Shriram Finance Car Loan Interest Rate November 2026: Used Cars Only

Shriram Finance car loan interest rate: what the 10% means

Shriram prints one headline number for used cars, 'starts at 10% p.a.', with no condition attached. Its interest rate policy sets the fixed lending range for used private vehicles other than two-wheelers at 10% to 36%, so the 36% ceiling is the highest used car rate on our table. Who gets 10%? Shriram does not say.

How it sits against the market

All 30 lenders that publish a new car starting rate sit below 10%: UCO Bank is lowest at 7.7% p.a. for a CIBIL score of 825 and above, and the median floor is 8.5%. On used cars, Canara Bank's 7.75% is the lowest start among 28 lenders; our car loan interest rates table lists them all.

Fixed only, and what that means

A fixed rate means your EMI stays put whatever the RBI does to the repo rate (5.5% since 7 October 2026). The flip side: the RBI's 2025 directions on pre-payment charges, in force since 1 January 2026, bar foreclosure fees only on floating-rate loans to individuals, so a fixed-rate borrower gets no such protection.

We can't show an EMI at Shriram's rate, since it publishes no example and 10% is only a start. For scale, ₹5 lakh over 3 years at the 8.5% median floor is ₹15,784 a month and ₹68,216 of interest; at 10% or more both rise. Try your sanctioned rate in the car loan EMI calculator.

Fees and charges on a Shriram Finance used car loan

The used car Interest and Charges page prints no fee of its own; it points to the interest rate policy, which caps the processing fee for all products at 5% of the loan, plus GST. On the maximum loan of ₹10 lakh that is up to ₹50,000 (5% of ₹10,00,000); the exact figure appears only in your Key Facts Statement. Documentation runs up to ₹3,000 and stamping is at actuals.

Closing early: 4%, a possible lock-in, and 2% more for a takeover

Foreclosure or part-prepayment costs up to 4% of the principal prepaid, so prepaying ₹5 lakh costs up to ₹20,000 (4% of ₹5,00,000). Two twists: Shriram may instead bar any prepayment within 12 months of the first EMI, and it may add 2% if another lender takes the loan over, ₹10,000 more on ₹5 lakh (2% of ₹5,00,000). These are lawful on a fixed-rate loan, but only if your sanction letter, agreement and KFS disclose them.

Late payment and the small print

A missed EMI draws a penal charge of up to 36% p.a. on the overdue amount, kept as a separate fee under the RBI's 2023 penal charges rule, and a bounced cheque costs up to ₹1,000. These are company-wide limits, not a car loan schedule, so your KFS may show less; our car loan processing fee and charges guide lines up other lenders.

Who can apply, and what Shriram leaves unsaid

Salaried Indian residents and self-employed people can apply. You must be at least 21, and the loan must mature by the time you turn 59. Income is judged 'as per the vehicle model, vehicle age and repayment tenure'; no minimum salary is printed.

Work the funding cap backwards: a ₹10 lakh loan at 85% needs a car valued at roughly ₹11.76 lakh (₹10,00,000 divided by 85%). Shriram's pages disagree on the shortest tenure, 12 months on one and 18 on another, so ask.

No document list is printed. Expect KYC, salary slips or tax returns, bank statements, and the seller's quotation with the car's RC and insurance; see our car loan eligibility guide.

How to apply for a Shriram Finance used car loan

Online, start from the official button on this page. Offline, a Shriram branch or a used car dealer that works with Shriram can start the file. Shriram names no instant or pre-approved variant and states no sanction timeline.

Before signing, ask for the Key Facts Statement, which every retail loan has carried since 1 October 2024: valid for three working days, it shows the APR with every fee, the total interest and the 4% prepayment charge. Check that the rate type says fixed and the processing fee is a rupee figure, not 'up to 5%'.

How to choose the right car loan here

Three questions. Does the car get enough funding under the 85% cap and ₹10 lakh ceiling? Does a 48-month term fit your budget? Is the APR, fees included, below a bank's written offer for the same car? If the bank wins, take it.

Common mistakes

• Reading '10% p.a.' as your rate; it is the bottom of a 10% to 36% band.
• Noticing the 5% processing fee cap only after it is deducted from the disbursal.
• Assuming every car loan is now free to foreclose; the RBI ban in force since January 2026 covers floating-rate loans, and Shriram's are fixed.

Who Shriram Finance suits, and how it compares with Tata Capital and HDFC Bank

Shriram suits a buyer of a modest used car who wants a short loan and may not fit a bank's template: uneven income proof, a town where the banks are absent, or a car older than a bank will fund. Look elsewhere if you want a new car, more than ₹10 lakh or 48 months, a loan running past age 59, or hold a score a bank would price well below 10%.

Against Tata Capital and HDFC Bank

Tata Capital, the other NBFC on our table, covers all three car types: new cars from 9.49% p.a., used from 10.49%, electric from 8.75% (indicative). It lends to 84 months and to age 60 (65 if self-employed). Its exit fee bites harder, 6% of the outstanding within 12 months and 5% after, against Shriram's up to 4%; processing is up to 2.95% there against up to 5% here.

HDFC Bank starts used cars at 9.75% p.a. and new at 8.4%, lends to 96 months, caps the processing fee at ₹8,000, and charges 5% of the outstanding to close a loan taken on or after 1 December 2025. On ₹10 lakh the processing fee gap alone is up to ₹42,000 (₹50,000 less ₹8,000).

Shriram wins only on the 4% prepayment rate; its edge is access, not price. Our used car loan guide compares every lender with a used car rate.