IndusInd Bank Car Loan Interest Rate November 2026: 8.98% to 17.96%
There is no IndusInd Bank car loan interest rate to quote in November 2026: the bank's product pages print no figure. It publishes only an RBI disclosure of rates actually charged: 8.98% to 17.96% p.a. on new car loans between July and September 2026 (mean 11.00%) and 10.20% to 21.00% on used cars. Every loan is fixed rate and the processing fee is up to 3% plus GST.
IndusInd Bank car loan in 2026: a loan with no price on the label
IndusInd Bank sells two car loans to individuals, for new and pre-owned cars: no scheme names, no instant or pre-approved variant, nothing on electric cars. The new car page promises "up-to 100%" finance on the car value, and the bank's Schedule of Charges says all vehicle loans are on a fixed rate unless stated otherwise.
Where other banks print a starting rate, IndusInd's page says only "Competitive & convenient interest rates within your budget limit". So every rate here is from the bank's quarterly RBI disclosure of what it charged between 1 July and 30 September 2026, not an offer. A disclosed 8.98% means someone paid it, not that you will.
The Schedule of Charges, effective 1 April 2024, prints a wider card range: 8.00% to 18.00% new, 10.00% to 21.00% used, marked as maximums.
IndusInd Bank car loan EMI
Loan amount: ₹8,00,000 at IndusInd Bank's published rate range. Reducing-balance EMI; processing fees and insurance are extra.
Compare car loan ratesYour monthly EMI
₹16,599
for 60 months
₹9,95,935
Total payable
₹8,00,000
₹1,95,935
Interest is 19.7% of what you repay. A shorter tenure cuts it; a lower rate cuts it more.
How the IndusInd Bank car loan interest rate is set
A disclosed range is the minimum, maximum and mean rate a bank actually charged in a quarter. For IndusInd's new Passenger Vehicle loans in July to September 2026 that was 8.98%, 17.96% and 11.00%; the mean is what a typical borrower paid. The APR row, which folds in fees, runs 8.99% to 22.15%. Who got 8.98%? The bank doesn't say; its FAQ asks only for a credit score "above 600".
Fixed, built on MCLR
Your rate is the bank's MCLR plus a margin, then fixed for the loan's life. For tenures up to 3 years it can't sit below the MCLR for that tenor (9.75% for one year, 9.95% for two or three, since 22 October 2026), so a rate like 8.98% fits only a longer loan today.
Fixed cuts both ways. The RBI's 2025 directions on pre-payment charges, in force for loans sanctioned from 1 January 2026, cover only floating-rate loans, so IndusInd may keep its 5% preclosure charge. In return, a fixed EMI ignored the repo rate's rise to 5.50% on 7 October 2026.
Used cars, and no EV band
Used Passenger Vehicle loans were charged 10.20% to 21.00%, mean 15.13%, with APRs of 10.73% to 25.89%. No electric car scheme is published. Our used car loan guide covers the other lenders.
The EMI, at the lowest rate the bank disclosed charging
₹10 lakh over 5 years at 8.98% is an EMI of ₹20,749 with ₹2,44,919 of interest. At the 17.96% top the same loan costs ₹25,372 a month and ₹5,22,300 in interest, ₹4,623 more every month (25,372 less 20,749). Check your numbers on the car loan EMI calculator and every published floor on our interest rates table.
