Car Loan Lowest Interest Rates 2024

In today's world, a vehicle has become a necessity. Earlier, it was known to be a luxury item, but now it is the need of time. To purchase a four wheeler is yet another expense for the person who has a dream of owning a car. As a comfortable means of transport or as a status symbol in society, one deserves ownership of a car.

Now you no longer have to wait to buy your dream car because almost all the banks offer easy car loan upto 100% of value of the car. Car Loan is a perfect solution to fulfil your dream. You can get best car loan offers with lowest interest rates starting at 9.95%, having loan tenure up to 7 years with faster approvals and doorstep services.

Loan for cars ranges from small & compact cars to super premium cars, SUVs and MUVs. Car loan schemes of each bank differ in terms of interest rates and other factors like maximum loan amount, loan tenure, EMI, processing fees and prepayment fees. There are lots of benefits which are now available to the customer when availing of a car loan such as preferred pricing for existing customers, less documentation, plenty of repayment options, door-step service, faster processing time, etc. Some lenders even offer special rates of interest to their existing customers and those having good credit score.

To get Car Loan with lowest interest rate and lowest EMI, you are advised to compare interest rates and offers of all banks before making a final decision.

Car Loan at lower Interest Rate Feb 2023

BankInterest RatePer Lac EMITenureMax. Loan Amount
Andhra Bank 8.85% to 13%₹ 1601Max. 84 EMIMaximum finance would be 90% for new car and 60% for pre-used car on the on Road Price with no ceiling on maximum loan amount for new cars and for old 4-wheelers (not older than 3 years), maximum loan amount is Rs.20 Lakh.
Corporation Bank 8.85% to 13%₹ 1601Max. 84 EMIMaximum finance would be 90% for new car and 60% for pre-used car on the on Road Price with no ceiling on maximum loan amount for new cars and for old 4-wheelers (not older than 3 years), maximum loan amount is Rs.20 Lakh.
Union Bank Of India 8.85% to 13%₹ 1601Max. 84 EMIMaximum finance would be 90% for new car and 60% for pre-used car on the on Road Price with no ceiling on maximum loan amount for new cars and for old 4-wheelers (not older than 3 years), maximum loan amount is Rs.20 Lakh.
Laxmi Vilas Bank10.05% to 12.80%₹ 1855Max. 72 EMIUpto 85% of the car value. The maximum loan amount is Rs. 25,00,000 for a new car and Rs. 10,00,000 for a used car
Tamilnad Mercantile Bank Limited10.60% to 12.10%₹ 1691Max. 84 EMIMaximum Rs. 1.5 Crore for new cars and Rs. 15 lakh for used car
Dcb Bank Limited11.01% to 11.14%₹ 1713Max. 84 EMIMaximum Rs. 30 lakh
South Indian Bank11.65% to 17.60%₹ 1747Max. 84 EMIMax. Rs. 1 Crore for new car and max. Rs. 50 lakh for used car
City Union Bank Limited12.25% to 12.75%₹ 2237Maximum 5 yearsMaximum of Rs. 25 Lakh
Kotak Mahindra Bank Limited7.70% to 25%₹ 1544Max. 84 EMIUpto 90% of the car value. The minimum loan amount is Rs. 75,000
Hdfc Bank7.90% to 11%₹ 1554Max. 84 EMIMaximum upto Rs. 10 Crore on a wide range of cars and multi-utility vehicles
Allahabad Bank8.60% to 12.90%₹ 1589Max. 84 EMIFor New Car: Maximum loan ceiling is Rs. 2 Crore
For Used Car: Maximum loan ceiling is Rs. 1 Crore
Indian Bank8.60% to 12.90%₹ 1589Max. 84 EMIFor New Car: Maximum loan ceiling is Rs. 2 Crore
For Used Car: Maximum loan ceiling is Rs. 1 Crore
State Bank Of India8.60% to 14.75%₹ 1589Max. 84 EMINew Car - The loan will be given on individual basis looking into applicant's income and repayment capacity.
Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc.
Bharatiya Mahila Bank Limited8.60% to 14.75%₹ 1589Max. 84 EMINew Car - The loan will be given on individual basis looking into applicant's income and repayment capacity.
Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc.
State Bank Of Mysore8.60% to 14.75%₹ 1589Max. 84 EMINew Car - The loan will be given on individual basis looking into applicant's income and repayment capacity.
Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc.
State Bank Of Hyderabad8.60% to 14.75%₹ 1589Max. 84 EMINew Car - The loan will be given on individual basis looking into applicant's income and repayment capacity.
Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc.
State Bank Of Patiala8.60% to 14.75%₹ 1589Max. 84 EMINew Car - The loan will be given on individual basis looking into applicant's income and repayment capacity.
Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc.
