Buying a car this Diwali? Compare car loan interest rates starting at 7.55%, monthly EMIs and processing fees across banks before choosing your lender
Canara Bank, Central Bank Of India And Federal Bank: Canara Bank offers car loans at interest rates ranging from 7.70% to 11.70% per annum. The monthly EMI ranges from Rs 10,067 to Rs 11,047. Its processing fee is 0.25% of the loan amount, subject to a minimum of Rs 1,000 and a maximum of Rs 5,000. Central Bank of India charges interest rates ranging from 7.75% to 9.55%, with monthly EMIs between Rs 10,078 and Rs 10,513. The bank is offering a complete waiver of processing fees until December 31, 2026. At Federal Bank, car loan interest rates start at 7.85% and go up to 9%. The monthly EMI starts at Rs 10,102. The processing fee is 1% of the loan amount, ranging from Rs 1,000 to Rs 50,000. (Image: Representative)HDFC Bank, ICICI Bank, IDBI Bank And IDFC FIRST Bank: HDFC Bank offers car loans at interest rates starting from 8.25% per annum, with monthly EMIs beginning at Rs 10,198. The processing fee can be up to 0.5% of the loan amount, ranging from Rs 3,500 to Rs 8,000. At ICICI Bank, interest rates start at 8.40%, and the monthly EMI begins at Rs 10,234. The processing fee can go up to Rs 8,500. IDBI Bank charges interest rates ranging from 7.75% to 9.30%. The monthly EMI ranges from Rs 10,078 to Rs 10,452, while the processing fee is Rs 2,500. IDFC FIRST Bank offers car loans at interest rates starting from 8.99%, with EMIs beginning at Rs 10,377 per month. Its processing fee can be as high as 5% of the loan amount. (Image: Representative)Indian Bank, Indian Overseas Bank And Karnataka Bank: Indian Bank offers car loans at interest rates starting from 7.75% per annum. The monthly EMI ranges from Rs 10,031 to Rs 11,034, and there is no processing fee. At Indian Overseas Bank, interest rates range from 7.80% to 12%. The monthly EMI is between Rs 10,090 and Rs 11,122. The bank does not charge a processing fee. Karnataka Bank offers car loans at interest rates ranging from 8.16% to 11.66%, with monthly EMIs between Rs 10,177 and Rs 11,037. Its processing fee can be up to 0.60% of the loan amount, subject to a minimum of Rs 2,500 and a maximum of Rs 11,000. (Image: Representative)Punjab And Sind Bank, Punjab National Bank And SBI: Punjab and Sind Bank offers car loans at interest rates ranging from 7.55% to 14.30% per annum. The monthly EMI ranges from Rs 10,031 to Rs 11,712. Its processing fee is 0.25% of the loan amount, subject to a minimum of Rs 1,000 and a maximum of Rs 15,000. At Punjab National Bank (PNB), interest rates range from 7.85% to 10.95%. The monthly EMI is between Rs 10,102 and Rs 10,859. The processing fee can be up to 0.25% of the loan amount, with charges ranging from Rs 1,000 to Rs 1,500. State Bank of India (SBI) charges interest rates ranging from 8.45% to 9.50% on car loans. The monthly EMI ranges from Rs 10,246 to Rs 10,501, while the processing fee is between Rs 500 and Rs 2,000. (Image: Representative)UCO Bank And Union Bank Of India: UCO Bank offers car loans at interest rates ranging from 7.70% to 10.25% per annum. The monthly EMI ranges from Rs 10,067 to Rs 10,685. The processing fee is 0.5% of the loan amount, capped at Rs 5,000. Union Bank of India charges interest rates ranging from 7.75% to 10.25%. The monthly EMI is between Rs 10,078 and Rs 10,685. The processing fee is capped at Rs 1,000. (Image: Representative)Which Banks Offer The Lowest Car Loan Interest Rates? Based on the starting interest rates announced by banks, Punjab and Sind Bank offers the lowest rate at 7.55% per annum. Bank of Maharashtra, Canara Bank and UCO Bank follow, with starting rates of 7.70%. However, the lowest advertised rate may not be available to every borrower. The actual interest rate depends on factors such as credit score, income, repayment capacity and the bank’s lending terms. Some lenders are also offering additional festive-season benefits. Eligible existing customers of Bank of Maharashtra can get an interest rate concession of 0.25 percentage points. Canara Bank is offering a 100% waiver on processing fees until December 31, 2026. Central Bank of India is also waiving processing fees until the same date. Under its PSB Apna Vahan Sugam scheme, Punjab and Sind Bank is offering a discount of up to 50% on processing fees. (Image: Representative)Disclaimer: The interest rates, EMIs and processing fees mentioned in this article are based on information published by the respective banks. Actual rates and charges may vary depending on the bank’s terms and conditions, the applicant’s credit score, income and eligibility. Contact the concerned bank and check all applicable charges before applying for a car loan. (Image: Representative)
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Banks Offer Special Deals On Car Loans: Planning to buy a car this Diwali? It may be worth checking the special offers banks are rolling out during the festive season. Several lenders are offering competitive interest rates and discounts on processing fees, which could help reduce both the cost of borrowing and the upfront expenses involved in taking a car loan. During the 2026 Diwali season, banks such as Indian Bank, State Bank of India (SBI), Kotak Mahindra Bank and HDFC Bank are offering various deals. According to information compiled by BankBazaar.com from bank websites as of October 23, some lenders are offering car loans at interest rates starting from 7.75% per annum. Benefits may also include processing fee waivers and zero foreclosure charges on early repayment, subject to the bank’s terms and conditions. (Image: Representative)