IndusInd Bank car loan rates as published
| New car | 8.98% to 17.96% p.a. |
|---|---|
| Who gets the lowest rate | Lowest rate actually charged on new car loans in July to September 2026, as the bank's RBI rate-range disclosure reports it; the bank publishes no offer rate or grid |
| Rate basis | Fixed (MCLR 1 year 9.75% (overnight 9.15%, 1 month 9.20%, 3 month 9.40%, 6 month 9.60%, 2 year 9.95%, 3 year 9.95%); Base Rate 9.60% p.a. w.e.f. Oct 02, 2026) |
| Used car | 10.2% to 21% p.a. |
| Electric car | Not stated |
| Read on | 9 November 2026 |
IndusInd Bank's published rate table
Vehicle Loan Interest Rates for individuals, Bank Rate and Annual Percentage Rate, Q2 2026-2027 (01-07-2026 To 30-09-2026), Passenger Vehicle rows
| Table | Category | Min % | Max % | Mean % |
|---|---|---|---|---|
| Bank Rate Q2 2026-2027, New Vehicles | Passenger Vehicle | 8.98 | 17.96 | 11.00 |
| Bank Rate Q2 2026-2027, Used Vehicles | Passenger Vehicle | 10.20 | 21.00 | 15.13 |
| Annual Percentage Rate Q2 2026-2027, New Vehicles | Passenger Vehicle | 8.99 | 22.15 | 11.41 |
| Annual Percentage Rate Q2 2026-2027, Used Vehicles | Passenger Vehicle | 10.73 | 25.89 | 15.77 |
The same tables carry Small Commercial Vehicle, Construction Equipment, Light Commercial Vehicle, Medium Heavy Commercial Vehicle, Tractor & Farm Equipment, Two Wheeler and Affordable Home Loan rows (not recorded). The Consumer Finance Division Schedule of Charges (effective 01.04.2024) prints the card range for 'Passenger Vehicles (Multi Utility Vehicles & Cars), Fixed ROI Basis' as 'Rate of Interest (Diminishing) i.e. Effective ROI, NEW: Range Between 8.00% to 18.00%; USED/PRE OWNED: Range Between 10.00% to 21.00%' (figures marked as maximums). Detailed vehicle loan rate PDF linked from the page: https://www.indusind.bank.in/content/dam/regulatoryDisclosure/others/Interest%20Rate%20on%20Advances/IRR-Q2-FY-26-27.pdf
EMI at IndusInd Bank's published rates
| Loan amount | 5 years | 7 years |
|---|---|---|
| ₹5 lakh | ₹10,374 interest ₹1,22,440 | ₹8,039 interest ₹1,75,276 |
| ₹10 lakh | ₹20,749 interest ₹2,44,940 | ₹16,079 interest ₹3,50,636 |
| ₹15 lakh | ₹31,123 interest ₹3,67,380 | ₹24,118 interest ₹5,25,912 |
| Loan amount | 5 years | 7 years |
|---|---|---|
| ₹5 lakh | ₹12,686 interest ₹2,61,160 | ₹10,497 interest ₹3,81,748 |
| ₹10 lakh | ₹25,372 interest ₹5,22,320 | ₹20,994 interest ₹7,63,496 |
| ₹15 lakh | ₹38,058 interest ₹7,83,480 | ₹31,492 interest ₹11,45,328 |
Reducing-balance EMI on the loan amount alone. Processing fee, insurance and registration are paid separately.
Fees and charges, worked on a ₹10 lakh loan
The expensive part. For loans disbursed from 1 April 2024 the processing charge is a maximum of 3.00% on new and used Passenger Vehicles, the documentation charge 1.50%, both non-refundable, GST extra, stamping at your state's rate. Our processing fee guide lines up every lender.
| Charge | Schedule | On ₹10 lakh |
|---|---|---|
| Processing charge | Up to 3.00% of the loan | ₹30,000 (3% of 10,00,000) |
| Documentation charge | 1.50% of the loan | ₹15,000 (1.5% of 10,00,000) |
| Total before GST and stamp duty | 4.5% (3 plus 1.5) | ₹45,000 (30,000 plus 15,000) |
Closing early
Preclosure costs 5.00% of the principal outstanding plus GST: ₹50,000 on the full ₹10 lakh (5% of 10,00,000). No separate part-prepayment charge is listed, so ask before paying in a lump sum.
Other charges
- Cancellation or rebooking ₹1,500; a changed repayment mandate or duplicate NOC ₹500 each.
- Late payment: a penal charge of 2.00% per month on the overdue amount, which RBI rules allow only as a separate fee, not a higher rate.
