Drive home your dream car: Find hidden deals & best loan rates by banks

Processing fees and rules of top lenders listed to help you make a decision

Looking to drive home your dream car without draining your savings? While car prices might be on the rise, banks are competing to offer attractive auto loan rates this new year- from zero processing fees to special festival discounts. To assist in this process, we have compiled a comprehensive list of new car loan rates and charges from 18 leading banks.

 

New car loan rates and charges

 

UCO Bank offers interest rates of 8.45 per cent onwards, translating to EMIs of Rs 10,246 onwards for a loan amount of Rs 5 lakh over a tenure of 5 years. The bank does not charge a processing fee.

 

 

Union Bank of India offers interest rates of 8.70 per cent to 10.45 per cent, resulting in EMIs ranging from Rs 10,307 to Rs 10,735 for a loan amount of Rs 5 lakh over a tenure of five years. The processing fee is NIL.

 

Canara Bank offers interest rates of 8.70 per cent to 12.70 per cent, resulting in EMIs between Rs 10,307 and Rs 11,300 for a loan amount of Rs 5 lakh for a tenure of five years. The processing fee is 0.25 per cent of the loan amount, ranging from Rs 1,000 to Rs 5,000. However, processing fees is 100% waived off from 1.09.2024 to 31.12.2024 for its Retail Loan Festival.

 

Punjab National Bank offers interest rates of 8.75 per cent to 10.60 per cent, translating to EMIs between Rs 10,319 and Rs 10,772 for a loan amount of Rs 5 lakh over a tenure of five years. The processing fee is up to 0.25 per cent of the loan amount, ranging from Rs 1,000 to Rs 1,500.

 

Bank of Baroda offers interest rates of 9.00 per cent to 12.70 per cent, resulting in EMIs between Rs 10,379 and Rs 11,300 for a loan amount of Rs 5 lakh over a tenure of five years. The processing fee is up to Rs 750.

 

Bank of India offers interest rates of 8.85 per cent to 12.10 per cent, translating to EMIs of between Rs 10,343 and Rs 11,148 for a loan amount of Rs 5 lakh over a tenure of five years. The processing fee is 0.25 per cent of the loan amount, ranging from Rs 1,000 to Rs 5,000.

 

State Bank of India offers interest rates of 9.10 per cent to 10.15 per cent, translating to EMIs between Rs 10,403 and Rs 10,660 for a loan amount of Rs 5 lakh over a tenure of five years. The processing fee is NIL.

 

Here is the full list by Paisabazaar.com on car loans offered by 18 banks with loan rates, EMIs and processing fees. 

NEW CAR LOAN-RATES AND CHARGES
Name of Lender	Interest rate (%)	EMI (Rs)  Loan amount-5 lakh  Tenure-5 years	Processing fee  (% of loan amount)
Union Bank of India	8.70 - 10.45	10,307 - 10,735	NIL
Punjab National Bank	8.75 - 10.60	10,319 - 10,772	Up to 0.25% (Rs. 1,000 - Rs. 1,500)
Bank of Baroda	9.00 - 12.70	10,379 - 11,300	Up to Rs 750
Canara Bank	8.70 - 12.70	10,307 - 11,300	0.25% (Rs. 1,000 - Rs. 5,000) (Processing fees are 100% waived off from 1.09.2024 to 31.12.2024 for its Retail Loan Festival)
Bank of India	8.85 - 12.10	10,343 - 11,148	0.25% (Rs. 1,000 - Rs. 5,000) (Processing charges are waived off for individuals having CIBIL personal score 700 and above or -1/0)
UCO Bank	8.45 onwards	10,246 onwards	Nil
State Bank of India	9.10-10.15	10,403-10,660	NIL
IDBI Bank	8.90-9.70	10,355 - 10,550	Rs 2,500
Bank of Maharashtra*	8.70 - 13.00	10,307 - 11,377	NIL
Indian Overseas Bank**	8.65-9.85	10,294 - 10,587	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	Up to 1% (Rs 3,500 - Rs 9,000)
Karnataka Bank	9.13-11.61	10,411 - 11,024	Up to 0.50% (Rs 500 - Rs 5,000)
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	Rs. 1999
IDFC First Bank	9.99 onwards	10,621 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 8th January 2025
Source: Paisabazaar.com