If you’re planning to buy a car in 2025, securing a car loan at the lowest interest rate can help you save significantly on EMIs and overall repayment costs. Various banks in India are offering competitive interest rates on car loans. Here’s a comparison of some of the best rates available in March 2025:
| Bank | Interest Rate (per annum) | EMI for ₹10 lakh over 5 years | Processing Fees & Other Charges |
|---|---|---|---|
| Bank of Maharashtra | Starting from 8.45% | ₹20,448 | ₹2,500 (0.25% of loan amount), minimal foreclosure charges |
| Federal Bank | Starting from 8.85% | ₹20,686 | ₹10,000 (up to 1% of loan amount), foreclosure charges applicable |
| Punjab and Sind Bank | 8.85% – 10.25% | ₹20,686 – ₹21,370 | ₹5,000 processing fee, no prepayment charges after 6 months |
| IDBI Bank | 8.90% – 9.70% | ₹20,710 – ₹21,100 | ₹5,000 (up to 0.50% of loan amount), foreclosure charges may apply |
| State Bank of India (SBI) | 9.10% – 10.15% | ₹20,806 – ₹21,320 | ₹4,000 (0.40% of loan amount, min ₹500), prepayment penalty applicable |
| Punjab National Bank (PNB) | 9.00% – 10.50% | ₹20,756 – ₹21,444 | ₹5,000 (up to 0.50% of loan amount), foreclosure charges applicable |
| Bank of Baroda (BOB) | 8.75% – 10.00% | ₹20,636 – ₹21,196 | ₹10,000 processing fee, prepayment penalty applicable |
| Canara Bank | 8.95% – 10.30% | ₹20,736 – ₹21,296 | ₹4,000 (0.40% of loan amount), minimal foreclosure charges |
Best Car Loan Options for March 2025
1. Bank of Maharashtra Car Loan
- Interest Rate: Starting from 8.45% p.a.
- Tenure: Up to 84 months
- Other Charges: ₹2,500 processing fee, minimal foreclosure charges
- Special Benefits: No prepayment or pre-closure charges
2. Federal Bank Car Loan
- Interest Rate: Starting from 8.85% p.a.
- EMI Calculation: ₹20,686 for a ₹10 lakh loan over 5 years
- Other Charges: ₹10,000 processing fee, foreclosure charges applicable
- Eligibility Factors: Based on credit score and income stability
3. Punjab and Sind Bank Car Loan
- Interest Rate: Ranges between 8.85% and 10.25% p.a.
- EMI Range: ₹20,686 – ₹21,370 for a ₹10 lakh loan over 5 years
- Other Charges: ₹5,000 processing fee, no prepayment charges after 6 months
4. IDBI Bank Car Loan
- Interest Rate: Between 8.90% and 9.70% p.a.
- EMI Range: ₹20,710 – ₹21,100 for a ₹10 lakh loan over 5 years
- Other Charges: ₹5,000 processing fee, foreclosure charges may apply
5. SBI Car Loan
- Interest Rate: 9.10% to 10.15% p.a.
- EMI Range: ₹20,806 – ₹21,320 for a ₹10 lakh loan over 5 years
- Other Charges: ₹4,000 processing fee (minimum ₹500), prepayment penalty applicable
6. Punjab National Bank (PNB) Car Loan
- Interest Rate: 9.00% – 10.50% p.a.
- EMI Range: ₹20,756 – ₹21,444 for a ₹10 lakh loan over 5 years
- Other Charges: ₹5,000 processing fee, foreclosure charges applicable
7. Bank of Baroda (BOB) Car Loan
- Interest Rate: 8.75% – 10.00% p.a.
- EMI Range: ₹20,636 – ₹21,196 for a ₹10 lakh loan over 5 years
- Other Charges: ₹10,000 processing fee, prepayment penalty applicable
8. Canara Bank Car Loan
- Interest Rate: 8.95% – 10.30% p.a.
- EMI Range: ₹20,736 – ₹21,296 for a ₹10 lakh loan over 5 years
- Other Charges: ₹4,000 processing fee, minimal foreclosure charges
Tips to Get the Lowest Car Loan Interest Rate
- Maintain a Good Credit Score: A higher CIBIL score (750+) increases your chances of getting a lower interest rate.
- Compare Multiple Banks: Always check offers from different banks before finalizing your loan.
- Choose a Shorter Tenure: A shorter loan tenure generally attracts a lower interest rate.
- Negotiate with the Bank: If you have a strong credit history and a stable income, you can negotiate for a better rate.
- Look for Seasonal Offers: Banks often offer discounted rates during festive seasons and special promotions.
Final Thoughts
Securing a car loan at a low-interest rate can help you save on your EMIs and reduce your financial burden. Before applying, compare various lenders, check eligibility criteria, and consider other charges like processing fees and foreclosure penalties.
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