Best Car Loans in India 2026
Car loans help you finance the purchase of new or used vehicles. Available from banks, NBFCs, and manufacturer-backed financiers, car loans offer competitive rates and tenures up to 7 years.
Top Car Loans (5 products)
Featured
SBI Car Loan
State Bank of India
★★★★★★4.4
- ✓Interest rates from 8.65%
- ✓Financing up to 100% on-road price for select models
- ✓No prepayment charges after 12 months
HDFC Bank Car Loan
HDFC Bank
★★★★★★4.3
- ✓30-minute disbursal for existing customers
- ✓Dealer tie-ups pan-India
- ✓Doorstep document collection
ICICI Bank Car Loan
ICICI Bank
★★★★★4.2
- ✓Digital application via iMobile app
- ✓Pre-approved offers for existing customers
- ✓Finance up to 100% ex-showroom price
Axis Bank Car Loan
Axis Bank
★★★★★4.1
- ✓4-hour fast-track approval
- ✓Up to 100% financing on ex-showroom price
- ✓Special lower rates for women buyers
Maruti Suzuki Smart Finance
Maruti Suzuki
★★★★★4.0
- ✓Compare offers from SBI, HDFC, ICICI, Axis, and 7+ more banks
- ✓Transparent EMI comparison tool
- ✓Integrated with Maruti dealership network
Car Loan Comparison Table
Compare interest rates, fees, and features of all car loans side by side.
| Feature | Top Rated SBI Car LoanState Bank of India ★★★★★★ | HDFC Bank Car LoanHDFC Bank ★★★★★★ | ICICI Bank Car LoanICICI Bank ★★★★★ | Axis Bank Car LoanAxis Bank ★★★★★ | Maruti Suzuki Smart FinanceMaruti Suzuki ★★★★★ |
|---|---|---|---|---|---|
| Min Interest Rate (%) | 8.65 | 8.75 | 8.75 | 9 | 8.5 |
| Max Interest Rate (%) | 9.8 | 12.5 | 11.5 | 12 | 12 |
| Processing Fee | Nil to 0.50% of loan amount | Rs 3,000 to Rs 5,000 | Up to Rs 6,000 | Rs 5,000 to Rs 7,000 | Varies by lending partner (Rs 0 to Rs 5,000) |
| EMI per Lakh | Rs 1,578 per lakh for 7 years at 8.65% | Rs 1,586 per lakh for 7 years at 8.75% | Rs 1,586 per lakh for 7 years at 8.75% | Rs 1,605 per lakh for 7 years at 9.00% | From Rs 1,567 per lakh for 7 years at 8.50% |
| Max Loan Amount | 10000000 | 10000000 | 10000000 | 10000000 | 5000000 |
| Max Tenure | 7 | 7 | 7 | 7 | 7 |
| Prepayment Charges | Nil after 12 months | 5% of outstanding principal (fixed rate) | 5% of outstanding (fixed), nil (floating after lock-in) | 5% of outstanding principal | Varies by lending partner |
| Disbursal Time | 3–5 working days | 30 minutes for pre-approved, 2–3 days for others | Instant for pre-approved, 1–3 days for others | 4 hours to 2 working days | Depends on partner bank — typically 1–3 days |
| Apply Now | Apply Now | Apply Now | Apply Now | Apply Now |
How to Apply for a Car Loan
1
Choose your car and get a price quotation from the dealer
2
Check eligibility and compare car loan offers from multiple lenders
3
Submit application with identity, income, and address proof
4
Bank verifies documents and approves the loan
5
Pay the margin money (down payment) to the dealer
6
Bank disburses the loan directly to the dealer
7
Car is registered with hypothecation in favor of the bank
Car Loan Eligibility Criteria
- ✓Age: 21 to 65 years
- ✓Minimum monthly income: Rs 15,000 to Rs 25,000
- ✓CIBIL score: 700+
- ✓Salaried, self-employed, or professional
- ✓Valid driving license (recommended)
Documents Required for Car Loan
- 📄PAN Card and Aadhaar Card
- 📄Income proof (salary slips for 3 months or ITR)
- 📄Bank statements for last 3 to 6 months
- 📄Vehicle quotation or proforma invoice from dealer
- 📄Address proof
- 📄Driving license
Car Loan FAQs
SBI currently offers the lowest car loan interest rate starting at 8.65% per annum. HDFC Bank and ICICI Bank offer rates from 8.75%. The rate depends on your profile, loan amount, and whether you choose a new or used car.
Yes, banks like SBI offer up to 100% on-road price financing for select new car models. Most other lenders finance 80% to 90% of the ex-showroom price, and you need to pay the rest as a down payment.
If you can invest the money at a return higher than the car loan interest rate, taking a loan may be financially better. Car loans also help build your credit history. However, paying cash saves you the total interest cost over the loan tenure.
Yes. For floating rate car loans, most banks charge no prepayment penalty. For fixed rate loans, expect a 2% to 5% foreclosure charge on the outstanding amount. SBI charges nil after 12 months even on floating rate car loans.