IndusInd Bank car loan fees and charges
| Processing fee | Loan Processing Charges (Non Refundable), Passenger Vehicles (Multi Utility Vehicles & Cars): NEW : 3.00%, USED : 3.00% (maximum percentage; Goods and Service Tax as applicable extra) |
|---|---|
| Prepayment and foreclosure | Preclosure Charges (of principal loan outstanding): 5.00% for Passenger Vehicles (3.00% for the commercial vehicle and equipment columns). Note 7: No pre-closure charges for loan amount up to Rs. 50 Lakhs to Micro & Small Enterprises for vehicles used for business purpose with valid URC as on sanction date; this waiver is not applicable to vehicles used for farming or for personal use. Part-prepayment charges are not separately listed. |
| Documentation Charges (Non Refundable), Passenger Vehicles | NEW : 1.50%, USED : 1.50% |
| Stamping Charges (Non Refundable) | Applicable as per the respective State's Stamp Act |
| Loan Cancellation / Re booking Charges | Rs. 1500 per case |
| Collection Charges (local), return related / non bounce related instance | Rs. 250 per instance |
| Cash Collection Charges | Upto 1% of cash collected subject to a minimum Rs.100/- |
| Swap Charges (change / replacement of repayment mode instructions) | Rs. 500 per instance |
| Duplicate NOC Issuance Charges | Rs. 500 per Loan / per instance |
| Penal Charges for Financial Overdues, Passenger Vehicles | 2.00% Per Month (% on no. of days overdue) |
| Repayment Dishonour Charges (Cheque/SI/ACH), Passenger Vehicles | Rs. 750 + Bank charges on actuals |
| No repayment mandate / invalid mandate, visit to customer premises | Rs. 300 per instance |
| Non Submission of Invoice | Rs. 300/- per month or part thereof for delays post invoicing of over 90 days |
| Non Submission of RC with Hypothecation / name transfer | Rs. 300/- per month or part thereof for delays post invoicing of over 90 days |
| Non Submission of latest Insurance Policy | Rs. 300/- per month or part thereof for delays over 90 days / every annual renewal due date |
| Statement of a/c charges | Rs. 200+GST per additional statement (latest statement free once a year from base branch) |
| Foreclosure Statement Charges | free for 1 time, then Rs.200+GST |
| CIBIL / Other CIB CIR Charges | Rs.50+GST for Individual & Rs. 500+GST for Non-Individual |
| NOC to RTO (conversion of fuel, personal/commercial registration, miscellaneous NOCs) | upto Rs.2000+GST (per NOC) |
| Legal / repossession / incidental, vehicle registration and hypothecation verification, RTO registration, asset valuation | At Actuals |
| Note | Document title: 'Schedule of charges(SOC) applicable for all loans disbursed from 01.04.2024, Effective from 01.04.2024, Consumer Finance Division (CFD)'. It is linked from both car loan pages ('Download Schedule of Charges') and from the schedule-of-charges page as 'Schedule of Charges - CFD'. Figures above are from the 'Passenger Vehicles (Multi Utility Vehicles & Cars) (Fixed ROI Basis)' column; percentages marked with the bank's 'denotes maximum percentage / maximum amount' symbol. GST as applicable is charged over and above all charges. |
Eligibility and documents
Three kinds of individual qualify, including the self-employed with no income proof.
- Salaried: 23 to 60 years, at least ₹2.5 lakh a year, 3 years of work with 1 in the current job.
- Self-employed with ITR: 23 to 65 years, ₹3 lakh a year on the latest return, 3 years in business.
- Self-employed without income proof: 3 years of business stability and an owned residence.
Everyone needs a credit score "above 600".
Funding goes up to 100% of the car value on a new car, insurance and registration included. No loan minimum or maximum is published. Tenure is printed two ways: "up-to 60 months" and, in the FAQ, "1-5 years, in some cases up to 7 years"; used cars get "up to 84 months" against "1 to 4 years, extendable to 5".
No document checklist is printed; keep KYC, income proof, bank statements and the dealer's quotation ready. Not published: a loan cap, score bands, and whether 100% means ex-showroom or on-road price.
