Car Loan — new or used, with the EMI that suits you
Compare car loans from banks and NBFCs, including offers tied to dealers and manufacturers. Up to 100% on-road funding with select lenders.
- From 8.25% p.a.
- Up to 7 years
- New & used cars
Starting rates
at 5 lenders
- HDFC Bankfrom 8.25% p.a.
- State Bank of Indiafrom 8.4% p.a.
- ICICI Bankfrom 8.4% p.a.
- Bank of Barodafrom 8.5% p.a.
- Axis Bankfrom 8.9% p.a.
What is a car loan?
A car loan pays for a new or used car, and the car itself secures it: the lender's name is on the registration (hypothecation) until you repay. That security keeps rates lower than a personal loan's, and approval is often quick.
At a glance
- Funding
- Up to 100% of on-road price (select lenders)
- Interest rate
- 8.25%–14.26% p.a.
- Tenure
- 1–7 years
- Processing fee
- Up to 1–2% + GST
- Collateral
- The car (hypothecation)
- Approval
- Often 24–48 hours
Compare car loan interest rates
Published rates for new cars. The car's model, your credit score and the tenure decide where in the range you land.
- Lowest starting rate
- 8.25%p.a.
- Lenders listed
- 5
- Largest amount
- ₹3 crore
- HDFC BankPrivate bankLowest rateStarting from8.25% p.a.
- Rate range
- 8.25%–14.26% p.a.
- Max amount
- ₹1 crore
- Max tenure
- 7 years
- Rate type
- fixed
- Processing fee
- Lower of ₹10,000 or 0.4% of the loan
- State Bank of IndiaSBI Car LoanStarting from8.4% p.a.
- Rate range
- 8.4%–9.35% p.a.
- Max amount
- ₹1 crore
- Max tenure
- 7 years
- Rate type
- fixed
- Processing fee
- As per the bank's schedule of charges
- ICICI BankPrivate bankStarting from8.4% p.a.
- Rate range
- 8.4%–8.4% p.a.
- Max amount
- ₹1 crore
- Max tenure
- 7 years
- Rate type
- fixed
- Processing fee
- As per the bank's schedule of charges
- Bank of BarodaBaroda Car LoanStarting from8.5% p.a.
- Rate range
- 8.5%–11.2% p.a.
- Max amount
- ₹3 crore
- Max tenure
- 7 years
- Rate type
- fixed
- Processing fee
- As per the bank's schedule of charges
- Axis BankPrivate bankStarting from8.9% p.a.
- Rate range
- 8.9%–11.7% p.a.
- Max amount
- ₹1 crore
- Max tenure
- 7 years
- Rate type
- fixed
- Processing fee
- Up to 2% of loan amount + GST
Last verified 27 Sep 2026. These are the lenders' published rates and fees, and they can change without notice. Your rate depends on your credit score, income and employer, and the lender makes the final decision.
Car loan EMI calculator
Your EMI depends on the amount, the rate and the tenure. Change any of them to see the monthly payment and the total interest.
Your loan
Your monthly EMI
₹8 lakh · 5 years · 8.25% p.a.
- Principal₹8,00,000
- Interest₹1,79,020
- Total amount payable
- ₹9,79,020
We'll carry ₹8 lakh over 5 years into the form.
Example: For a loan of ₹8,00,000 at 8.25% p.a. for 5 years, the EMI is ₹16,317 and the total amount payable is ₹9,79,020 (interest ₹1,79,020), excluding processing fee and taxes.
How your balance comes down
Early payments are mostly interest. The principal falls faster in the later years.
- Outstanding principal
- Interest paid so far
Year-wise repayment schedule
| Year | Principal paid | Interest paid | Closing balance |
|---|---|---|---|
| 1 | ₹1,34,826 | ₹60,978 | ₹6,65,174 |
| 2 | ₹1,46,381 | ₹49,424 | ₹5,18,793 |
| 3 | ₹1,58,923 | ₹36,880 | ₹3,59,870 |
| 4 | ₹1,72,542 | ₹23,262 | ₹1,87,328 |
| 5 | ₹1,87,328 | ₹8,476 | ₹0 |
Monthly EMI ₹16,317. Total interest ₹1,79,020. Total payable ₹9,79,020.