State Bank Of Travancore8.60% to 14.75%₹ 1589Max. 84 EMINew Car - The loan will be given on individual basis looking into applicant's income and repayment capacity.
Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc.
State Bank Of Bikaner And Jaipur8.60% to 14.75%₹ 1589Max. 84 EMINew Car - The loan will be given on individual basis looking into applicant's income and repayment capacity.
Pre-owned Car - Maximum 48 times of the Net Monthly Income for salaried applicants and 4 times Net Profit or Gross Taxable income for Professionals, Self-employed, Businessmen, proprietary/partnership firms, etc.
Bank Of Baroda8.70% to 11.15%₹ 1594Max. 84 EMIMaximum Rs. 5 Crore
Dena Bank8.70% to 11.15%₹ 1594Max. 84 EMIMaximum Rs. 5 Crore
Vijaya Bank8.70% to 11.15%₹ 1594Max. 84 EMIMaximum Rs. 5 Crore
Idbi Bank8.75% - 9.45%₹ 1596Max. 84 EMIThe loan will be given on individual basis looking into applicant's income and repayment capacity. There is no ceiling on maximum loan amount
Oriental Bank Of Commerce8.75% to 10.60%₹ 1596Max. 84 EMIFor individuals/Proprietorship concerns: Rs. 1 Crore or 25 times of Gross Monthly Salary |Pension | Income, whichever is lower.
For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles).
Punjab National Bank8.75% to 10.60%₹ 1596Max. 84 EMIFor individuals/Proprietorship concerns: Rs. 1 Crore or 25 times of Gross Monthly Salary |Pension | Income, whichever is lower.
For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles).
United Bank Of India8.75% to 10.60%₹ 1596Max. 84 EMIFor individuals/Proprietorship concerns: Rs. 1 Crore or 25 times of Gross Monthly Salary |Pension | Income, whichever is lower.
For Business Concerns (Corporate or Non-Corporate): No ceiling of loan amount (for one or more vehicles).
Axis Bank8.75%-13.80%₹ 1596Max. 84 EMIMinimum - Rs. 1,00,000
Maximum - Upto 85% on-road funding
Bank Of India8.85% onwards₹ 1601Max. 84 EMIMaximum Rs. 50 lakh
Indian Overseas Bank8.85% to 10.05%₹ 1601Max. 84 EMINew car - Upto 90% of the cost of the car.
Used car - Upto 75% of the market value of the car.
Icici Bank Limited8.85% to 11.25%₹ 1601Maximum 7 yearsLoan up to 90% to 100% of ex-showroom price and Pre-Qualified Car Loans for existing customers
Federal Bank8.85% to 16.30%Contact Bank Branch
Uco Bank8.90% to 10.55%₹ 1604Max. 84 EMINew Car - Maximum finance would be 85% of the on Road Price i.e. Ex Show Room Price+ Cost of Registration +One Time Road Tax+ Insurance(one time) with no ceiling on maximum loan amount.
Pre-used Car - Maximum upto Rs 15 lakh.
Canara Bank8.90% to 11.95%₹ 1604Max. 84 EMIThe loan will be given on individual basis looking into applicant's income and repayment capacity. There is no ceiling on maximum loan amount
Syndicate Bank8.90% to 11.95%₹ 1604Max. 84 EMIThe loan will be given on individual basis looking into applicant's income and repayment capacity. There is no ceiling on maximum loan amount
The Nainital Bank Limited8.90% to 12.50% ₹ 1604Maximum 7 yearsMax. Rs.100 lakhs
Bank Of Maharashtra8.90% to 13%₹ 1604Max. 84 EMI36 times of net monthly salary and 90% of the cost of car value depending on the repaying capacity
Indusind Bank8% onwards₹ 2028Max. 60 EMI85% of the ex-showroom price of the vehicle which varies depending on the model. Loan quantum is also dependent on the profile and income of the customer.
Catholic Syrian Bank Limited8% to 10.75%₹ 2162Max. 60 EMI80% of on the road cost including Invoice price, Road tax, Insurance Premium and Registration charges (subject to income wise eligibility)
Punjab And Sind Bank9.05% to 11.952.20%₹ 1611Max. 84 EMIFor Individuals & Proprietorship concerns: No maximum ceiling on amount of loan.
For business concerns: Max. Upto 5 times the average annual cash accruals.
Central Bank Of India9.25% to 10.15%₹ 1622Max. 84 EMINew Four Wheeler- max. upto Rs.200 Lakh(Indian/Foreign made Vehicle)
Old|Second Four Wheeler Vehicle - max. Upto Rs.10.00 lakh
Karur Vysya Bank9.35% to 13.50%₹ 1627Max. 84 EMI60% to 90% of on the road cost of the car (subject to income wise eligibility)
Karnataka Bank Limited9.41% to 11.73%₹ 1630Max. 84 EMINew Car - Up to 85% of on road price including cost of vehicle+Road tax+Insurance +Registration charges, subject to a maximum of Rs.75.00 Lakh Used Car - Maximum of Rs.20 lakh
Dhanalakshmi Bank9.60% to 10.20%₹ 1640Max. 84 EMI for new cars and max. 60 EMI for used cars
Jammu And Kashmir Bank Limited9.85%₹ 1652Max. 84 EMI for new cars and max. 60 EMI for used carsCost of vehicle less by stipulated margin subject to repayment capacity