IndusInd Bank car loan eligibility and limits
| Who can apply | Salaried individuals; Self-employed with ITR; Self-employed without income proof (3 years business stability, own residence; agricultural variant needs Form J / Patta copy for at least 3 acres); commercial use (FTU) applicants with at least 3 years valid driving licence with badge and a mandatory guarantor. Used car page: 'Salaried Individuals' and 'Self Employed Individuals'. |
|---|---|
| Age | Salaried: 23 to 60 years; Self-employed (with or without ITR): 23 to 65 years; commercial use: 25 to 60 years. Used car page: minimum 23 years (second set 25 years), maximum at retirement age. |
| Income | Salaried: minimum income of ₹2.5 Lakhs per annum (3 years employment stability, 1 year in current employment; residence stability 2 years in city and 1 year in current residence, or none if the applicant owns the house). Self-employed with ITR: ₹3 Lakhs per annum as per latest ITR (3 years business stability). Used car page: 2.5 lakhs per annum, 1 year in current employment. |
| Loan amount | Not published by the lender |
| Tenure | New car: 'up-to 60 months' in the benefits section; FAQ: 'ranging from 1-5 years. In some cases, it can be extended up to 7 years.' Used car: 'up to 84 months* based on credit score and eligibility'. Moratorium for 30 days applied. |
| Funding | up-to 100%* finance on new car loans (FAQ: 'up to 100%* of the car value', insurance and registration can also be financed; offers 'might vary depending on factors such as vehicle cost & credit parameters'; the page does not say whether car value means ex-showroom or on-road price) |
How to apply for an IndusInd Bank car loan
Two doors, no fast lane. Online, the Apply Now button on the bank's car loan pages opens the form. Offline, a branch or the dealer's finance desk takes the same application. The bank names no instant or pre-approved car loan and prints no sanction time. Not shortlisted yet? Start at the car loan hub.
Read the Key Facts Statement first
With no published rate, the KFS is your price tag; it must be given before signing and stays valid for three working days. Check the rate type (fixed), the APR, which must include the 3% processing and 1.5% documentation charges, the 5% preclosure charge and the 2% monthly penal charge. Anything left out can't be charged later.
How to choose the right car loan
Compare APR with APR across two or three lenders, never floor with floor. Fix the tenure first: up to 3 years meets the MCLR floor. If you might prepay, a floating loan with no exit charge can beat a fixed one carrying 5%. The common mistakes: reading "competitive rates" as a quote, and setting IndusInd's 8.98% beside another bank's advertised floor, when one is history and the other an offer.
Apply on IndusInd Bank's siteOpens the lender's own page. BankCreds is not a lender and takes no part in the application.
Who it suits, and how it compares
Of the 30 lenders we track, IndusInd's 8.98% floor is the 23rd lowest, above the 8.5% median, and its 17.96% top is the highest ceiling any of them discloses. It suits an existing customer quoted a rate near the bottom of the band who wants a fixed EMI, a buyer who needs the whole car value financed, or a self-employed applicant with no ITR. Look elsewhere if you want the price before applying, expect to prepay, or want an electric car concession.
Against IDFC FIRST Bank, Karur Vysya Bank and RBL Bank
IDFC FIRST Bank publishes 8.99% to 11.50% p.a., fixed or floating, up to 10 years and ₹2 crore; its ceiling sits 6.46 points under IndusInd's (17.96 less 11.50), and a floating borrower pays nothing to foreclose.
Karur Vysya Bank is the opposite shape: a floating Digital Four Wheeler Loan at 9.00% to 9.05%, no exit charge, a ₹3,000 processing fee up to ₹10 lakh, but a 10% margin and a guarantor.
RBL Bank is the closest match: it also prints no offer rate and disclosed 9.00% to 10.00% in the same quarter, mean 9.40%, a band 1 point wide against IndusInd's 8.98 points (17.96 less 8.98). Its new-car processing fee is 0.5%; preclosure is 6% in the first 12 months, 5% to 36, then nil.
Pros
- 8.98% to 17.96% is what borrowers actually paid last quarter, not a marketing floor.
- Fixed rate on every car loan: the EMI never moves with the repo rate.
- Up to 100% of the car value, insurance and registration included.
- A route for the self-employed without income proof.
Cons
- No offer rate, grid or score band on any product page.
- Processing 3% plus documentation 1.5% of the loan, before GST.
- Preclosure at 5% of the outstanding; part-prepayment terms unlisted.
- Highest disclosed ceiling of the 30 lenders we track; no electric car scheme.
