Indian Bank Car Loan Interest Rate November 2026: 7.75% to 9.10% p.a.

Indian Bank car loan interest rate: how the 7.75% to 9.10% band works

Indian Bank tells you the range and nothing else. Its home page shows a repo rate of 5.50% and an MCLR of 8.95%, yet no page says which benchmark the car loan follows, so treat 7.75% as the bottom of a range the branch places you in.

Floating means the rate can move: under the RBI's external benchmark rule for banks a floating retail loan resets at least every three months, and the repo rate rose to 5.50% on 7 October 2026. At a reset you may pick a higher EMI or a longer term, or prepay.

The fixed sheet prices the IB Vehicle Loan at 8.75% to 9.65%, a full point above the floating floor (8.75 less 7.75).

Used and electric cars

Used cars run 9.80% to 11.90% floating or 10.80% to 12.90% fixed. The floating sheet prints a "$" marker on that row but drops the footnote; the fixed sheet explains it: 0.25% off for a car bought from a certified pre-owned dealer such as Maruti True Value. Our used car loan page compares banks. The Eco Vahan row for electric cars keeps the 7.75% floor and trims the ceiling to 9.05%.

What the EMI looks like: ₹15 lakh over 5 years

Tenure matters too: ₹10 lakh at 7.75% is ₹20,157 a month over 5 years and ₹15,462 over 7, but interest climbs from ₹2,09,418 to ₹2,98,804, ₹89,386 more. Test your quote in the car loan EMI calculator and compare bands on our car loan interest rates page.

Indian Bank car loan processing fee and other charges

The new car fee is ₹1,200 plus GST, in force since 17 November 2025: ₹1,416 at 18% GST (₹1,200 plus ₹216). A used car loan pays 1% of the amount, capped at ₹10,000 before GST; on ₹10 lakh that's ₹10,000 plus ₹1,800 GST, or ₹11,800.

Closing early

Prepayment is nil for individuals; a firm or company pays 2% of the balance outstanding. The RBI's 2025 directions on pre-payment charges say the same for floating loans: no foreclosure or part-payment charge on an individual's personal-use loan sanctioned from 1 January 2026, and no lock-in. Fixed-rate loans sit outside that ban, and the bank's "nil" line doesn't separate fixed from floating, so get it written into your Key Facts Statement.

Smaller charges

A credit report pull costs ₹30 per individual. Equitable mortgage charges apply only where collateral is taken, on the part of a loan above ₹25 lakh: nil up to ₹10 lakh, then ₹300 per lakh, capped at ₹30,000. Documentation and penal charges aren't on the pages we read.

Indian Bank car loan eligibility and documents

Salaried people, professionals, business owners, the self-employed, NRIs, pensioners, and staff of other banks (with an NOC) can apply. Firms and companies qualify with two years of net profit.

Income floors: ₹25,000 gross a month if salaried (₹20,000 net for a used car), a pension of ₹20,000 a month, or ₹3 lakh net a year on the latest ITR for the self-employed.

How much you can borrow

The margin is 10% to 15% of the on-road price on a new car: on a ₹10 lakh car, 10% means a loan of ₹9 lakh and ₹1 lakh from you. Used cars carry 20% to 30% on the lowest of agreed price, valuation and dealer quote. Limits are ₹5 crore new and ₹3 crore used; above ₹25 lakh the bank wants collateral worth 100% of the excess. Terms run to 84 months new, 72 used.

Not published: age limits, a minimum credit score, a cap on a used car's age, or a document list; expect KYC, salary slips or ITRs, bank statements and the dealer's quotation. Our car loan eligibility guide shows what other banks print.

How to apply for an Indian Bank car loan

Two routes: the official apply button on this page, or any Indian Bank branch with your documents and the car quotation. The bank names no pre-approved or instant car finance product and no sanction timeline.

How to choose the right car loan

Don't choose on the floor alone. Ask the branch which benchmark your loan follows, what rate you'll actually get, and whether every fee and the prepayment terms appear in your Key Facts Statement. Since 1 October 2024 a bank must hand you the KFS before you sign, showing the annual percentage rate, total interest and every charge; it's valid for at least three working days, so set it beside a rival's.

Common mistakes

• Assuming 7.75% is yours. Budget on 9.10% until the KFS says otherwise.
• Reading the fixed sheet without noticing its 12 April 2026 date.
• Stretching to 84 months; on ₹10 lakh at 7.75% that costs ₹89,386 more interest.

Who the Indian Bank car loan suits, and how it compares

It suits a buyer who cares more about the worst case than the best: a 9.10% ceiling is a comfort when the bank won't tell you your rate up front. It also suits big-ticket buyers (₹5 crore) and electric car buyers (9.05% Eco Vahan ceiling). Look elsewhere if you want the whole on-road price funded, want to know which score earns the floor, or need a fixed rate below 8.75%.

Indian Bank against Canara Bank, UCO Bank and Bank of Maharashtra

Canara Bank matches the 7.75% floor but says who gets it: women borrowers in its CRG-PRIME grade on loans above ₹15 lakh, others at 7.80%; its ceiling is 10.95%. It is waiving its processing fee until 31 December 2026.

UCO Bank prints the lowest floor of the 30, 7.70%, for a CIBIL score of 825 and above, with a 10.25% ceiling and a 0.50% fee capped at ₹5,000 plus GST. Bank of Maharashtra also starts at 7.70% for salaried borrowers scoring 800 and above, funds 100% of the on-road price and charges 0.25% (₹1,000 to ₹15,000), but its 12% ceiling is the widest of the four.

In short: Indian Bank has the lowest ceiling and smallest fee of the four but makes you trust the branch on the floor; the rivals print the rule yet can charge far more at the top. The full list is on our car loan hub.