Used Car Loan Interest Rate of SBI, ICICI, HDFC, Kotak, Indian Bank Compare

Get upto Rs 5,000/- Cashback*
Terms & Conditions Apply*
Apply Online

Used Car Loan Interest Rates, Calculator Oct 2016 – Car, MUV, SUV

For Eligibility, Scheme Click on Bank Name Interest Rates* Maximum Loan Amount Lowest EMI per Rs. one lakh, Tenure
Andhra Bank 10.25% Fixed 60.00% of on-road price Rs. 2137 for 5 years
Bank of Baroda 10.45% Floating 80.00% Rs. 3248 for 3 years
Bank of India 10.90% Floating 70.00% Rs. 3269 for 3 years
Bank of Maharashtra 10.35% Floating 50.00% Rs. 2142 for 5 years
Central Bank of India 10.60% Floating 75.00% Rs. 2154 for 5 years
Federal Bank 11.15% - 12.50% Fixed 75.00% of depreciated value Rs. 2182 for 5 years
HDFC Bank 14.50% - 17.50% Fixed 80.00% of market value Rs. 2353 for 5 years
ICICI Bank 15.50% Fixed 80.00% of on-road price Rs. 2405 for 5 years
Indian Bank 12.90% Floating 60.00% of market value Rs. 2270 for 5 years
Karnataka Bank 14.45% Floating 60.00% Rs. 3440 for 3 years
Kotak Bank 17.00% - 20.00% Fixed 85.00% Rs. 2485 for 5 years
OBC 12.55% Floating 70.00% of market value Rs. 3348 for 3 years
PNB 11.20% - 11.70% Floating 70.00% of market value Rs. 2184 for 5 years
SBI 13.05% Floating 85.00% Rs. 1822 for 7 years
Tamilnad Mercantile Bank 11.75% - 12.00% Floating 70.00% of market value Rs. 2212 for 5 years
Union Bank of India 12.90% Floating 50.00% Rs. 2270 for 5 years
  • Car loans are available for buying a new car, a used car, an SUV or an MUV.
  • SBI, ICICI, HDFC, Kotak, Bank of Baroda, Indian Bank, Bank of India and IndusInd Bank are among the many car loan options available.
  • Car loan schemes of each bank differ in terms of interest rates and other factors like maximum loan amount, loan tenure, EMI, processing fees and prepayment fees.
  • EMI schemes available include 0 interest scheme, advance EMI scheme, reducing balance scheme, fixed rate scheme, floating rate scheme and zero interest schemes.
  • So, compare the schemes as shown below and then select the one that suits you.

Used Car Loan Eligibility EMI

  • What is the loan amount eligibility based on your income and the car or SUV or MUV model you are planning to buy?
  • What is the EMI amount and loan tenure per Rs. 1 lakh loan amount?
  • Is the EMI payable in advance or at end of month?
  • What are the processing charges payable?
  • Can you make prepayment of the car loan? If yes, are there are charges and restrictions on when and how much you can pay?
You may be wondering why we haven’t listed car loan interest rate in the above list of questions regarding car loan? That’s because many banks and car finance companies quote interest rates in a way so as to make them look low when they are not. They may quote flat rates or advance EMI rates.

Car Loan Queries

  • Ex-showroom price is the price of the car including excise duty but excluding local duties and statutory charges.
  • On road price is the price you pay for the car including the ex-showroom price and cost of registration, insurance, octroi, municipal entry tax, road tax and any accessories. The on road price tends to be 15-25% more than the ex-showroom price and may vary from city to city.
  • Caution - Note that a car loan of 80% of on road price is likely to be more than 95% of ex showroom price.
  • EMI in arrears scheme – this is the standard method of paying EMI where the interest for a month (and principal repayment) is payable at or after the end of the month.
  • Advance EMI scheme – you pay interest and EMI at the beginning of the month. So, each month, you pay interest on amount that you have already repaid to the bank at the beginning of the month.
  • Caution – In case your bank charges EMI in advance, the EMI amount should be about 1% lower than that in case of EMI in arrears. For those interested in more precise figures, EMI per Rs. one lakh loan amount on a 60 month car loan at 10% rate of interest as per EMI in arrears method comes to Rs. 2125 while that as per EMI in advance method comes to Rs. 2107.
  • Zero interest car loan scheme (also called 0% finance scheme) – this is one of those free lunches that actually doesn’t exist. So, beware of schemes that claim to offer zero interest. It is likely that the car company is offering a subvention scheme whereby the interest is paid by it to the bank upfront. Now, you could always ask the car dealer for the same amount as a cash discount. It’s like padding up the price of the car for the interest amount and marketing it under a nice name.
  • Flat rate of interest car loan scheme – in this method, you pay interest on the entire principal amount of car loan till maturity. So, on a Rs. five lakh car loan at 10% for 5 years, you would have to pay back a total of Rs. five lakhs plus interest of Rs. 50,000 a year, that is a sum total of Rs. 750,000. The EMI in this case would be Rs. 12500.
  • Reducing balance car loan scheme - in this method, you pay interest on the amount outstanding each month. With each EMI, the balance principal amount keeps reducing. So, on a Rs. five lakh loan at 10% for 5 years, you would have to pay back a total of Rs. five lakhs plus interest on reducing basis which comes to Rs. 137411 or Rs. 637411 including principal. The EMI in this case would be Rs. 10624, a good 15% less than that for a flat rate scheme.
  • Caution – Never get hoodwinked with the low rate of interest offered on a flat rate scheme. A flat rate of 10% is equal to an interest rate of 18.7% on reducing rate basis on a five year car loan.
*My Finance Care Advisors Pvt. Ltd., or is a bank neutral multi bank platform that helps borrowers and bank customers compare loans and deposits of all banks in India at one place. Information carried at this website is based on perusal of public sources and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not assure as to the correctness of information carried at the website. Lenders/ banks/ other parties may contact us at to provide corrections or updates. We may act as and/ or be associated with channel partners of banks and other sellers of financial products.