{"id":7907,"date":"2026-05-02T16:25:00","date_gmt":"2026-05-02T10:55:00","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=7907"},"modified":"2026-05-02T15:32:49","modified_gmt":"2026-05-02T10:02:49","slug":"top-5-banks-with-lowest-car-loan-interest-rates-in-india-2026","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/top-5-banks-with-lowest-car-loan-interest-rates-in-india-2026\/","title":{"rendered":"Top 5 Banks with Lowest Car Loan Interest Rates in India (2026)"},"content":{"rendered":"\n
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Synopsis<\/strong>: Car loan is a financial agreement that allows you to borrow money to purchase a vehicle, which you repay over time with interest. In India, car loan can be repaid usually\u00a0between 1 to 7 years<\/em>.\u00a0.\u00a0This article talks about the top 5 banks that offer the lowest interest rate for car loans.\u00a0<\/em><\/p>\n<\/blockquote>\n\n\n\n

For many Indians, owning a car is not merely about convenience but represents a lifetime aspiration. Irrespective of whether one seeks the liberty to travel on their own without depending on public transport, the comfort of a car for family use, or the pride in owning an expensive car as proof of their achievements, the purchase of a car is of great importance in Indian society. However, thanks to the competition among the banks in India, fulfilling this lifetime ambition has never been easier. Be it employees earning a monthly salary, professionals working for themselves, or NRIs, Indian banks, both from the public and private sectors, are now offering car loans at very low-interest rates, allowing everyone to buy cars at the most convenient time for them.<\/p>

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1. Bank of Baroda (BOB) \u2014 7.60% Onwards<\/strong><\/h2>\n\n\n\n

The Baroda Car Loan from Bank of Baroda is considered the most attractive product among others. BOB offers its customers loans that cover up to 90% of the cost of a brand new vehicle, where the total loan amount cannot exceed \u20b95 crore. The loan period can be as long as 7 years (84 months).<\/p>\n\n\n\n

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  • Eligibility:<\/strong> Salaried individuals, businessmen, professionals, corporates, and NRIs can avail themselves of the Loan. The borrower should be above the age of 21 years, with a maximum age limit of 70 years by the end of the loan term. Applicants need to maintain a minimum CIBIL score of 701. Interest is charged on a reducing basis, hence a better credit rating automatically means a lower interest.<\/li>\n\n\n\n
  • Key Features:<\/strong>\n
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    • No foreclosure penalties<\/li>\n\n\n\n
    • Interest reduction of 0.05% for customers choosing Group Credit Life Insurance (GCLI)<\/li>\n\n\n\n
    • Lower processing charge (\u20b91,500\u2013\u20b92,000 + GST, based on the loan amount)<\/li>\n\n\n\n
    • Possibility of including the cost of installing LPG\/CNG kits in the loan<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

      2. Union Bank of India \u2014 7.60% Onwards<\/strong><\/h2>\n\n\n\n

      The Union Bank of India gives car loans under their Union Miles program. It caters to both salaried people and the self-employed. They provide financing for up to 85% of the cost price of the car on the road, but there is no limit for the loan amount in case of new cars. The longest period for which the loan can be availed is 7 years (84 months) for new cars.<\/p>