Possibly every Indian’s desire is to own a car. Everybody wants to possess a car, whether it’s a sports car, sedan, or luxury vehicle. Despite the high cost of car ownership, auto loans have greatly reduced the barrier to entry. Nowadays, practically all of the top Indian banks provide auto loans with affordable interest rates. Even the process of getting a car loan approved is no longer difficult.
Numerous institutions offer hundreds of various types of auto loans. Therefore, you don’t need to seek any farther if you intend to purchase a car soon and are looking for the best auto loans in India in 2025, as we have you covered on our site. Selecting the type of vehicle you wish to purchase or lease is the first step.
Best Bank For Car Loan In India 2025
Bank Name
Best Car Loan Interest Rate
Processing Fee
SBI Car Loan
7.20% p.a. onwards
Starting from 0.40% of the Loan
Federal Bank Car Loan
8.50% p.a. onwards
As per terms and conditions
Canara Bank Car Loan
7.30% p.a. onwards
0.25% of the loan amount, subject to a minimum of Rs.1,000 and a maximum of Rs.5,000
Bank of Baroda Car Loan
7.00% p.a. onwards
Rs.1,500
Axis Bank Car Loan
7.45% p.a. onwards
Minimum: Rs.3,500, Maximum of Rs.7,000
Things to Take Into Account When Applying for the Best Auto Loan
Interest Rates and Other Charges
Let’s say you intend to obtain a bank loan for a vehicle. In that scenario, it is essential to comprehend the loan sanctioning process, the relevant interest rate, and any additional fees. Since these factors have the power to make or break your decision to take out this loan with them, you should be aware of them before agreeing to the terms.
Terms and Conditions
If you are looking for a car loan, there are a few things you need to keep in mind. For example, if you are planning to avail of a loan from your bank or any other financial institution, make sure that you check their terms and conditions. You can do this either online or by contacting them.
Credit Score/ Cibil Score
Additionally, you should make sure that your credit score is excellent and your credit history is clear. Banks would find it challenging to grant you a loan if your credit history includes any defaults or bankruptcy.
Best Banks For Car Loans India 2025: Overview (SBI,Federal,Canara,Bank of Baroda,Axis)
1) Axis Bank
The banking and financial services firm Axis Bank Limited (the Bank) is situated in India. Treasury, Retail Banking, and Corporate/Wholesale Banking are the Bank’s business divisions. In addition to offering a central funding unit, the Treasury division consists of investments in corporate and governmental debt, equities and mutual funds, trading activities, derivative trading, and foreign currency operations. Home loans, personal loans, school loans, auto loans, and more are all available from Axis Bank.
2) Bank of Baroda
Throughout India, Bank of Baroda offers banking and financial services. Treasury, Corporate / Wholesale Banking, Retail Banking, and Other Banking Operations are some of its divisions. Additionally, both domestic and foreign operations are included in its geographical section.
It provides personal banking services, such as term deposits, current accounts, and savings accounts. It also offers a variety of digital products, including immediate banking via digital signage systems (DSS), cards, WhatsApp banking, Internet banking, mobile banking, self-service passbook printers, and automated teller machines (ATMs).
3) Canara Bank
Canara Bank Ltd. is an India-based bank. The Bank’s segments include Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations.
The Bank provides personal banking, corporate banking, non-resident Indian banking, Internet banking, and micro, small and medium enterprises (MSME) banking services. Its retail lending operations include education, car, housing, and other personal loans.
4) Federal Bank
Federal Bank Limited (the Bank) is a banking company considered one of the best banks for a car loan. The Bank provides banking and financial services, including retail banking, corporate banking, and treasury operations. Its segments include Treasury, Corporate/Wholesale Banking, and Retail Banking.
Its Treasury segment operations include trading and investments in government securities and corporate debt instruments, equity and mutual funds, derivatives, and foreign exchange operations on the proprietary account and for customers.
Its Corporate/ Wholesale Banking segment consists of lending funds, accepting deposits, and other banking services to corporates, trusts, partnership firms, and statutory bodies. Its Retail banking segment constitutes lending of funds, acceptance of deposits, and other banking services to any legal person, including small business customers.
5) State Bank Of India
State Bank of India is an India-based banking and financial services company. The Company’s segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and Insurance Business. The Treasury segment consists of the entire investment portfolio and trading in foreign exchange and derivative contracts.
The Corporate/Wholesale Banking segment comprises the lending activities of the corporate accounts group, commercial client’s group, and stressed assets resolution group. The Retail Banking segment includes retail branches, primarily personal banking, lending activities to corporate customers, agency businesses and automated teller machines (ATMs).
The State Bank of India also offers the best car loan rates. As a result, it is often a top choice for new car buyers.
