Lowest Car Loan Interest Rate in November 2026: 30 Lenders Ranked
The lowest interest rate car loan published by any lender we track in November 2026 is 7.70% p.a., offered by UCO Bank to individuals scoring 825 or more and by Bank of Maharashtra to salaried borrowers at 800 or more. IDBI Bank, Indian Bank and Canara Bank follow at 7.75% p.a. These are starting rates with conditions attached, not offers; the ranked list above shows all 30 lenders, each floor and who qualifies for it.
Lowest car loan interest rates, ranked by published starting rate
Ranked on the rate each lender publishes as its floor, with the condition the lender attaches to it. Lenders that publish no rate are not ranked.
- 1
UCO Bank PSU bank
from 7.7% p.a.- Published band
- 7.7% to 10.25% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: CIBIL 825 and above, individuals (spread 0.00%, strategic discount -0.60%)
Read on 9 November 2026; the lender's effective date is 8 October 2026.
- 2
Bank of Maharashtra PSU bank
from 7.7% p.a.- Published band
- 7.7% to 12% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this rate: CIBIL score 800 & above, Salaried (RLLR - 0.60%)
Read on 9 November 2026.
- 3
IDBI Bank Private bank
from 7.75% p.a.- Published band
- 7.75% to 8.9% p.a.
- Max tenure
- Up to 7 years
- Funding
- Not published by the lender
Who gets this rate: the lender does not say; expect it to need a high credit score and a salaried profile
Read on 9 November 2026.
- 4
Indian Bank PSU bank
from 7.75% p.a.- Published band
- 7.75% to 9.1% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: the lender does not say; expect it to need a high credit score and a salaried profile
Read on 9 November 2026.
- 5
Canara Bank PSU bank
from 7.75% p.a.- Published band
- 7.75% to 10.95% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90%
Who gets this rate: Women borrowers, CRG-PRIME, sanctioned limit above Rs. 15.00 lakh: 7.75% (other borrowers 7.80%)
Read on 9 November 2026; the lender's effective date is 9 October 2026.
- 6
Saraswat Bank Co-operative bank
from 7.8% p.a.- Published band
- from 7.8% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 95%
Who gets this rate: With income proof (salaried, self-employed, self-employed professionals); *Varies with CIBIL score
Read on 9 November 2026; the lender's effective date is 15 October 2026.
- 7
Indian Overseas Bank PSU bank
from 7.85% p.a.- Published band
- 7.85% to 8.85% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: CIC-1 (CIBIL score 800 and above), individuals, non-electric four-wheeler: RLLR - 0.50
Read on 9 November 2026; the lender's effective date is 8 October 2026.
- 8
Union Bank of India PSU bank
from 7.85% p.a.- Published band
- 7.85% to 10.25% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: New 4-Wheeler, CIC score 825 & above (salaried and non-salaried) and 800 to 824 salaried: EBLR - 0.40% = 7.85%
Read on 9 November 2026; the lender's effective date is 8 October 2026.
- 9
Bank of Baroda PSU bank
from 7.85% p.a.- Published band
- 7.85% to 11.55% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: Rate of interest on car loan is based on CIBIL Bureau score of the applicant/co-applicant. Minimum cut off score is 701. CIBIL Score (-1) will also be considered. (No per-score grid published.)
Read on 9 November 2026; the lender's effective date is 8 October 2026.
- 10
Punjab & Sind Bank PSU bank
from 7.85% p.a.- Published band
- 7.85% to 14.3% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this rate: CIBIL Credit Vision Score 825 & above, PSB Apna Vahan New Four Wheeler
Read on 9 November 2026; the lender's effective date is 8 October 2026.
- 11
Central Bank of India PSU bank
from 7.9% p.a.- Published band
- 7.9% to 9.55% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: Based on CIC Score (score bands not printed)
Read on 9 November 2026.
- 12
PNB PSU bank
from 7.9% p.a.- Published band
- 7.9% to 10.95% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 85% of on-road price
Who gets this rate: Women (Irrespective of CICs Score), PNB PRIDE, Corporate, Insta Vehicle Loan Scheme for existing home loan borrower (New Car Only), Others Individual with CIBIL TU or equivalent 750 & above: RLLR+ BSP-0.45% i.e. 7.90% p.a. (Presently), floating, other than e-vehicle
Read on 9 November 2026.
