Car Loan Interest Rates November 2026: All Banks Compared

Car loan interest rates in November 2026: the headline numbers

We read every lender's car loan pages on 9 November 2026. Thirty print a new-car rate and fill the rate table above. Five more (Kotak Mahindra Bank, AU Small Finance Bank, Bajaj Finance, Shriram Finance and Sundaram Finance) publish no starting rate: Bajaj Finance and AU Small Finance Bank print only a ceiling, the other three fees and terms alone.

The lowest published floor is 7.70% p.a., printed by two PSU banks: UCO Bank, for individuals with a CIBIL score of 825 and above, and Bank of Maharashtra, for salaried borrowers scoring 800 and above. The median floor across the 30 is 8.50% p.a., so half the table starts at or below that mark. The top figure, IndusInd Bank's 17.96% p.a., is the upper end of a range it actually charged between July and September 2026, not an offer.

Behind these numbers sits the RBI's repo rate, 5.50% since 7 October 2026, when the Monetary Policy Committee raised it by 25 basis points from 5.25%. Most bank car loans float off this benchmark, so the move showed up fast: six lenders (UCO Bank, Indian Overseas Bank, Union Bank of India, Bank of Baroda, Punjab & Sind Bank and Tamilnad Mercantile Bank) carry rate sheets effective 8 October 2026, the next day.

On ₹10 lakh over 5 years, the interest at 8.50% is ₹2,30,992 against ₹2,07,987 at 7.70%, which is ₹23,005 more.

How to read the car loan rate table

A floor is a starting point, not a quote

A "from" rate means no published ceiling, so that cell stays empty. Six lenders do this: HDFC Bank and ICICI Bank (both from 8.40% p.a.), Saraswat Bank (7.80%), Bandhan Bank (8.86%), CSB Bank (9.30%) and Tata Capital (9.49%).

Every floor has a condition

The condition column matters more than the floor. SBI's 8.55% needs a score of 800 and above on a 3 to 5 year term. Canara Bank's 7.75% is for women in its top credit grade borrowing above ₹15 lakh; everyone else starts at 7.80%.

Four lenders print a floor with no condition at all: IDBI Bank, Indian Bank, Federal Bank and Tata Capital. We show them as published, condition not stated. Bank of Baroda prices on CIBIL score with a minimum cut-off of 701 but prints no per-score grid.

Three bands are not offers at all

Yes Bank (8.65% to 11.80%), IndusInd Bank (8.98% to 17.96%) and RBL Bank (9% to 10%) publish no rate card. Their figures are the lowest and highest rates each actually charged on new car loans between July and September 2026, as reported in the RBI rate-range disclosure. A disclosed range tells you what past borrowers paid, not what you will be quoted.

Dates and contradictions

Every row carries the date we read it and, where printed, the lender's effective date; Karnataka Bank, Bandhan Bank and Dhanlaxmi Bank revised on 1 November 2026. Where a lender's own pages disagree, its page here says so. IDFC FIRST Bank's fees page, for example, puts the processing fee at up to 5% of the loan including GST, while its rates page says up to ₹10,000.

How your car loan rate is decided

Credit score

Score is the biggest lever. UCO Bank and Punjab & Sind Bank give their floors only at 825 and above; Bank of Maharashtra, Indian Overseas Bank and SBI at 800 and above; PNB at 750 and above. Below these bands the spread widens, which is how Punjab & Sind Bank can print a 7.85% floor and a 14.30% ceiling. See our CIBIL score for car loan guide.

Income, employer and category

Bank of Maharashtra writes salaried status into its 7.70% floor, and Union Bank of India into its 800 to 824 band. PNB extends its 7.90% floor to women regardless of score, to its PNB PRIDE and Corporate categories, and to existing home loan borrowers. Axis Bank says government employees often get lower car finance rates, though it prints no figure.

Car and tenure

ICICI Bank prices on CIBIL score and car model, and splits by tenure: 8.40% onwards above 36 months, 10.25% onwards below. Bandhan Bank does the same, 8.86% over 3 years and 9.50% for 3 years or less. CSB Bank's 9.30% is for 36 to 60 month loans.

New, used and electric

Used-car money costs more almost everywhere. SBI's used band is 10.60% to 15.75% against 8.55% to 9.50% for a new car; IndusInd Bank's disclosed range runs from 10.20% to 21%. Electric cars go the other way: 13 lenders print an EV rate, the lowest being Punjab & Sind Bank at 7.55% p.a., and HDFC Bank's EV floor of 8.15% sits under its general 8.40%. Our used car loan and electric car loan pages carry the full bands.

