Planning to buy a new car this year? Whether it’s your first vehicle or an upgrade, the right financing can make a big difference. In 2025, Indian banks are offering some of the most competitive car loan deals we’ve seen in years — combining low interest rates, flexible tenures, and customer-friendly features.
Let’s explore the top 5 car loan schemes in India for 2025, ideal for anyone looking for the best car loan India 2025 with the lowest car EMI rate.
1. State Bank of India (SBI) Car Loan
SBI remains a top choice for car buyers, thanks to its trusted service and attractive loan features.
Key Features:
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Interest Rate: Starting from 8.75% p.a.
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Loan Tenure: Up to 7 years
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Loan Amount: Up to 90% of on-road price
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Processing Fee: ₹0 to ₹5,000
Why Consider SBI?
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Minimal documentation process
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Zero prepayment charges
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Pre-approved loans for select customers
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Reliable bank car finance option backed by a nationalized bank
Quick Snapshot:
| Feature | Details |
|---|---|
| Interest Rate | From 8.75% p.a. |
| Max Tenure | 7 years |
| Loan-to-Value | Up to 90% of on-road price |
| Processing Fee | ₹0 to ₹5,000 |
2. HDFC Bank Car Loan
HDFC Bank offers a fast and flexible loan process, ideal for salaried and self-employed individuals.
Key Features:
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Interest Rate: Starts at 8.60% p.a.
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Loan Tenure: Up to 8 years
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Loan Amount: Up to 100% of ex-showroom price
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Approval: Instant in many cases
Why Choose HDFC?
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Tailor-made EMI options
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Low paperwork
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Discounts and special deals for HDFC account holders
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Strong contender for the best car loan India 2025
Quick Snapshot:
| Feature | Details |
|---|---|
| Interest Rate | From 8.60% p.a. |
| Max Tenure | 8 years |
| Loan-to-Value | 100% of ex-showroom price |
| Processing Time | As fast as 30 minutes |
3. ICICI Bank Car Loan
ICICI Bank is a leader in bank car finance, offering one of the lowest car EMI rate plans in the market.
Key Features:
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Interest Rate: From 8.70% p.a.
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Loan Tenure: Up to 7 years
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Loan Amount: Up to 100% of ex-showroom price
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Processing Fee: ₹3,500 to ₹5,000
Why ICICI?
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Transparent charges and flexible repayment
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Online loan management
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Special schemes for women applicants
Quick Snapshot:
| Feature | Details |
|---|---|
| Interest Rate | From 8.70% p.a. |
| Max Tenure | 7 years |
| Loan-to-Value | Up to 100% |
| Processing Fee | ₹3,500 – ₹5,000 |
4. Axis Bank Car Loan
Axis Bank stands out with its quick disbursal process and competitive loan features.
Key Features:
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Interest Rate: Starting from 8.75% p.a.
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Tenure: Up to 7 years
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Funding: Up to 100% of ex-showroom price
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Prepayment Charges: 5% (after 1st EMI)
Why Axis Bank?
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Digital loan tracking and online statements
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Affordable EMIs for both new and used cars
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Offers among the lowest car EMI rate options for salaried professionals
Quick Snapshot:
| Feature | Details |
|---|---|
| Interest Rate | From 8.75% p.a. |
| Max Tenure | 7 years |
| Loan-to-Value | Up to 100% |
| Prepayment Fee | 5% after 1st EMI |
5. Punjab National Bank (PNB) Car Loan
A reliable option among public-sector banks, PNB offers stable bank car finance plans with favorable terms.
Key Features:
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Interest Rate: From 8.65% p.a.
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Loan Tenure: Up to 7 years
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Loan Coverage: Up to 85% of on-road price
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Processing Charges: As applicable by branch
Why Go with PNB?
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Public bank trust and reliability
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Subsidized rates for women and government employees
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One of the best car loan India 2025 schemes for long-term buyers
Quick Snapshot:
| Feature | Details |
|---|---|
| Interest Rate | From 8.65% p.a. |
| Max Tenure | 7 years |
| Loan-to-Value | Up to 85% of on-road price |
| Processing Fee | Varies by branch |
FAQs
1. Which bank offers the lowest car EMI rate in India for 2025?
HDFC and ICICI Banks are offering some of the lowest car EMI rate plans in 2025, starting as low as 8.60% p.a. depending on the applicant’s profile.
2. What are the eligibility criteria for applying for a car loan?
Typically, you need to be aged 21–65, have a stable income (salaried or self-employed), and a minimum credit score of 700+. Documents like ID proof, income proof, and address proof are required.
3. Can I prepay my car loan without penalties?
Yes, some banks like SBI and ICICI offer zero or minimal prepayment charges, while others may apply a small fee after a few EMIs are paid.
4. Is it better to choose a public or private bank for car finance?
Both have pros. Public banks like SBI and PNB offer stability and slightly lower rates, while private banks like HDFC and ICICI provide quicker processing and better digital experiences.
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