- 13
Karnataka Bank Private bank
from 8.35% p.a.- Published band
- 8.35% to 11.85% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: New vehicles (Risk Based Interest Rates, linked CIBIL Score) – best risk band; bands not printed
Read on 9 November 2026; the lender's effective date is 1 November 2026.
- 14
HDFC Bank Private bank
from 8.4% p.a.- Published band
- from 8.4% p.a.
- Max tenure
- Up to 8 years
- Funding
- Up to 100% of on-road price
Who gets this rate: Depending on loan amount, tenure & bureau score (no grid; rate set on the borrower's profile)
Read on 9 November 2026.
- 15
ICICI Bank Private bank
from 8.4% p.a.- Published band
- from 8.4% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this rate: New Car Loans more than 36 months: 8.40% onwards based on CIBIL score and car model; New Car loans less than 36 months: 10.25% onwards based on CIBIL score and car segment
Read on 9 November 2026; the lender's effective date is 1 June 2026.
- 16
Federal Bank Private bank
from 8.5% p.a.- Published band
- 8.5% to 10.25% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this rate: the lender does not say; expect it to need a high credit score and a salaried profile
Read on 9 November 2026.
- 17
SBI PSU bank
from 8.55% p.a.- Published band
- 8.55% to 9.5% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this rate: CIC Score 800 & above, term of loan 3-5 years (SBI Car Loan, NRI Car Loan, Assured Car Loan)
Read on 9 November 2026.
- 18
Yes Bank Private bank
from 8.65% p.a.- Published band
- 8.65% to 11.8% p.a.
- Max tenure
- Up to 8 years
- Funding
- Up to 100% of on-road price
Who gets this 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
Read on 9 November 2026.
- 19
J&K Bank Private bank
from 8.7% p.a.- Published band
- 8.7% to 9.2% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: Car Loans (Fresh Cars), For Borrowers Opting for Fixed Rate, Individual(s)/ Firms/ Companies/ other Non-Individual Entities: RLLR + 0.25%
Read on 9 November 2026; the lender's effective date is 10 August 2026.
- 20
City Union Bank Private bank
from 8.7% p.a.- Published band
- 8.7% to 10.2% p.a.
- Max tenure
- Up to 5 years
- Funding
- Up to 90% of on-road price
Who gets this rate: Bureau Score Above 800 (EBLR, no spread)
Read on 9 November 2026; the lender's effective date is 15 October 2026.
- 21
Axis Bank Private bank
from 8.85% p.a.- Published band
- 8.85% to 11.7% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this rate: Spread over MCLR 0.0% - 2.85%; the page says rates depend on 'the loan amount, type of vehicle, your credit history, and more' and 'Government employees often enjoy lower car finance rates'
Read on 9 November 2026.
- 22
Bandhan Bank Private bank
from 8.86% p.a.- Published band
- from 8.86% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: New car with tenure more than 3 years: 'Rates starting from 8.86% p.a (more than 3 years)'; new car up to 3 years starts at 9.50% p.a
Read on 9 November 2026; the lender's effective date is 1 November 2026.
- 23
IndusInd Bank Private bank
from 8.98% p.a.- Published band
- 8.98% to 17.96% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this 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
Read on 9 November 2026.
- 24
IDFC FIRST Bank Private bank
from 8.99% p.a.- Published band
- 8.99% to 11.5% p.a.
- Max tenure
- Up to 10 years
- Funding
- Up to 100% of on-road price
Who gets this rate: 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.'
Read on 9 November 2026.
- 25
Karur Vysya Bank Private bank
from 9% p.a.- Published band
- 9% to 9.05% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90%
Who gets this rate: Digital Four Wheeler Loan (no borrower condition printed)
Read on 9 November 2026; the lender's effective date is 22 October 2026.
- 26
RBL Bank Private bank
from 9% p.a.- Published band
- 9% to 10% p.a.
- Max tenure
- Not published by the lender
- Funding
- Not published by the lender
Who gets this 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
Read on 9 November 2026.
- 27
Dhanlaxmi Bank Private bank
from 9.05% p.a.- Published band
- 9.05% to 12.85% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: AAA rated, Car Loan – Effective Rate
Read on 9 November 2026; the lender's effective date is 1 November 2026.
- 28
CSB Bank Private bank
from 9.3% p.a.- Published band
- from 9.3% p.a.
- Max tenure
- Up to 8 years
- Funding
- Up to 100% of on-road price
Who gets this rate: New Car, tenure >36 - 60 Months: Starting from 9.30%
Read on 9 November 2026.
