What you need to know
Your credit score is the single biggest factor in the rate you get. Several banks publish score-based pricing — Union Bank charges 7.60% for 825+ but 10.00% below 650.
How banks price by score
| Lender | Credit score | Rate |
|---|---|---|
| Union Bank of India Car Loan | 825 and above | 7.60% (EBLR − 0.40%) |
| Union Bank of India Car Loan | Below 650 | 10.00% (EBLR + 2.00%) |
| SBI Car Loan | 800 and above (3 – 5 year loan) | 8.40% |
| SBI Car Loan | Lower score bands | Up to 9.35% |
| Bank of Baroda Car Loan | Minimum 701 to be eligible | 7.60% – 11.30% floating by profile |
| ICICI Bank Car Loan | Priced by CIBIL and car model | 8.40% onwards |
On ₹8,00,000 for 5 years, the gap between 7.60% and 10.00% is about ₹55,754 in extra interest.
Improve your score before applying
- Pay every EMI and card bill on time — payment history carries the most weight
- Keep credit card use below about 30% of the limit
- Avoid several loan applications in a short time; each hard enquiry is recorded
- Check your report on CIBIL, Experian, Equifax and CRIF High Mark and dispute errors
- Keep old credit cards open to lengthen history
Frequently asked questions
What is the minimum CIBIL score for a car loan?
There is no universal minimum; Bank of Baroda requires 701+, and scores of 750+ get approvals most easily.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.