Car Loan Eligibility

  1. Age: 21 to 60 years.
  2. Income Salaried : A minimum annual income of Rs. 1,80,000 is required
  3. Income Self-employed : A minimum annual income of Rs. 1,80,000 is needed
  4. Job/Business Salaried : Work experience of atleast 2 years with a minimum of 1 year with the current employer
  5. Job/Business Self-employed : A minimum of 2 years in the same line of business is needed
  6. Permanent employees of State/Central Govt., Public Sector Undertakings, Corporations, Private Sector Companies and reputed establishments.
  7. Professionals, self-employed and others who are income tax assessees and persons engaged in agriculture and allied activities.

Important Link About Car Loan

Important Points to Consider before Applying for Car Loan

(1) Choose the Best Lender

This is the most significant point as there are many lenders offering you a car loan but you should pay attention in choosing the best one among them who is offering you the desired loan amount at the lowest interest rate and very fast too.

You can get the help of online marketplace like codeforbanks.com to compare the various car loan offerings.

(2) Check your Credit Score beforehand

You must not forget to check your latest Credit Score before applying for car loan. It is very important to check it as it gives you opportunity to bargain with the lender, if you carry a decent credit score.

(3) Never Over Shop for the Car Loan

Always remember as to not to apply for the loan amount which you cannot afford to repay conveniently.

Mistakes to Avoid While Opting for a Car Loan

When we want to buy a car then we do proper research and homework to select the best car which we can afford. In the similar way, we should do through homework while opting for a Car Loan. We must avoid following mistakes while we are opting for Car Loan:

(1) Availing 100% Car Financing: You must not take a car loan of 100% of the value of a car but you should give some down payment. Nil down payment simply means that you will increase your interest cost as you have to pay more EMIs in future because you have not given any contribution from your side as a down payment for buying your Car. Try making a significant down payment to keep the overall cost of your car loan to a minimum.

(2) Selecting Longer Tenure of Car Loan: You must see as to how much maximum amount of EMI can you pay comfortably. If you are able to pay more EMIs then go for shorter tenure car loan as it will save your interest outgo to a large extent.

(3) Not Comparing Interest Rate of Different Lenders: You must compare the interest rates on car loan offered by different lenders before applying for car loan from any particular lender. Little difference in interest rate results into a lot of saving towards interest outgo in future for you.

(4) Not Checking Other Costs: You must explore other charges & fees involved in availing the loan. These costs include Loan Processing Fee, Administration Chares, Pre-payment Penalty, etc.