- 29
Tata Capital NBFC
from 9.49% p.a.- Published band
- from 9.49% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 100% of on-road price
Who gets this rate: the lender does not say; expect it to need a high credit score and a salaried profile
Read on 9 November 2026.
- 30
Tamilnad Mercantile Bank Private bank
from 9.75% p.a.- Published band
- 9.75% to 11.4% p.a.
- Max tenure
- Up to 7 years
- Funding
- Up to 90% of on-road price
Who gets this rate: The Spread on RLLR will vary depending upon the Credit Rating / Credit Score of the borrower
Read on 9 November 2026; the lender's effective date is 8 October 2026.
What the lowest interest rate car loan on this page really means
Every rate here is the floor: the lowest new-car rate a lender prints on its own website, read on 9 November 2026. Each floor carries a condition: a score band, a salary account, a borrower type or a loan size.
Take the two banks at 7.70% p.a. UCO Bank gives it to individuals scoring 825 or more; Bank of Maharashtra to salaried applicants at 800 or more. Below the cut-off you move to a higher slab, in bands that run to 10.25% at UCO Bank and 12% at Bank of Maharashtra.
We rank 30 lenders that publish a new-car rate; five others, Kotak Mahindra Bank among them, print fees but no rate. The median floor is 8.50% p.a., the highest ceiling 17.96% p.a. at IndusInd Bank. Eleven of the twelve floors under 8% are floating or offered both ways; only Saraswat Bank's 7.80% is fixed.
Floating floors sit over the RBI repo rate, 5.50% since 7 October 2026 after a 25 basis point rise. So a floor isn't a promise of what you'll pay. It tells you where to start asking, and what to ask: which slab am I in, and why? Every lender's grid is on the car loan interest rates page.
The five lowest published car loan rates and who gets each
Two lenders tie for first and three for second, so we show five. The condition column is what most rate lists leave out.
| Lender | Floor | Who gets it | Published band |
|---|---|---|---|
| UCO Bank | 7.70% p.a. | Individuals, CIBIL 825 and above | 7.70% to 10.25% |
| Bank of Maharashtra | 7.70% p.a. | Salaried, CIBIL 800 and above | 7.70% to 12% |
| IDBI Bank | 7.75% p.a. | No condition printed | 7.75% to 8.90% |
| Indian Bank | 7.75% p.a. | No condition printed | 7.75% to 9.10% |
| Canara Bank | 7.75% p.a. | Women, CRG-PRIME grade, loan above ₹15 lakh (others 7.80%) | 7.75% to 10.95% |
UCO Bank and Bank of Maharashtra at 7.70%
UCO Bank's floor is its benchmark rate with zero spread and a 0.60% strategic discount, effective 8 October 2026, with funding to 90% of the on-road price and nil prepayment charges.
Bank of Maharashtra prices at RLLR minus 0.60%, but its band stretches to 12%, so a weaker score costs more here. Existing housing loan borrowers fund 100% of the on-road price; others put in 10%.
IDBI Bank, Indian Bank and Canara Bank at 7.75%
IDBI Bank and Indian Bank print no qualifying condition, so treat the floor as a question to ask. IDBI Bank's band is the tightest of the five, 7.75% to 8.90%; Indian Bank's runs to 9.10%.
Canara Bank's 7.75% is for women in its CRG-PRIME grade borrowing above ₹15 lakh; others start at 7.80%, with a full fee waiver from 1 October to 31 December 2026.
Saraswat Bank follows at 7.80% (fixed, with income proof), then four banks at 7.85%. Ten of the twelve under 8% are public sector banks; the first private bank after IDBI Bank is Karnataka Bank at 8.35%, and SBI starts at 8.55% for scores of 800 and above over three to five years.
The cheapest route for a salaried buyer with a good score
Say you're salaried, scoring above 800, and want ₹10 lakh over five years. Where does the published data point?
At 800 or more, three floors open without a special category: Bank of Maharashtra at 7.70%, Indian Overseas Bank at 7.85% (non-electric car) and Union Bank of India at 7.85% (salaried at 800 to 824; anyone at 825 and above). Cross 825 and UCO Bank's 7.70% and Punjab & Sind Bank's 7.85% join in.
IDBI Bank and Indian Bank print no cut-off, so they belong on any shortlist.
