Car Loan Interest Rates 2025: Check What SBI, Axis Bank, PNB, & Others Are Offering

Car loans are a go-to option for people looking forward to bringing home their dream car or upgrading to a new model. To support such aspirations, the market offers a huge range of borrowing options and suitable financing options. Making this option even better are customized loans from lenders like the State Bank of India and Axis Bank. These are aimed at meeting the needs of customers from different income groups.

Car Loan: Interest Rate

The most important aspect of a loan from the borrower's point of view is the interest rate. In India, these rates start from 8.45 per cent per annum. Meanwhile, the repayment tenure can be extended up to 8 years. Depending on the lender, people seeking a car loan can cover up to 100 per cent of the car's on-road price.

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Car Loan: Floating vs Fixed Interest Rate

Car loan interest rates can either be fixed or floating. A fixed interest rate stays the same throughout the duration of the loan. Fixed interest rates are not impacted by changes in the interest rates set by the lender. In contrast, a floating interest rate is one that is continually adjusted in accordance with changing trends in the financial market.

Latest Car Loan Interest Rate 2025

Name of the Bank	EMI for Rs 1 lakh for 7 years	Interest Rate (p.a.)
State Bank of India	Rs 1,614 onwards	9.10% p.a. onwards
HDFC Bank	Rs 1,629 onwards	9.40% p.a. onwards (Rack Interest)
Punjab National Bank	Floating: Rs 1,584 onwards Fixed: Rs 1,634 onwards	Floating: 8.50% p.a. onwards Fixed: 9.50% p.a. onwards
Axis Bank	Rs 1,629 onwards	9.40% p.a. onwards
Bank of India	Rs 1,596 onwards	8.75% p.a.
Karnataka Bank	Rs 1,611 onwards	8.88% p.a. onwards
IDBI Bank	Floating: Rs 1,599 onwards Fixed: Rs 1,619 onwards	8.80% p.a. onwards (floating) 9.20% p.a. onwards (fixed)
Canara Bank	Rs 1,581 onwards	8.45% p.a. onwards
ICICI Bank	Rs 1,614 onwards	9.10% p.a. onwards
Indian Overseas Bank	Rs 1,589 onwards	8.60% p.a. onwards
South Indian Bank	Rs 1,596 onwards	8.75% p.a. onwards
Federal Bank of India	Rs 1,609 onwards	9.00% p.a. onwards
Union Bank of India	Rs 1,581 onwards	8.45% p.a. onwards
Bank of Baroda	Fixed: Rs 1,611 onwards Floating: Rs 1,617 onwards	Fixed: 8.80% p.a. onwards Floating: 9.15% p.a. onwards
Karur Vysya Bank	Rs 1,627 onwards	9.35% p.a. onwards

Car Loan Eligibility Criteria

The eligibility criteria for obtaining car loans can differ across banks, but the general requirements typically include certain standard conditions. Applicants should be between the ages of 18 and 75 and must have a net monthly income of at least Rs 20,000. Additionally, they are expected to have been employed with their current employer for a minimum of one year. Eligible individuals can be either self-employed or salaried professionals working for private enterprises or government agencies.