Quick Answer
Car loan rates in 2026 range from 8.70% to 12.50% for new cars and 12-16% for used cars. SBI and HDFC lead on new-car pricing; Kotak and Axis are strongest on used-car financing and digital journeys.
Last updated: 2026-04-06 · 5 picks · Category: Loans
Ranking weights: interest rate for new cars (25%), used-car rate and eligibility (20%), LTV flexibility (15%), processing fee (15%), disbursal speed (15%), and dealer network integration (10%). Rates are for CIBIL 780+ salaried borrowers financing a passenger vehicle.
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Best for
Buyers optimising for absolute lowest EMI on a new car
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Buyers who value dealer-room convenience
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Best for
EV buyers and ICICI salary-account holders
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Best for
Used-car buyers looking at cars up to 5 years old
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Used-car and first-time buyers in non-metro cities
SBI offers the lowest advertised car loan rate at 8.70% for prime salaried borrowers, followed by HDFC at 8.90% and ICICI at 8.95%. Final rate depends on CIBIL score, car model, and any ongoing manufacturer tie-ups.
Yes, in almost every case. Dealer or in-house NBFC financing often looks attractive with flat-rate teasers, but the effective APR is usually 2-5 percentage points higher than a direct bank car loan. Always negotiate using the bank rate as a benchmark.
Most banks finance 80-90% of the on-road price. A 10-20% down payment from your own funds is standard. Some lenders offer 100% on-road financing for select models, but this usually comes with a higher interest rate.
Floating-rate car loans from most public and private banks have zero foreclosure charges for individual borrowers. Fixed-rate loans and NBFC-funded loans may charge 3-5% of the outstanding principal.
Disclosure: Rankings based on publicly available data as of April 2026. Rates and terms change; verify with the provider. CalcCrack may earn a commission from some links at no cost to you.