Best Car Loan for New Car in India — April 2026
For new car purchases, Bank of Baroda (8.60%) and PNB (8.65%) are the cheapest lenders. SBI (8.70%) has OEM tie-ups with Maruti Suzuki. Private banks HDFC and ICICI offer faster disbursals. For festive offers, check manufacturer-linked finance companies like Maruti Finance, Hyundai Finance, and Toyota Financial Services.
Last updated: April 6, 2026
Best Car Loan Banks — Ranked April 2026
#1Best pick
Bank of Baroda8.60%
Lowest rate for new cars
#2
PNB8.65%
Near-lowest rate — OEM tie-ups available
#3
Canara8.65%
PSU reliability + low rate
#4
SBI8.70%
Best for Maruti buyers — OEM partnership
#5
Axis8.75%
Fast disbursal — good digital experience
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Calculate your EMI →Frequently Asked Questions
What is the best car loan interest rate in India 2026?+
Bank of Baroda offers 8.60% for new cars — the lowest among major banks. During festive season (Oct-Nov), OEM-linked offers can go as low as 7.99% for select models.
How much down payment is required for a car loan?+
Banks finance up to 85-90% of on-road price. So for a ₹15L car, you need ₹1.5-2.25L down payment. A larger down payment reduces EMI and total interest.
Should I pay more for a better car or take a longer loan?+
Avoid car loans beyond 5 years — you end up paying much more in interest and the car depreciates fast. If you cannot afford the EMI on a 5-year loan, consider a smaller car.
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.