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Car loan interest rates for May 2024: Latest car loan interest rates of top 18 banks

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Sneha Kulkarni

, ET OnlineLast Updated: May 16, 2024, 10:28:00 AM IST

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Latest car loan interest rates: The EMIs you pay on the loan will vary significantly depending on the interest rate. You might be able to work out a better deal and get a cheaper interest rate if you have good credit. List of car loan interest rates offered by 18 banks in 2024.

car loann — Latest car loan interest rates of top 18 banks.

The majority of car buyers finance their purchase with a loan. Since the price of cars has been rising recently, it is now essential to plan your purchase in advance, and getting a loan is a good first step. Some banks allows you to avail of zero-downpayment Car Loans. For select cars, the bank provides 100% financing of the on-road price of your car. This eliminates the burden of a downpayment.

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Interest rate offered by the bank
The EMIs you pay on the loan will vary significantly depending on the interest rate. You might be able to work out a better deal and get a cheaper interest rate if you have good credit. Prior to completing the loan, compare the interest rates that different banks are offering. A reduced interest rate results in a decreased monthly outflow because of the lower EMI.

List of car loan interest rates offered by 18 banks in 2024

NEW CAR LOAN-RATES AND CHARGES
Name of Lender	Interest rate (%)	EMI (Rs)	Processing fee
Union Bank of India	8.70 - 10.45	10,307 - 10,735	Rs 1,000
Punjab National Bank	8.75 - 10.60	10,319 - 10,772	0.25% (Rs. 1,000 - Rs. 1,500)
Bank of Baroda	8.85 - 12.70	10,343 - 11,300	Up to Rs 2,000
Canara Bank	8.70 - 12.70	10,307 - 11,300	0.25% (Maximum Rs 2,500)
Bank of India	8.85 - 10.85	10,343 - 10,834	0.25% (Rs. 1,000 - Rs. 5,000)
UCO Bank	8.45 - 10.55	10,246 - 10,759	Nil
State Bank of India	8.75 - 9.80	10,319 - 10,554	Up to Rs 1,500
IDBI Bank	8.80 - 9.60	10,331 - 10,525	Rs 2,500
Bank of Maharashtra*	8.70 - 13.00	10,307 - 11,377	0.25% (Rs. 1,000 - Rs. 15,000)
Indian Overseas Bank**	8.85 - 12.00	10,343 - 11,122	0.50% (Rs 500 - Rs 5,000)
ICICI Bank	9.10 onwards	10,403 onwards	Up to 2%
HDFC Bank	9.20 onwards	10,428 onwards	0.50% (Rs 3,500 - Rs 8,000)
Karnataka Bank	8.88 - 11.37	10,350 - 10,964	0.60% (Rs 3,000 - Rs 11,000)
Federal Bank	8.85 onwards	10,343 onwards	Rs 2,000 - Rs 4,500
Punjab and Sind Bank***	8.85 - 10.25	10,343 - 10,685	0.25% (Rs. 1,000 - Rs. 15,000)
South Indian Bank	8.75 onwards	10,319 onwards	0.75% (Max: Rs 10,000)
IDFC First Bank	9.75 onwards	10,562 onwards	Up to Rs 10,000
City Union Bank	14.45 - 14.95	11,751 - 11,882	1.25% (Min: Rs 1,000)
*0.25% interest rate concession for existing housing loan borrowers and corporate salary account holders.
**0.50% interest rate concession to borrowers with credit scores of 800 and above. Interest rate concession of 0.25% to borrowers having credit scores of 750-799.
***Concession of up to 50% on processing fee for PSB Apna Vahan Sugam.
Rates and charges as of 15th May 2024; Source: Paisabazaar

What is the minimum credit score I need to get a Car Loan?
There’s no specified minimum credit score for getting a Car Loan from HDFC Bank. But a lower credit score can reduce the loan amount you can get. A credit score above 750 is considered excellent for loans. This will allow you to get a higher loan amount at the most affordable Car Loan rates.

What are the minimum and maximum tenures for Car Loans?
HDFC Bank offers flexible tenure for Car Loan products. While the minimum tenure is 12 months, the maximum loan tenure you can avail of is up to 8 years for EVs. Indian Overseas bank offers maximum quantum of is 75% of the market value of the vehicle without any ceiling for old four wheelers.

Basic documents required for car loan

Document	Requirement
Identity Proof	Aadhaar card
	PAN card
	Driving Licence
	Passport
	Voter ID
Address Proof	Aadhaar card
	Passport
	Driving Licence
	Voter ID
	Family card (ration card)
	Utility bill (Electricity, water, or telephone)
	Life insurance policy
	The applicant's name must be present on the ration card or utility bill.
Age Proof	Birth certificate
	School transfer certificate
	Std. 10th mark sheet
	Aadhaar card
Proof Of Income for Car Loan	Salary slips (for last 3 months) Form 16 Income tax return document
Bank Statement Signature Verification	3 to 6 months bank statement Banks verify this in separate forms which applicants filled out along with their signature
Vehicle Loan Agreement	This document reflects the dealer quoted price for the car selected by the applicant. The loan amount is dependent on the price of the car.