If you're considering buying a car with a car loan, you should definitely research the interest rates on car loans from both government and non-government banks to avoid any potential losses.

Car Loan Interest Rate 2025: Everyone dreams of owning their own car and enjoying long journeys with family and friends. However, the truth is that buying a car is still a significant decision for most people. Arranging lakhs of rupees at once isn't easy.

Cars cost lakhs, making a car loan a dream come true for many. If you're considering buying a car with a car loan, you should definitely research the interest rates on car loans from government and non-government banks to avoid paying high interest and financial losses.

Car Loan Interest Rates at Private Banks

If you're considering a car loan from a private bank, interest rates may vary. HDFC Bank charges approximately 9.40 percent interest on car loans, while ICICI Bank's interest rate is slightly lower at 9.15 percent.

Car loans are currently available at Axis Bank at 8.75 percent. Meanwhile, if you take a car loan from IDBI Bank, you'll have to pay an interest rate of 8.30 percent. Among private banks, IndusInd Bank has the lowest interest rate, charging 8 percent interest.

Car Loan Interest Rates at Public Sector Banks

If you're planning a car loan from a public sector bank, it's important to understand the interest rates of different banks. Currently, State Bank of India (SBI) charges approximately 8.85 percent interest on car loans. Meanwhile, Canara Bank's interest rate is 8.05 percent. Both Punjab National Bank and Bank of India offer rates around 7.85 percent.

Bank of Baroda offers a car loan rate of 8.15 percent, while Union Bank of India currently offers the lowest interest rate at just 7.80 percent. Before taking out a car loan, be sure to check the interest rates at nearby banks. This will help you make a better choice.