Lowest car loan rates: Compare top banks for a Rs 10 lakh loan

When seeking a car loan, explore multiple avenues like banks, loan aggregator websites, and more, beyond dealership offers, to find the best rates and terms tailored to your needs.

Data from BankBazaar.com reveals that for a new car loan of Rs 10 lakh for a tenure of five years, public and private banks offer interest rates ranging from 7.85 percent to 9.99 percent, as of October 27. These are indicative rates, and the actual rates may vary because of the customer's credit profile, income, etc.

Public sector lender Punjab National Bank charges 7.85 percent for a new car loan of Rs 10 lakh for a five-yeas tenure. The EMI works out to Rs 20,205.

Union Bank of India offers a Rs 10 lakh new car loan at 7.90 percent interest for 5 years, with an EMI of Rs 20,229.

IDBI Bank offers a Rs 10 lakh new car loan at 7.95 percent interest for five years with an EMI of Rs 20,252.

Bank of Baroda charges 8.15 percent for a new car loan of Rs 10 lakh for a five-year tenure. The EMI comes to Rs 20,348.

Canara Bank offers a Rs 10 lakh new car loan at 8.20 percent interest for 5 years, with an EMI of Rs 20,372.

ICICI Bank charges 8.5 percent for a five-year tenure. The EMI comes to Rs 20,517.

The State Bank of India, India’s largest bank, levies an interest rate of 8.75 percent on a new car loan of Rs 10 lakh with a five-year tenure. The EMI comes to Rs 20,638.

Axis Bank charges 8.8 percent for a five-year tenure. The EMI comes to Rs 20,661.

HDFC Bank charges 9.4 percent. The EMI comes to Rs 20,953. It’s a rack interest rate — it varies depending on loan amount, tenure and credit score.

IDFC First Bank offers a Rs 10 lakh new car loan at 9.99 percent interest for five years, with an EMI of Rs 21,242.