Car loan interest rate in India – In 2021

car loan interest rates in India

Car loan interest rate in India starts at as low as 7.15 percent. Check and compare interest rate from all the top Government banks, private banks and NBFC’s working in the country. In India government banks i.e. public sector banks offer you car loan with lowest interest rates. So, it is always advised to go with public sector banks if you are looking for cheapest car loan interest rate in India.

Car loan interest rate in India july 2021

#1 Car loan interest rate comparison july 2021 in Government banks

Top ten public sector banks with lowest interest rates for car loan in India.

Serial NOBank name Interest rate
1SBI car loan 7.70 %
2PNB car loan 7.30 %
3Bank of Baroda car loan 7.35 %
4Canara bank car loan 7.30 % 
5Union bank car loan 7.40 % 
6UCO bank car loan 7.70 % 
7Indian bank car loan 8.20 %
8Central bank car loan 7.25 %
9Bank of Maharashtra car loan 7.55 % 
10IOB car loan 7.55 % 
Car loan interest rate in India Table 1

Also read – collateral free loan for retail traders

#2 Car loan interest rate comparison july 2021 in Private banks

Top sixteen private sector banks for Car loan in India.

Serial NOBank nameInterest rate
1ICICI bank car loan 7.90 %
2HDFC bank car loan 7.95 %
3AXIS bank car loan 8.75 %
4IDBI bank car loan 7.50 %
5Kotak Mahindra bank car loan 11.50 %
8IDFC bank car loan 8.50 %
9Bandhan bank car loan 15.50 %
10Citi bank car loan 8.35 %
11Fedral bank car loan 8.50 %
13South Indian bank car loan 8 to 13.25 %
14KVB car loan ( Karur Vysya bank car loan )7.90 %
15Karnataka bank car loan 8.05 %
16Jammu and Kashmir bank car loan 7.95 %
Car loan interest rate in India Table 2

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#3 Car loan interest rate comparison july 2021 in NBFC’s

Top eight non banking financial company which provide car loan at lowest interest rates.

Serial NONBFC nameInterest rate
1Bajaj finance car loan 12.99 to 15.50 %
2Shriram finance vehicle loan details 11.49 to 23 %
3Muthoot finance vehicle loan 8.99 % ( begins)
4Mahindra and Mahindra finance rates are based on location of the customer ( check with nearest dealer)
5HDB car loan interest rate rates are based on location of the customer ( check with nearest dealer)
6Cholamandalam car loan check with nearest dealer
7Tata capital car loan 19 to 23 %
8L&T car loan ( Larsen and Tourbo ) 10.75 %
Car loan interest rate in India Table 3

NBFC’s usually provide loan for commercial vehicles and that too with higher rate of interest.

Get details on micro loans loan for street vendors under Prime minister Svanidhi yojana.

NOTE – NBFC stand for Non banking financial company these are like small banks which deal in giving advance to the public and accept deposit from public except demand deposit.

Interest rate is a key factor you need to understand before you apply for any loan, including car loan. Vehicle loans are currently offered at floating rates, however different banks offer the same loan at different rate of interest. Lower interest rate is preferable as compared to a higher interest rate.

In India Vehicle loan is offered by three type of organizations i.e. by public sector banks, private banks, NBFC’s. All three organizations have there on advantages and disadvantages like public sector banks offer you lower car loan interest rate in India and other two types have slightly higher vehicle loan interest rate in India. It is always recommended to go with public sector banks if you are looking for lowest car loan interest rate in India.

Rate of interest is different for new vehicle and for pre used vehicles. Usually rate of interest for pre used vehicle is one or two percent more than that of new vehicle. Different banks have different rate of interests So, always check with the banks official website for current rate of interest on new and pre used vehicle

Note – It is always better to use a car loan EMI calculator to calculate your total payout before opting for a car loan.

Disclaimer: Kindly confirm all the interest rates from official website of respective bank

FREQUENTLY ASKED QUESTIONS ON CAR LOAN INTEREST RATE IN INDIA

How can I get lowest interest rate car loan?

You can get lowest interest rate car loan in India from different bank under different schemes.
1 – Some bank offer concessional rate of interests for Government employees or to some salaried employees.
2 – If you have higher credit score / CIBIL score than some bank may offer you low interest rates on your vehicle loan.
3 – Some public sector banks offer concessional rate of interest under special drives like COMBO loan scheme, Which is offered to already existing borrowers specially home loan borrowers. But to avail car loan under this scheme your existing loan EMI should be regular for minimum period of one or two year.
4 – Female borrower have concessional interest rate in some banks like Jammu and Kashmir bank etc.

Used car loan interest rates in India?

Used car loan interest rates in India is different for pre used car purchased from Certified Car Dealer
like True Value, First Choice etc. than that purchased from other sources
For pre used vehicle banks charge almost 1 percent rate of interest extra if bought from certified car dealer and almost 2 percent extra when purchased from other source.

Does type of car affect car loan interest rates?

No, type of car have nil affect on rate of interest offered by banks.

car loan interest rate in India

 

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