Car Loan: These 10 banks are giving the cheapest car loans, EMI and processing fees including full details - Cheapest Car Loan Banks in India 2025 Compare Interest Rates EMI and Processing Charges full details

Car Loan: If you are thinking of buying a new car, then it is important to know the car loan interest rate and charge of different banks. Currently, most banks are giving loans at an interest rate ranging from 7.60% to 14.25%. Let us know which bank is giving the cheapest loan of Rs 5 lakh for 5 years and how much EMI will be made.

1. UCO Bank
UCO Bank is the cheapest option, where the new car loan interest rate starts at 7.60%. EMI is made from 10,043 to 10,685 rupees. The processing fee is fixed at 0.50% i.e. Rs 5,000. The interest rate is low, but the fees may be slightly higher.

2. Canara Bank
Canara Bank gives a car loan from 7.70% and EMI goes from 10,067 to Rs 11,047. The processing fees ranges from 0.25% i.e. 1,000 to 5,000 rupees. The fee is completely waived in the festive offer between July and September 2025, making the loan more cheaper.

3. Bank of Maharashtra
The interest rate of Bank of Maharashtra starts at 7.70%. EMI ranges from 10,067 to 11,122 rupees. The processing fee is 0.25%, which can go up to a maximum of Rs 15,000. Existing customers also get additional rebate in 0.25% interest rate.

4. Punjab & Sindh Bank
This bank gives a loan from 7.75% and EMI goes from 10,078 to Rs 11,699. The processing fees ranges from 0.25% i.e. 1,000 to 15,000 rupees. The special thing is that “PSB Apna Vahan Sugam” scheme gives a discount of up to 50% on processing fees.

5. Indian Bank
Indian Bank’s interest rate also starts at 7.75%. EMI is made from 10,078 to 10,587 rupees. The processing fee is only Rs 1,000. It is a government bank and is considered an affordable option with low charge.

6. Union Bank of India
Union Bank offers interest rate from 7.80% on a new car loan. EMI is made from 10,090 to 10,550 rupees. The processing fee is just Rs 1,000. This is a popular option among customers due to easy process and low EMI.

7. Punjab National Bank (PNB)
The PNB rate starts at 7.85% and EMI ranges from 10,102 to 10,550 rupees. The processing fee is 0.25% of the loan amount, which costs between Rs 1,000 to 1,500. Being a trusted government bank, it is preferred by middle class customers.

8. Bank of India
This bank gives loan at 7.85% interest rate and EMI is made from 10,102 to 11,160 rupees. The processing fees can range from 0.25% i.e. 2,500 to 10,000 rupees. The interest rate is slightly high, but the reliability of the government bank is its advantage.

9. State Bank of India (SBI)
The interest rate of SBI starts at 8.90%. EMI is made from 10,355 to 10,611 rupees. The processing fees are between 750 to 1,500 rupees. Being the largest bank in the country, customers get both trust and easy service.

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10. ICICI Bank
The loan of ICICI Bank starts at 9.10% and EMI moves beyond Rs 10,403. The processing fees are very high, which can be up to 2% of the loan amount. Fast processing and digital approval is its specialty, but the cost may be slightly overshadowed.

Car Loan: These 10 banks are giving the cheapest car loans, EMI and processing fees including full details – Cheapest Car Loan Banks in India 2025 Compare Interest Rates EMI and Processing Charges full details

1. UCO Bank
UCO Bank is the cheapest option, where the new car loan interest rate starts at 7.60%. EMI is made from 10,043 to 10,685 rupees. The processing fee is fixed at 0.50% i.e. Rs 5,000. The interest rate is low, but the fees may be slightly higher.

2. Canara Bank
Canara Bank gives a car loan from 7.70% and EMI goes from 10,067 to Rs 11,047. The processing fees ranges from 0.25% i.e. 1,000 to 5,000 rupees. The fee is completely waived in the festive offer between July and September 2025, making the loan more cheaper.

3. Bank of Maharashtra
The interest rate of Bank of Maharashtra starts at 7.70%. EMI ranges from 10,067 to 11,122 rupees. The processing fee is 0.25%, which can go up to a maximum of Rs 15,000. Existing customers also get additional rebate in 0.25% interest rate.

4. Punjab & Sindh Bank
This bank gives a loan from 7.75% and EMI goes from 10,078 to Rs 11,699. The processing fees ranges from 0.25% i.e. 1,000 to 15,000 rupees. The special thing is that “PSB Apna Vahan Sugam” scheme gives a discount of up to 50% on processing fees.

