bank of Baroda and Canara Bank offer 0.25-0.5% lower rates for electric vehicles.

Want to calculate EMI for a specific loan amount and tenure? Use our EMI calculator. Looking for a different loan type? See our full loans hub.

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