What is the gap worth? At 7.70%, ₹10 lakh over 5 years is an EMI of ₹20,133 and interest of ₹2,07,987. At the median 8.50%, the EMI is ₹20,517 and interest ₹2,30,992. So ₹20,517 minus ₹20,133 is ₹384 a month, and ₹2,30,992 minus ₹2,07,987 is ₹23,005 over the loan.
| Loan | Tenure | EMI at 7.70% | EMI at 8.50% | Interest at 7.70% | Interest at 8.50% |
|---|---|---|---|---|---|
| ₹10 lakh | 5 years | ₹20,133 | ₹20,517 | ₹2,07,987 | ₹2,30,992 |
| ₹10 lakh | 7 years | ₹15,437 | ₹15,836 | ₹2,96,722 | ₹3,30,265 |
Special categories cut deeper: PNB's 7.90% for women regardless of score, nil margin at Bank of Maharashtra for its housing loan customers, and ₹500 plus GST processing at Bank of Baroda for government and PSU staff.
None of this is your final quote; each bank checks income, existing EMIs and the car before fixing your slab. Our CIBIL score guide explains how to move up a band first.
Why the lowest floor is not always the cheapest car loan
Four things can make a 7.70% loan dearer than a 7.90% one: the fee, the tenure, fixed versus floating, and the cost of leaving early.
Fees
Fees in the top twelve run from nil to 0.50%. On ₹10 lakh, UCO Bank's STP fee hits its ₹5,000 cap plus GST, while Union Bank of India takes a flat ₹2,000 plus GST. Canara Bank and PNB have waived the fee from 1 October to 31 December 2026, Central Bank of India till 31 December 2026.
Further down the fees climb: HDFC Bank ₹3,500 to ₹8,000, Axis Bank up to 2%, IndusInd Bank 3%. On ₹10 lakh, 2% is ₹20,000, more than four years of the ₹384 monthly saving above. Our fees and charges guide has every line item.
Tenure
At 7.70%, ₹10 lakh costs ₹2,07,987 in interest over 5 years and ₹2,96,722 over 7. That is ₹2,96,722 minus ₹2,07,987, or ₹88,735 more, for an EMI that falls from ₹20,133 to ₹15,437. Most banks stop at 84 months; IDFC FIRST Bank stretches to 120.
Fixed or floating
A floating rate follows the repo rate, raised to 5.50% on 7 October 2026 under a stance the RBI now calls 'calibrated tightening'. Its reset rules make the bank explain at sanction how a benchmark move changes your EMI or tenure, and offer a bigger EMI, a longer term or both at each reset.
Fixed bands sit higher: SBI's 8.55% to 9.50%, Axis Bank's 8.85% to 11.70%, IndusInd Bank's 8.98% to 17.96%.
Leaving early
Under the RBI's 2025 directions on pre-payment charges, a personal floating-rate loan sanctioned from 1 January 2026 can be part-paid or closed free, whatever the source of funds and without a lock-in.
Fixed-rate loans aren't covered: SBI 2% within 24 months, IDBI Bank 3% within 24 months, Axis Bank 5% of principal outstanding, Saraswat Bank up to 3%. HDFC Bank, which doesn't state its rate basis, charges 5% on loans taken from 1 December 2025.
How to negotiate with a written offer in hand
Banks price in slabs, and the slab is negotiable at the edges. A sequence that puts the rules on your side:
- Pull your score first. The cut-offs that matter are 750 (PNB), 800 (Bank of Maharashtra, Indian Overseas Bank, SBI) and 825 (UCO Bank, Punjab & Sind Bank). Each bureau owes you one free full report with score every year.
- Ask for a Key Facts Statement, not a verbal quote, from two or three banks. Every retail loan since 1 October 2024 must come with one; it stays valid for at least three working days and binds the lender if you accept inside that window.
- Compare the APR line, not the headline. The APR must include every charge the lender levies, so a 7.75% headline with a ₹2,500 fee and a 7.85% headline with a full waiver sit closer than they look.
- Ask which slab you were placed in and why, then take the lowest written statement to your preferred bank. The spread over the benchmark is the bank's own call, and a rival offer in writing is what moves it.
- Check the pre-payment line before signing. A foreclosure charge on a floating-rate personal loan runs against the RBI's directions; ask for it to go. A charge not in the statement can't be added later without your explicit consent.
Timing is one more lever: the Canara Bank, PNB and Central Bank of India waivers end on 31 December 2026.