IndusInd Bank against IDFC FIRST Bank and Karur Vysya Bank and RBL Bank
| What | IndusInd Bank | IDFC FIRST Bank | Karur Vysya Bank | RBL Bank |
|---|---|---|---|---|
| New car rate | 8.98% to 17.96% p.a. | 8.99% to 11.5% p.a. | 9% to 9.05% p.a. | 9% to 10% p.a. |
| Who gets the lowest rate | Lowest rate actually charged on new car loans in July to September 2026, as the bank's RBI rate-range disclosure reports it; the bank publishes no offer rate or grid | Risk-based pricing: 'Factors such as your credit profile, income, repayment capacity, borrowing choices, and the bank's internal credit assessment help determine the applicable vehicle loan interest rates.' 'Interest rates are subject to revision from time to time, and the applicable rate depends on your eligibility, loan amount, and IDFC FIRST Bank's internal assessment. It is communicated in the loan offer once your car loan application is approved.' | Digital Four Wheeler Loan (no borrower condition printed) | Lowest rate actually charged on new car loans in July to September 2026, as the bank's RBI rate-range disclosure reports it; the bank publishes no offer rate or grid |
| Used car rate | 10.2% to 21% p.a. | from 11.99% p.a. | 9.95% to 12.45% p.a. | 12% to 15% p.a. |
| Electric car rate | Not stated | Not stated | Not stated | Not stated |
| Rate basis | Fixed | Fixed or floating | Floating | Not stated |
| Maximum tenure | Up to 7 years | Up to 10 years | Up to 7 years | Not published by the lender |
| Funding | Up to 100% of on-road price | Up to 100% of on-road price | Up to 90% | Not published by the lender |
| Processing fee | 3.00% | Up to 5% of loan | By loan amount | 0.5 % |
| Prepayment | Preclosure Charges (of principal loan outstanding): 5.00% for Passenger Vehicles... | Foreclosure / Prepayment charges: 5% of principle outstanding amount if booked on Fixed ROI (+GST) | Foreclosure charges / part pre-payment penalties will not be levied on retail term loans sanctioned under floating rate... | New / Used and Loan Against Car Loan: Pre-closure / Partial Pre-Closure Charges upto 12 months from date of... |
| Read on | 9 November 2026 | 9 November 2026 | 9 November 2026 | 9 November 2026 |
Frequently asked questions
What is the IndusInd Bank car loan interest rate in November 2026?
Is there an IndusInd Bank car loan EMI calculator?
What is the IndusInd Bank car loan eligibility?
What is the IndusInd Bank car loan processing fee?
How do I apply for an IndusInd Bank car loan?
What is the IndusInd Bank used car loan interest rate?
Is the IndusInd Bank car loan fixed or floating?
Can I prepay or foreclose an IndusInd Bank car loan?
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- IDFC FIRST Bank Car Loan Interest Rate November 2026: 8.99% to 11.50% IDFC FIRST Bank car loans run 8.99% to 11.50% p.a., fixed or floating, up to 10 years and ₹2 crore
- Karur Vysya Bank Car Loan Interest Rate November 2026: 9% to 9.05% Karur Vysya Bank's car loan costs 9% to 9.05% p.a
- RBL Bank Car Loan Interest Rate November 2026: What Borrowers Paid RBL Bank prints no car loan rate
Disclaimer. Car loan rates are indicative and subject to change. The final rate depends on the lender's assessment of your profile and the car. Last verified on 9 November 2026. BankCreds is not a lender.
Sources
- IndusInd Bank: IndusInd Bank, Interest Rates (Vehicle Loan Interest Rates for individuals, Bank Rate Q2 2026-2027)
- IDFC FIRST Bank: IDFC FIRST Bank, Car Loan Interest Rates Starting at 8.99% p.a.* - Car Loan Interest Rates by IDFC FIRST Bank
- Karur Vysya Bank: Karur Vysya Bank, Personal Banking Rates
- RBL Bank: RBL Bank, Pricing Range - Car Loans (Rate Range & Mean Rates for Loans to Individuals for the quarter July 2026 – September 2026)
Last verified: 9 November 2026
Written by Anjali Bhargawa, reviewed by BankCreds Financial Experts
BankCreds does not sell cards or take applications. Fees and rewards change; the bank's own terms on the day you apply are what count, and approval is the bank's decision.