Mumbai: The festive season has started, and this is the time when people usually buy big things like cars. To make it easier, many banks such as Bank of Baroda, HDFC Bank, Axis Bank, and Canara Bank have announced attractive car loan offers. These include lower interest rates, discounts on processing fees, and long 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 percent to 9.99 percent.
Which bank is offering the lowest rate?
Among public sector banks, UCO Bank is giving the lowest interest rates. It offers loans starting from 7.60 percent for up to Rs 5 lakh with a five-year tenure. Private lenders like ICICI Bank and HDFC Bank generally have higher starting rates.
What will decide your final rate?
The final interest rate for any applicant will depend on their credit score, income, and the bank’s eligibility rules. Offers are also subject to terms and conditions, so applicants should always check directly with banks before applying.
Bank-wise interest rates and charges (examples)
Union Bank of India: 7.80 percent–9.70 percent, EMI Rs 10,090–Rs 10,550, processing fee up to Rs 1,000
Punjab National Bank: 7.85 percent–9.70 percent, EMI Rs 10,102– Rs 10,550, processing fee up to Rs 1,500
Canara Bank: 7.70 percent–11.70 percent, EMI Rs 10,067–Rs 11,047, processing fee waived till Sept 30, 2025
SBI: 8.80 percent–9.90 percent, EMI Rs 10,331–Rs 10,599, processing fee Rs 750–Rs 1,500
HDFC Bank: 9.20 percent onwards, EMI Rs 10,428 onwards, processing fee 1 percent (Rs 3,500–Rs 9,000)
(Many other banks also offering similar festive discounts).
Extra benefits
- Existing home loan customers and long-term clients may get an extra 0.25 percent discount.
- Under PSB Apna Vahan Sugam, borrowers can get up to 50 percent off on processing fees.
