Personal Loans
· Horizon of Assets Editorial Team

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Comparing Car Loans: Best Picks for Indian Borrowers

Find the right car loan to suit your budget and preferences.

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Quick Picks

Best for low rates: HDFC Bank New Car Loan.
Best for fast approval: ICICI Bank Car Loan.
Best for service: Axis Bank Car Loan.

Reviewing car loan options

Low Rate Leaders

For borrowers prioritizing interest rates, these loans offer the most competitive starting APRs. Consider these options if minimizing interest costs is your top priority.

HDFC Bank New Car Loan

The HDFC Bank New Car Loan starts at a competitive 8.15% APR, making it the lowest in this comparison. It's particularly suitable for those who value quick digital processing, with a 30-minute disbursal claim, though the best rates are reserved for strong credit profiles.

Lowest APR

HDFC Bank New Car Loan

8.15%
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While HDFC impresses with low rates, ICICI provides a compelling balance of quick processing and full financing, ideal for those needing immediate access to funds.

Speed and Service

When time and convenience are of the essence, these lenders offer fast approval and additional services that might make them worth the extra cost.

Quick car loan approval

ICICI Bank Car Loan

ICICI Bank stands out with its quick disbursal and up to 100% on-road price financing. This makes it a strong choice for those needing a seamless and swift buying process, though its processing fees are a consideration.

Fastest Approval

ICICI Bank Car Loan

8.4%
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Axis Bank Car Loan

Axis Bank offers a unique doorstep service, combined with competitive rates starting at 8.75% APR. It's a convenient option for car buyers who prefer personalized service, though keep in mind that processing fees apply.

Axis Bank Car Loan

8.75%
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Even with the quick service from ICICI and Axis, some may prefer the traditional reliability and transparency offered by SBI.

Traditional and Transparent

If you're looking for well-established terms and a transparent rate structure, this option might align with your financial strategy.

Reviewing car loan terms

SBI New Car Loan

SBI New Car Loan provides a stable rate range of 8.90% to 9.85% with up to 100% financing. It's ideal for borrowers who appreciate the transparency of a public sector bank, though more documentation is needed compared to app-first lenders.

Editor's Pick

SBI New Car Loan

8.9%
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Choosing the right car loan hinges on your priorities—whether it's the lowest rate, fastest service, or most comprehensive coverage. Consider what aspects are most important to you before making a decision.

Rates and terms shown are representative. Your actual rate depends on your credit profile and circumstances. This is not financial advice — always read the lender's terms before applying.

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● Best for: Salaried individuals or self-employed professionals with a stable income looking to finance a vehicle purchase up to ₹1 crore.

With an APR range of 8.75% to 12.5%, Axis Bank's car loan is a good option for those seeking quick funding and flexible terms. However, applicants should be prepared for the income verification process, which can be stringent.
APR
8.75–12.5%
Amount
₹100k
Term
12–84mo

● Best for: This loan is ideal for both salaried and self-employed individuals looking to finance new or pre-owned vehicles.

ICICI Bank's car loans provide a flexible financing option for buyers looking for competitive rates and quick approval.
APR
8.4–11.5%
Amount
₹100k
Term
12–84mo

● Best for: Individuals with a stable income above ₹3 lakh annually who want to finance a new vehicle purchase.

With competitive fixed rates and a generous loan tenure of up to 84 months, SBI's New Car Loan is appealing for those looking to finance a new vehicle. However, the requirement of a minimum annual income of ₹3 lakh may exclude some potential borrowers.
⚡ Quick disbursement after approval View offer →
APR
8.9–9.85%
Amount
₹100k
Term
12–84mo

● Best for: It's best for salaried individuals or self-employed persons looking for quick disbursement and a range of loan amounts.

HDFC Bank's new car loan options are appealing for those seeking flexible financing.
⚡ Loan disbursal in as little as 30 minutes View offer →
APR
8.15%
Amount
₹100k–₹2.5M
Term
12–84mo

● Best for: Existing HDFC Bank customers wanting quick approval.

Best balance of rates and speed from Indias leading private bank.
APR
9.5–16.5%
Amount
₹25k–₹500k
Term
—

● Best for: Budget-conscious buyers who want the lowest possible interest rate.

Lowest rates from Indias largest public sector bank.
APR
9.8–14.65%
Amount
₹20k–₹300k
Term
—

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