Fixed or floating

Four lenders price only on a fixed rate (SBI, Axis Bank, IndusInd Bank and Saraswat Bank), seven only floating, 13 offer both and six don't say. Since 1 October 2019 a bank's new floating-rate retail loans must be priced off an external benchmark, usually the repo rate, and reset at least every three months; NBFCs such as Tata Capital sit outside that rule. Under the RBI's 2025 directions on pre-payment charges, a floating-rate car loan to an individual sanctioned on or after 1 January 2026 carries no foreclosure or part-payment charge. A fixed-rate loan can: Axis Bank charges 5% of principal outstanding plus GST.

PSU banks, private banks and NBFCs in this table

The 30 priced lenders split into 11 public sector banks, 17 private banks, one co-operative bank (Saraswat Bank) and one NBFC (Tata Capital).

PSU banks own the bottom of the table. All 11 start between 7.70% and 8.55%, and four keep even their ceiling under 10% (Indian Overseas Bank, Indian Bank, SBI and Central Bank of India). Fees are small too: Union Bank of India charges a flat ₹2,000 plus GST, and Canara Bank, Central Bank of India, PNB and UCO Bank (on its pre-qualified scheme) have waived processing charges until 31 December 2026.

Private banks spread wider. IDBI Bank undercuts most PSU banks with a 7.75% to 8.90% band; HDFC Bank, ICICI Bank and Federal Bank start between 8.40% and 8.50%. But the ceilings climb: Axis Bank to 11.70%, Dhanlaxmi Bank to 12.85%, and IndusInd Bank's disclosed range to 17.96%. What private banks do offer is tenure: HDFC Bank, Yes Bank and CSB Bank go to 96 months and IDFC FIRST Bank to 120, while every PSU bank stops at 84.

Tata Capital, the only priced NBFC, starts at 9.49%, charges up to 2.95% as processing fee and takes 6% of principal outstanding on foreclosure within 12 months, so it trails every PSU bank on price.

Tips to get the lowest car loan rate

1. Ask for the floor condition in writing. The Key Facts Statement, due before the agreement since 1 October 2024, shows the rate, the APR with every charge included and the repayment schedule, and holds for at least three working days.
2. Pick the tenure band the lender prices lowest (ICICI Bank: 8.40% over 36 months, 10.25% under), then run both on the car loan EMI calculator and compare total cost.
3. Use the schemes that name you. Women get PNB's 7.90% floor regardless of score. Electric buyers get Union Bank of India's 7.75% EV floor with no processing charge, and SBI's 8.45% against 8.55% on its standard scheme.
4. Add up the fee. PNB's 0.25% capped at ₹1,500 and Axis Bank's up to 2% are very different sums on ₹10 lakh: ₹1,500 against up to ₹20,000. See car loan processing fees and charges.
5. Go floating unless you have a reason not to. The EMI can rise with the repo rate, but a floating car loan sanctioned from 1 January 2026 has no pre-payment or foreclosure charge.
6. Compare three lenders, not one. Use the car loan comparison tool, and start from the car loan hub.

How to choose the right car loan

Start with your score; it decides which floors are open to you. Shortlist lenders whose floor condition you actually meet, then work out total cost on your own amount and tenure: EMI times months, less the loan, plus the processing fee and GST.

Check the exit next: if you might close early, a floating rate with the RBI's no-charge rule beats a fixed rate with a 5% foreclosure charge. Then check funding. SBI, HDFC Bank, ICICI Bank, Axis Bank and Bank of Maharashtra go to 100% of on-road price; most other PSU banks stop at 90% and PNB at 85%.

One example: on ₹15 lakh over 7 years, the 7.70% floor means an EMI of ₹23,156 and ₹4,45,084 of interest, while 8.50% means ₹23,755 and ₹4,95,397. That extra ₹50,313 (₹4,95,397 less ₹4,45,084) is what a better score or lender choice is worth.

Common mistakes to avoid

• Reading the floor as your rate. Only the band in the condition column gets it.
• Comparing unlike numbers. Ask each lender for the APR from its Key Facts Statement.
• Ignoring fees, which range from ₹500 at SBI for salaried customers borrowing up to ₹5 lakh to 5% of the loan at IDFC FIRST Bank.
• Stretching the tenure because the EMI looks small. ₹10 lakh at 7.70% costs ₹1,23,134 in interest over 3 years and ₹2,96,722 over 7.
• Applying everywhere at once instead of shortlisting two or three lenders. Our lowest interest rate car loan page ranks them.