Car loan eligibility
Each lender sets its own rules. These are the usual minimums, so check them before you apply.
Salaried applicants
- Age 21 to 60 at the end of the loan (varies by lender)
- Net monthly income of ₹20,000–₹30,000 or more
- At least 1 year of work experience
- Credit score of 700+
Documents for a car loan
Keep these ready before you apply. Complete documents are the quickest way to a decision.
Tick off what you already have.
What can a car loan pay for?
- A new car from a dealer
- A used car from a dealer or owner
- An electric car
- Registration and insurance (on-road price)
- Refinancing a car you already own
- A top-up on your existing car loan
How to apply for a car loan
You fill in one short form. An advisor does the comparing and stays with you until the money is in your account.
- 1
Tell us once
Share what you need and a few details about your income. Takes about two minutes.
- 2
We compare
We check your profile against the eligibility rules of our partner banks and NBFCs and shortlist the ones likely to say yes, at the best rate.
- 3
You choose
We walk you through the shortlisted offers: rate, fees, EMI, and the fine print. No pressure to pick any of them.
- 4
We stay till disbursal
Your advisor collects documents, coordinates with the bank and keeps you updated until the loan is disbursed.
What decides your car loan rate
750+credit score usually gets the lowest band
- New or used
- Used-car loans cost more: the car is worth less and loses value faster.
- Credit score
- Many banks price car loans in score bands; 750+ gets the lowest.
- Tenure
- Some lenders charge a little more for loans under 3 years or over 5.
- The model
- Lenders and manufacturers run tie-ups that lower the rate on particular cars.
- Your bank
- Salary-account holders often get pre-approved offers and a small discount.
How to get a lower rate
- 1Compare the dealer's financing offer with a bank's. Dealer schemes aren't always the cheapest.
- 2Put down 15–20% if you can. It cuts the rate at some lenders and the interest at all.
- 3Pick the shortest tenure your budget allows; cars lose value faster than a 7-year loan shrinks.
- 4Ask about lower rates for electric cars.
- 5Check the processing fee and foreclosure charges alongside the rate.
New car loan or used car loan: what's different?
A used-car loan costs more and runs shorter, because the car is worth less and loses value faster.
Rates from
- New car
- 8.25% p.a.
- Used car
- Usually 1–5 points higher
Funding
- New car
- Up to 90–100% of on-road price
- Used car
- Up to 70–90% of the valuation
Tenure
- New car
- Up to 7 years
- Used car
- Up to 5 years, less for older cars
Paperwork
- New car
- Dealer's proforma invoice
- Used car
- RC, valuation and insurance
Types of car loans
- New car loan
- Used car loan
- Car loan top-up
- Car loan balance transfer
- Commercial vehicle loan
We are here to answer
all your questions
Often 10–20% of the on-road price, and nothing with lenders who fund 100%. A larger down payment lowers your EMI and interest.
Most lenders want the car to be no more than 8–10 years old when the loan ends.
Yes. The car must carry comprehensive insurance with the lender named, for as long as the loan runs.
The lender gives you a no-objection certificate. You submit it with Form 35 at the RTO to remove the hypothecation from your RC.
Yes, usually after 6–12 EMIs. Fixed-rate car loans can carry a charge of up to 5% of what you prepay.
Several banks offer a slightly lower rate on electric cars. Ask for it; it isn't always applied automatically.
Yes. A spouse or parent with income raises the amount you qualify for.
Yes, with 2 years of ITRs and bank statements. Some lenders also offer loans without income proof to existing customers.
Ready to see which car loan offers you qualify for?
Takes two minutes. No impact on your credit score.