What is the current car loan interest rate in India 2026?+
Car loan interest rates in India 2026: SBI Car Loan 8.85–9.85% (new), 11.50–14.60% (used). HDFC Bank 9.00–11.50% (new). ICICI Bank 9.10–11.75% (new). Axis Bank 9.25–12%. Union Bank 8.70–10.55%. Rates depend on: loan amount, tenure, CIBIL score, new vs used vehicle, and whether vehicle is electric. Electric vehicle loans often get lower rates by 0.25–0.50%.
How much down payment is required for a car loan?+
Minimum down payment for car loans is typically 10-25% of the on-road price. Banks fund: New cars: up to 100% of ex-showroom price (some banks). But you must pay GST, insurance, RTO, handling charges from own funds (typically 15-20% of on-road). Used cars: 70-80% of vehicle value. Higher down payment reduces EMI and total interest paid. Putting 20-25% down is recommended.
What is the maximum car loan tenure?+
Maximum car loan tenure is typically 7 years (84 months). Shorter tenure: Lower total interest but higher EMI. Longer tenure: Lower EMI but higher total cost. Example: ₹8 lakh car loan at 9%: 5-year EMI = ₹16,607, Total interest = ₹99,648. 7-year EMI = ₹12,771, Total interest = ₹1,72,780. 7-year loan costs ₹73,000 more in interest vs 5-year.
Can I get a car loan with a low CIBIL score?+
Car loans are secured (car is collateral), so they're easier to get than personal loans even with moderate CIBIL scores. Score 750+: Best rates, fast approval. 700-750: Approval likely with standard rates. 650-700: Some lenders (NBFCs) approve with higher down payment requirement. Below 650: Very difficult; try adding a guarantor or joint applicant with better score. A higher down payment (30-40%) can improve approval chances.
What is the total cost of ownership for a car?+
Beyond the car price and EMI, total cost of ownership includes: Insurance (₹15,000–₹60,000/year depending on car), RTO registration (1–16% of car value depending on state and fuel type), Annual maintenance and service (₹10,000–₹40,000), Fuel cost (₹3,000–₹8,000/month for 1,500 km), Toll charges, parking, and tyre replacement. Calculate all these before deciding on your car budget.