Car Loan Interest Rates — All Banks 2026
| Bank | Interest Rate | Max Tenure | EMI per ₹1 Lakh |
|---|---|---|---|
| SBI Car Loan | 8.85% - 9.85% | 7 years | ₹1,422/mo |
| HDFC Bank | 9.00% - 11.50% | 7 years | ₹1,436/mo |
| ICICI Bank | 9.10% - 11.50% | 7 years | ₹1,443/mo |
| Axis Bank | 9.25% - 13.50% | 7 years | ₹1,454/mo |
| Kotak Mahindra | 7.70% - 16.00% | 7 years | ₹1,328/mo |
| Bank of Baroda | 8.80% - 11.50% | 7 years | ₹1,418/mo |
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Car EMI for Popular Cars — Delhi, Mumbai, Bangalore 2026
| Car | On-Road Price (Delhi) | Loan (80%) | EMI @ 9.5% / 5yr |
|---|---|---|---|
| Maruti Swift | ₹8.5 Lakh | ₹6,80,000 | ₹14,256/month |
| Hyundai i20 | ₹12 Lakh | ₹9,60,000 | ₹20,184/month |
| Tata Nexon | ₹15 Lakh | ₹12,00,000 | ₹25,229/month |
| Honda City | ₹18 Lakh | ₹14,40,000 | ₹30,275/month |
| Hyundai Creta | ₹22 Lakh | ₹17,60,000 | ₹37,003/month |
| Toyota Fortuner | ₹48 Lakh | ₹38,40,000 | ₹80,733/month |
Car Loan in Delhi vs Mumbai vs Bangalore — On-Road Price Difference
On-road price varies by city due to different road tax and registration charges. Delhi has lower road tax (4-10%) vs Mumbai (11-13%) and Karnataka (13-17%). A ₹15 lakh ex-showroom car costs approximately: Delhi = ₹16.5L, Mumbai = ₹17.2L, Bangalore = ₹17.8L on-road. This affects your loan amount!
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Frequently Asked Questions
How much salary needed for ₹10 lakh car loan? +
For ₹10 lakh car loan EMI of ₹21,024/month (9.5%, 5yr), you need minimum monthly income of ₹42,000-50,000 (EMI should be max 40-50% of income). Most banks require 2x the EMI as net monthly salary.
Can I get car loan without down payment in India? +
Some banks offer 100% car financing for customers with 750+ CIBIL score and strong income. However, 100% financing comes with higher interest (0.5-1% extra). Recommended: pay at least 20% down payment to reduce EMI and interest burden.
Is car loan interest tax deductible? +
Car loan interest is NOT tax deductible for personal vehicle. Only if car is used for business — interest can be claimed as business expense. However, electric vehicles (EVs) get up to ₹1.5 lakh tax benefit under Section 80EEB for loan interest.
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📅 Last Updated: June 2026✅ RBI Verified⭐ 4.8/5 · 10,000+ users