SBI vs Bank of Baroda Car Loan — Which is Better in 2026?

SBI Car Loan rate is 8.70% vs Bank of Baroda at 8.60%. Bank of Baroda offers a lower rate, saving you approximately ₹191/month on a ₹10L 7-year loan. Over the full tenure, this adds up to significant savings — use our EMI calculator below to get your exact figures.

Last updated: April 6, 2026

SBI

8.70%

Interest rate p.a.

Bank of Baroda

8.60%

Interest rate p.a.

✓ Better deal

SBI vs Bank of Baroda Car Loan — Detailed Comparison

Interest Rate

SBI

8.70%

Bank of Baroda

8.60%

Processing Fee

SBI

0.50% (max ₹15,000)

Bank of Baroda

0.50% + GST

Tenure

SBI

1 – 7 years

Bank of Baroda

1 – 7 years

Eligibility

SBI

Salaried/self-employed, 21-67 yrs, min ₹2L/year income

Bank of Baroda

Salaried/self-employed, 21-67 yrs, min ₹2L/year income

Verdict

Bank of Baroda offers a lower car loan rate (8.60%) vs SBI (8.70%). For new cars, OEM tie-ups (Maruti with SBI, Hyundai with HDFC) can offer 0% for short tenures. For used cars, rates are 2-3% higher. Always negotiate the on-road price separately from the loan to avoid hidden mark-ups.

Calculate Your Exact EMI

Compare SBI vs Bank of Baroda EMI for your exact loan amount and tenure

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Frequently Asked Questions

Which bank is better for car loan — SBI or Bank of Baroda?+
Bank of Baroda offers a lower car loan rate (8.60%). On a ₹10L, 7-year loan, this saves roughly ₹191/month vs SBI. Also check if the dealer has a preferred lender tie-up that offers a lower rate.
What percentage of car value can I get as a loan from SBI?+
Most banks including SBI finance up to 85-90% of the on-road price for new cars. For used cars, the LTV is typically 70-80%. A larger down payment reduces your EMI and total interest outgo.
Can I prepay my car loan without penalty at SBI or Bank of Baroda?+
Prepayment charges vary. For floating-rate car loans, RBI has restricted prepayment penalties. For fixed-rate loans, banks may charge 2-5% of the outstanding balance. Check your loan agreement before prepaying.

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Disclaimer: Interest rates shown are indicative as of April 2026 and subject to change without notice. Actual rates depend on your credit score, income, and bank policy. This is for informational purposes only and does not constitute financial advice. Always verify rates with the bank before applying.