Top Banks for Car Loans in India 2026
SBI, HDFC, ICICI, Axis, Canara, PNB, Bank of Baroda and Union Bank compared on rate, fee, funding, tenure and foreclosure.
Updated 30 September 2026 · 8 lenders trackedWhat you need to know
Public-sector banks now lead on price because their car loans are linked to the repo rate (5.25%) — PNB, Bank of Baroda and Union Bank start at 7.60% and Canara’s official range starts at 7.45%. Private banks such as HDFC, ICICI and Axis compete on speed, dealer tie-ups and 100% on-road funding but usually charge a fixed rate with foreclosure fees.
All banks compared
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| Canara Bank Car LoanPublic sector bank | 7.45% – 15.00% | 0.25% of loan (min ₹1,000, max ₹5,000) + GST; 50% waiver from 1 Jul to 30 Sep 2026 | Up to 84 months (7 years) | ₹2,001 | 12 Dec 2025 (official range) |
| Bank of Baroda Car LoanPublic sector bank | 7.60% – 11.30% | Up to ₹10 lakh: ₹1,500 + GST; above ₹10 lakh: ₹2,000 + GST; ₹500 + GST for government / PSU employees | Up to 84 months (7 years) | ₹2,009 | Sep 2026 (official page, undated) |
| PNB Car LoanPublic sector bank | 7.60% – 9.70% | 0.25% of loan (min ₹1,000, max ₹1,500) + GST | Up to 84 EMIs (7 years) | ₹2,009 | Sep 2026 (aggregator; RLLR 1 Jul 2026) |
| Union Bank of India Car LoanPublic sector bank | 7.60% – 10.00% | ₹1,000 + GST (aggregator); often waived for electric vehicles | Up to 84 months (7 years) | ₹2,009 | 24 Jul 2026 |
| HDFC Bank Car LoanPrivate sector bank | 8.15% onwards | Up to 0.5% of loan (min ₹3,500, max ₹8,000) per BankBazaar; ClearTax shows 1% (min ₹3,500, max ₹9,000) — plus GST | 12 – 84 months | ₹2,035 | 18 Aug 2026 (aggregator) |
| ICICI Bank Car LoanPrivate sector bank | 8.40% onwards | Up to ₹8,500 + GST | 12 – 84 months | ₹2,047 | 1 Jun 2026 |
| SBI Car LoanPublic sector bank | 8.40% – 9.35% | Up to ₹5 lakh: ₹500 (salaried) / ₹750 (others); ₹5 – 10 lakh: ₹1,000 / ₹1,250; above ₹10 lakh: ₹1,500 / ₹2,000 — all + GST | Up to 7 years (Green Car Loan up to 8 years) | ₹2,047 | 16 Sep 2026 |
| Axis Bank Car LoanPrivate sector bank | 8.95% – 11.75% | ₹3,500 – ₹5,500 + GST | 12 – 96 months (up to 8 years) | ₹2,073 | Sep 2026 (aggregator) |
* At the lowest rate for 5 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
Rate type and prepayment by bank
| Lender | Rate type | Prepayment / foreclosure |
|---|---|---|
| SBI Car Loan | MCLR-linked (3-month MCLR 8.25%) | No prepayment charge; foreclosure charge waived after 2 years |
| Canara Bank Car Loan | Repo-linked (RLLR 8.00%) | No prepayment penalty |
| PNB Car Loan | Floating (RLLR 8.10%) or fixed | Floating nil; fixed 2% |
| Bank of Baroda Car Loan | Floating (BRLLR) or fixed | Floating nil; fixed 2% above ₹40,000 in first 2 years |
| Union Bank of India Car Loan | Floating (EBLR 8.00%) | Nil |
| HDFC Bank Car Loan | Fixed | 6% / 5% / 3% by loan age |
| ICICI Bank Car Loan | Fixed | 3% / 2%, nil after 24 months |
| Axis Bank Car Loan | Fixed | 5% |
Which bank suits whom
Union Bank (CIBIL 825+), PNB and Bank of Baroda floating from 7.60%; Canara from 7.45% (official range).
HDFC Bank, ICICI Bank and Axis Bank have wide dealer tie-ups and pre-approved offers.
SBI Green Car Loan (25 bps off, 8 years) or Union Green Miles (from 7.50%).
Floating-rate PSU loans — no foreclosure charge for individuals.
Lender types
| Lender type | Lenders tracked | Range of starting rates |
|---|---|---|
| Public sector bank | 5 | 7.45% – 8.40% |
| Private sector bank | 3 | 8.15% – 8.95% |
Special schemes
| Lender | Scheme / feature | Details |
|---|---|---|
| Canara Bank Car Loan | Green vehicle loan | Separate lower rates for electric vehicles |
| Canara Bank Car Loan | Women borrowers | 0.05% concession (aggregator) |
| Canara Bank Car Loan | Fee offer | 50% processing-fee waiver till 30 Sep 2026 |
| Bank of Baroda Car Loan | Home loan customers | 0.25% rate concession for existing Bank of Baroda home-loan borrowers |
| Bank of Baroda Car Loan | Group Credit Life Insurance | 0.05% lower rate if you opt for GCLI |
| Bank of Baroda Car Loan | bob Digital Car Loan | Online journey with up to 93% funding |
| PNB Car Loan | PNB Digi Car Loan | Online application and sanction |
| PNB Car Loan | PNB Pride car loan | Scheme for eligible PNB Pride customers (government employees) |
| Union Bank of India Car Loan | Union Green Miles (EV) | 7.50% – 9.90% for electric cars |
| HDFC Bank Car Loan | EV car loan | Finance for electric cars |
| HDFC Bank Car Loan | Loan against car | Borrow against a car you already own |
| ICICI Bank Car Loan | Pre-approved car loans | Instant offers for eligible ICICI Bank customers |
| ICICI Bank Car Loan | Pre-owned car loan | Separate used-car product from 9.75% onwards |
| SBI Car Loan | SBI Green Car Loan (EV) | 8.30% – 9.35% — a 25 bps concession for electric cars, up to 100% on-road funding, 3 – 8 years |
| SBI Car Loan | Loyalty Car Loan | 8.35% – 9.30% for eligible existing SBI customers |
| SBI Car Loan | Assured Car Loan | 8.40% – 9.35% |
| SBI Car Loan | NRI Car Loan | 8.40% – 9.35% for non-resident Indians |
| SBI Car Loan | Flexi Pay | Lower EMIs in the early part of the loan |
| Axis Bank Car Loan | 8-year tenure | Lowers the EMI, but raises total interest sharply |
Frequently asked questions
Is a PSU bank car loan always cheaper?
Starting rates are lower, but only for strong credit scores. Compare the APR in each KFS, which includes fees.
Why do sources show different rates for the same bank?
Banks revise rates with benchmarks; aggregators may show older or rack rates. We list the date and source on each bank page.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.