Bandhan Bank Car Loan Interest Rate November 2026: 8.86% Over 3 Years

Bandhan Bank car loan interest rate: how the pricing works

Bandhan Bank prints no credit score grid and no benchmark, only three starting rates effective 1 November 2026: 8.86% p.a. for a new car over more than 3 years or any pre-owned car, 9.50% p.a. for a new car within 3 years. The nearest ceiling is its disclosure for car loans disbursed in July to September 2026: minimum 8.85%, maximum 15.51%, mean 10.15%. That minimum is a hundredth below the page's 8.86%; we use the page's offer rate.

Among the 30 lenders with a published floor on our car loan interest rates page, 8.86% ranks 22nd, against a median of 8.5% and a low of 7.7% at UCO Bank for a CIBIL score of 825 or more.

The pre-owned floor matches the new car floor beyond 3 years at 8.86% p.a., where Axis Bank starts used cars at 12.95% and IDFC FIRST Bank at 11.99%; see our used car loan page.

Floating means the rate tracks an external benchmark such as the repo rate, 5.50% since 7 October 2026, resets at least every three months and, under the RBI's 2025 directions on pre-payment charges, carries no foreclosure fee. Fixed means a steady EMI, but closing early costs 4% of the outstanding principal.

On ₹10 lakh at 8.86% p.a., 5 years means an EMI of ₹20,690 and interest of ₹2,41,428; 7 years eases the EMI to ₹16,018 but lifts interest to ₹3,45,522, so the extra two years cost ₹1,04,094 (₹3,45,522 minus ₹2,41,428). A 3-year loan starts at 9.50%; run it in the car loan EMI calculator.

Fees and charges, in rupees

The processing fee is up to 4% of the loan amount plus GST: up to ₹40,000 on ₹10 lakh (4% of ₹10,00,000). "Up to" leaves room to ask for less; the final figure must appear in your Key Facts Statement.

Foreclosure and part payment

Fixed rate: foreclosure costs 4% of the principal outstanding, and part payment is allowed once a year after the first 6 months, up to 25% of the outstanding principal, with 4% charged on the excess. With ₹10 lakh outstanding you may prepay ₹2.5 lakh free (25% of ₹10 lakh); pay ₹5 lakh and the ₹2.5 lakh above the cap costs ₹10,000 (4% of ₹2.5 lakh).

Floating rate: nil, as the RBI's 2025 directions on pre-payment charges require for an individual's non-business loan sanctioned from 1 January 2026.

Other charges on the schedule

The schedule prints no effective date, so ask for the current version at sanction.

Common mistakes, covered in our guide to car loan processing fees and charges: assuming "nil foreclosure" covers a fixed loan, paying the full 4% fee without asking for a cut, and forgetting GST.

Who can get a Bandhan Bank car loan

Four kinds of applicant: salaried people, self-employed professionals, self-employed non-professionals and non-individual entities, so a firm can borrow in its own name. Minimum age for individuals is 21; no maximum is printed.

The bank asks for salary slips or ITR but names no minimum income, where IDFC FIRST Bank prints ₹1.8 lakh a year for salaried applicants and Axis Bank ₹4 lakh. On a ₹10 lakh on-road car the 90% cap means the bank funds up to ₹9 lakh and you bring at least ₹1 lakh.

Documents

Expect PAN and Aadhaar for KYC, address proof, recent bank statements, salary slips or the latest ITR, the dealer's proforma invoice, and for a used car its registration certificate and insurance. Not published: a credit score cut-off or any electric car term.

How to apply

Start from the bank's car loan page, through the official link at the end of this page, or apply at a Bandhan Bank branch with the documents above; the bank's page does not show an online application form. The bank publishes no sanction or disbursal timeline.

What to compare before you sign

The RBI's Key Facts Statement rule, in force for retail loans sanctioned on or after 1 October 2024, means the bank must hand you a KFS before you sign, valid for at least three working days and listing every fee and the rate type. Nothing outside it can be charged later without your consent.

Read three lines: fixed or floating; the fee actually charged, not the 4% cap; and the APR, the honest number to compare across banks. On a floating loan, check the reset clause too.

How to choose the right car loan here

Decide tenure first: beyond 3 years earns the 8.86% floor, but 7 years on ₹10 lakh costs ₹1,04,094 more interest than 5. Then pick the basis: floating if you may prepay, fixed if you want one EMI to the end. Last, compare APRs across two or three lenders, not starting rates.

Who it suits, and how Bandhan Bank compares

Bandhan Bank makes most sense for a used car buyer: a pre-owned loan from 8.86% p.a. up to ₹75 lakh. It also fits a costly new car on a long tenure and a floating rate borrower who may prepay.

Look elsewhere for a short loan (3 years here starts at 9.50%, Axis Bank at 8.85% fixed on any tenure), if you must know your worst case up front, since no ceiling is printed, or if you need 100% funding, which all three rivals advertise.

Against Axis Bank, IndusInd Bank and IDFC FIRST Bank

Axis Bank publishes a full fixed range, 8.85% to 11.70% (3-year MCLR plus a spread of up to 2.85%, no reset) and caps fees at 2% plus GST, but exit costs 5% plus GST and used cars start at 12.95%.

IndusInd Bank prints no offer rate; its 8.98% to 17.96% is what it charged in July to September 2026, an RBI disclosure, mean 11.00%. Loans are fixed, the fee is 3% and preclosure 5%.

IDFC FIRST Bank is the closest match: 8.99% to 11.50%, fixed or floating, zero foreclosure on floating and 5% on fixed, tenure to 10 years, loans to ₹2 crore. Its pages disagree on the fee (up to 5% including GST, or up to ₹10,000); pre-owned starts at 11.99%.