Best Car Loan Interest Rates in India — April 2026
Bank of Baroda and PNB offer the lowest car loan rates at 8.60–8.65% p.a. SBI starts at 8.70%, while private banks HDFC and Kotak start at 8.90%. Yes Bank is the most expensive at 9.25%. For new Maruti vehicles, SBI has a tie-up offering preferential rates. For Honda and Hyundai, check HDFC and ICICI dealer finance deals.
Last updated: April 6, 2026
Best Car Loan Banks — Ranked April 2026
#1Best pick
Bank of Baroda8.60%
Lowest rate
#2
PNB8.65%
Competitive
#3
Canara8.65%
Competitive
#4
SBI8.70%
Competitive
#5
Axis8.75%
Competitive
#6
ICICI8.80%
Competitive
#7
IDFC First8.85%
Competitive
#8
HDFC8.90%
Competitive
#9
Kotak8.90%
Highest rate
#10
Yes Bank9.25%
Highest rate
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Calculate your EMI →Frequently Asked Questions
Which bank has the lowest car loan interest rate in 2026?+
Bank of Baroda offers 8.60% for new cars, the lowest among major banks. Some OEM-linked offers from SBI (for Maruti) can be even lower during festive seasons.
How much car loan can I get on ₹50,000 monthly salary?+
Typically 48-60x monthly salary, so ₹24-30L. Banks use a Fixed Obligation to Income Ratio (FOIR) of 40-50% — all your EMIs combined should not exceed 40-50% of net salary.
Is it better to take car loan from bank or dealer?+
Banks are generally cheaper. Dealer finance (NBFCs) may seem convenient but rates are often 1-2% higher. Always compare the APR (Annual Percentage Rate) not just the monthly EMI.
Disclaimer: Rates are indicative as of April 2026 and subject to change. This is for informational purposes only. Verify with the bank before making financial decisions.