Choosing the right car loan, and the mistakes that cost the most
How to choose
- Shortlist only the floors your score band qualifies for; the ranked table above shows each condition.
- Prefer floating unless you have a reason to lock in; it's free to close early, and a fixed loan usually isn't.
- Check funding: the RBI sets no loan-to-value rule for car loans, so limits are each bank's own, 90% at UCO Bank and 85% at PNB without a dealer tie-up.
- Test your numbers on the car loan EMI calculator, then put two lenders side by side on the compare page.
Common mistakes
- Treating the floor as your rate. UCO Bank's 7.70% needs 825; the band tops out at 10.25%.
- Signing a dealer-desk loan with no bank statement to compare it against.
- Choosing the lowest EMI, which usually means the longest tenure and the most interest.
- Ignoring the exit cost on a fixed loan: 5% on ₹8 lakh outstanding is ₹40,000.
- Assuming PSU always means cheaper: IDBI Bank, a private bank, is in the top five; SBI's floor is 8.55%, for scores of 800 and above.
This page covers personal loans for new cars; used and electric cars have their own pages in the car loan section.
Frequently asked questions
Which bank has the lowest car loan interest rate in November 2026?
What is the cheapest interest rate for a car loan right now?
What is the best interest rate for a car loan for a salaried person?
Should I take a car loan from a PSU bank or a private bank?
Is the lowest car loan rate fixed or floating?
How do I get the lowest car loan interest rate?
Does a higher down payment lower the car loan interest rate?
Is the lowest car loan rate the same for electric cars?
Related car loan pages
- Car Loan in India: Rates, EMI Calculator and Banks (November 2026) Car loan rates from 30 Indian lenders, verified 9 November 2026: floors from 7.70% p.a., who actually gets them, and a...
- Car Loan Interest Rates November 2026: All Banks Compared Car loan interest rates in November 2026 start at 7.70% p.a
- Car Loan Comparison November 2026: Rates, Fees and Terms Side by Side Compare car loans from 30 lenders side by side: floors from 7.70% p.a., fees, tenure and prepayment rules, read on 9...
- Car Loan EMI Calculator: Work Out Your Monthly EMI and Total Interest Work out your car loan EMI from price, down payment, rate and tenure
- Minimum CIBIL Score for a Car Loan: What Each Bank's Grid Asks UCO Bank's 7.70% car loan rate needs a CIBIL score of 825
- Car Loan Processing Fee and Charges: What 30 Lenders Charge in 2026 Car loan processing fees run from nil to 5% of the loan in November 2026
- Used Car Loan Interest Rate November 2026: Second Hand Car Loan Rates Second hand car loan rates from 28 lenders, verified 9 November 2026: Canara Bank starts at 7.75% p.a., most bands...
- EV Car Loan Interest Rate November 2026: Banks With a Green Rate EV car loan rates from 13 lenders, verified 9 November 2026: Punjab & Sind Bank starts at 7.55% p.a., most green...
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
- UCO Bank: UCO Bank, Repo latest (Annexure I Retail: UCO Float linked rates)
- Bank of Maharashtra: Bank of Maharashtra, Retail Interest Rates (Rate of Interest Retail Loans)
- IDBI Bank: IDBI Bank, Interest Rates (Retail Loans: Interest Rate structure for Structured Retail Asset (SRA) Products, Auto Loan; Fixed Rate Loans)
- Indian Bank: Indian Bank, Interest Rates on Personal Segment Loan Products: Floating
- Canara Bank: Canara Bank, Rates of Interest for Retail Lending Schemes linked to RLLR - 2. Canara Vehicle Loan
- Saraswat Bank: Saraswat Co-operative Bank, Interest Rates (Retail Loans)
- Indian Overseas Bank: Indian Overseas Bank, Lending Interest Rates (Retail Credit Interest Rates)
- Union Bank of India: Union Bank of India, Rate of Interest for Retail Lending Schemes w.e.f. 08.10.2026 (Retail Asset Vertical) - 2. Union Vehicle Loan / Union Green Vehicle Loan
- Bank of Baroda: Bank of Baroda, Retail Loans Interest Rates - Baroda Auto Loan (Interest Rate linked to BRLLR / linked to MCLR)
- Punjab & Sind Bank: Punjab & Sind Bank, PSB Prime Lending Rate (EBLR rate of interest tables)
Last verified: 9 November 2026
Written by Pankaj Pandey, 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.