Car Loan Interest Rates: Cheapest car loan available in these banks, check interest rate and processing fee
Car Loan Interest Rates: If you are planning to buy a car, ignoring the interest rates and processing fees associated with car loans can prove to be costly. We are providing here information about which bank charges how much interest, what will be the EMI and what is the processing fee.
Car Loan Interest Rates: The dream of buying a new car has now become easier than ever, especially when you have the option of a car loan. But this easy facility is also associated with some important things, ignoring which can cost you heavily. Interest rates, EMI and processing fees, these are three factors that directly affect your loan cost. If you are taking a loan of ₹ 1 lakh for a period of 5 years, then we have given here the complete details of how much EMI (monthly installment) you will have to pay in different banks and what will be the processing fee.
Lowest EMI: Indian Overseas Bank can make a better option
If you want a low EMI, then in Indian Overseas Bank (IOB) you will have to pay EMI ranging from ₹ 2,047 to ₹ 2,115. Here the interest rate starts from 8.40%, which is the lowest in this list. Although the bank has not given clear information on the website in terms of processing fees, but in terms of EMI, this bank can prove to be an economical option.
Bank of Maharashtra and Canara Bank: There is transparency in processing fees as well
Talking about the interest rate, the EMI of Bank of Maharashtra (8.45–12.75%) and Canara Bank (8.45–10.20%) is approximately between ₹2,049– ₹2,209. The special thing is that both these banks have clearly stated the processing fee. Here the processing fee is charged at the rate of 0.25%, in which a minimum of ₹1,000 and a maximum of ₹15,000 will be charged. This already gives you an idea of the total cost of the loan.
What is the interest rate and processing fee of which bank
| Name of the Bank |
Interest Rate (%) |
PRICE ( ₹ ) |
Processing Fees |
| Indian Overseas Bank |
8.40 – 9.80 |
₹2,047 – ₹2,115 |
as applicable |
| Bank Of Maharashtra |
8.45 – 12.75 |
₹2,049 – ₹2,263 |
0.25% (minimum ₹ 1,000 and maximum ₹ 15,000) |
| Canara Bank |
8.45 – 10.20 |
₹2,049 – ₹2,209 |
0.25% ( ₹ 1,000 to ₹ 5,000) + GST |
| UCO Bank |
8.45 – 10.75 |
₹2,049 – ₹2,162 |
0.50% (maximum ₹ 5,000) + GST |
| Union Bank Of India |
8.45 – 10.20 |
₹2,049 – ₹2,135 |
Up to ₹ 1,000 + GST; free for e-vehicles |
| Indian Bank |
8.50 – 9.75 |
₹2,052 – ₹2,112 |
₹1,000 + GST |
| Punjab National Bank |
8.50 – 9.95 |
₹2,056 – ₹2,127 |
0.25% ( ₹ 1,000 minimum, ₹ 1,500 maximum) |
| Central Bank Of India |
8.60 – 10.05 |
₹2,056 – ₹2,127 |
Information not available on website |
| Punjab And Sind Bank |
8.60 – 10.00 |
₹2,056 – ₹2,123 |
0.25% ( ₹ 1,000 to ₹ 15,000)* |
| bank of india |
8.75 – 10.60 |
₹2,061 – ₹2,170 |
0.25% ( ₹ 2,500 to ₹ 10,000) |
| IDBI Bank |
8.80 – 10.50 |
₹2,062 – ₹2,166 |
Up to ₹ 2,500 |
| Karnataka Bank |
8.88 – 12.11 |
₹2,064 – ₹2,255 |
0.5% ( ₹ 2,500 to ₹ 10,000) + taxes |
| Nainital Bank |
8.90 – 10.75 |
₹2,071 – ₹2,250 |
Not available on website |
| CSB Bank |
8.95 – 10.75 |
₹2,073 – ₹2,162 |
Not available on website |
| State Bank of India (SBI) |
9.10 – 10.15 |
₹2,081 – ₹2,132 |
Nil (no processing fees) |
Note: Processing fee information is not available on the website of some banks. The EMI is estimated based on the interest rate and the actual amount will depend on the terms and conditions of the bank.
Indian Bank and Union Bank: Fixed processing fees make calculations easier
Indian Bank offers a flat ₹1,000 + GST as processing fee, while Union Bank of India (UBI) offers a fee of up to ₹1,000 with free processing for e-vehicles. Both banks have interest rates starting from 8.45% to 10.20% and EMI ranges between ₹2,049– ₹2,135.
Punjab National Bank and Punjab & Sind Bank: Balanced options with limited processing fees
PNB and Punjab & Sind Bank also charge 0.25% processing fee on car loans, with a minimum of ₹1,000 and a maximum of ₹1,500– ₹15,000. In terms of EMI, the EMI in these banks ranges from ₹2,056– ₹2,127. If you prefer processing fees, these banks may be helpful for you.
State Bank of India: Highest EMI but no processing fees
SBI’s interest rate ranges from 9.10% to 10.15%, which leads to EMIs ranging from ₹2,081– ₹2,132. Though this EMI range is the highest, SBI doesn’t charge a processing fee, which can help reduce the overall cost of the loan.
Incomplete information on the website of some banks
There are some banks like Central Bank of India, Nainital Bank and CSB Bank whose website has not updated the information about processing fees. In such a situation, it becomes very important to get information from these banks personally before taking a loan.
Keep these things in mind while taking a car loan
Be it EMI or processing fee, if you take a car loan without investigation, then more money can come out of your pocket every month. By doing a little homework, you can not only save on EMI, but also save thousands of rupees in loan processing. Overall, while taking a car loan, do not just look at the interest rate or EMI, but also compare the processing fee and other terms thoroughly. Every bank has a different policy and with the right information you can get a better deal.
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