5. Indian Bank
Indian Bank’s interest rate also starts at 7.75%. EMI is made from 10,078 to 10,587 rupees. The processing fee is only Rs 1,000. It is a government bank and is considered an affordable option with low charge.

6. Union Bank of India
Union Bank offers interest rate from 7.80% on a new car loan. EMI is made from 10,090 to 10,550 rupees. The processing fee is just Rs 1,000. This is a popular option among customers due to easy process and low EMI.

7. Punjab National Bank (PNB)
The PNB rate starts at 7.85% and EMI ranges from 10,102 to 10,550 rupees. The processing fee is 0.25% of the loan amount, which costs between Rs 1,000 to 1,500. Being a trusted government bank, it is preferred by middle class customers.

8. Bank of India
This bank gives loan at 7.85% interest rate and EMI is made from 10,102 to 11,160 rupees. The processing fees can range from 0.25% i.e. 2,500 to 10,000 rupees. The interest rate is slightly high, but the reliability of the government bank is its advantage.

9. State Bank of India (SBI)
The interest rate of SBI starts at 8.90%. EMI is made from 10,355 to 10,611 rupees. The processing fees are between 750 to 1,500 rupees. Being the largest bank in the country, customers get both trust and easy service.

10. ICICI Bank
The loan of ICICI Bank starts at 9.10% and EMI moves beyond Rs 10,403. The processing fees are very high, which can be up to 2% of the loan amount. Fast processing and digital approval is its specialty, but the cost may be slightly overshadowed.

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1. UCO BankUCO Bank is the cheapest option, where the new car loan interest rate starts at 7.60%. EMI is made from 10,043 to 10,685 rupees. The processing fee is fixed at 0.50% i.e. Rs 5,000. The interest rate is low, but the fees may be slightly higher.

2. Canara BankCanara Bank gives a car loan from 7.70% and EMI goes from 10,067 to Rs 11,047. The processing fees ranges from 0.25% i.e. 1,000 to 5,000 rupees. The fee is completely waived in the festive offer between July and September 2025, making the loan more cheaper.

3. Bank of MaharashtraThe interest rate of Bank of Maharashtra starts at 7.70%. EMI ranges from 10,067 to 11,122 rupees. The processing fee is 0.25%, which can go up to a maximum of Rs 15,000. Existing customers also get additional rebate in 0.25% interest rate.

4. Punjab & Sindh BankThis bank gives a loan from 7.75% and EMI goes from 10,078 to Rs 11,699. The processing fees ranges from 0.25% i.e. 1,000 to 15,000 rupees. The special thing is that “PSB Apna Vahan Sugam” scheme gives a discount of up to 50% on processing fees.

5. Indian BankIndian Bank’s interest rate also starts at 7.75%. EMI is made from 10,078 to 10,587 rupees. The processing fee is only Rs 1,000. It is a government bank and is considered an affordable option with low charge.

6. Union Bank of IndiaUnion Bank offers interest rate from 7.80% on a new car loan. EMI is made from 10,090 to 10,550 rupees. The processing fee is just Rs 1,000. This is a popular option among customers due to easy process and low EMI.

7. Punjab National Bank (PNB)The PNB rate starts at 7.85% and EMI ranges from 10,102 to 10,550 rupees. The processing fee is 0.25% of the loan amount, which costs between Rs 1,000 to 1,500. Being a trusted government bank, it is preferred by middle class customers.

8. Bank of IndiaThis bank gives loan at 7.85% interest rate and EMI is made from 10,102 to 11,160 rupees. The processing fees can range from 0.25% i.e. 2,500 to 10,000 rupees. The interest rate is slightly high, but the reliability of the government bank is its advantage.

9. State Bank of India (SBI)The interest rate of SBI starts at 8.90%. EMI is made from 10,355 to 10,611 rupees. The processing fees are between 750 to 1,500 rupees. Being the largest bank in the country, customers get both trust and easy service.

10. ICICI BankThe loan of ICICI Bank starts at 9.10% and EMI moves beyond Rs 10,403. The processing fees are very high, which can be up to 2% of the loan amount. Fast processing and digital approval is its specialty, but the cost may be slightly overshadowed.

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1. UCO Bank
UCO Bank is the cheapest option, where the new car loan interest rate starts at 7.60%. EMI is made from 10,043 to 10,685 rupees. The processing fee is fixed at 0.50% i.e. Rs 5,000. The interest rate is low, but the fees may be slightly higher.

2. Canara Bank
Canara Bank gives a car loan from 7.70% and EMI goes from 10,067 to Rs 11,047. The processing fees ranges from 0.25% i.e. 1,000 to 5,000 rupees. The fee is completely waived in the festive offer between July and September 2025, making the loan more cheaper.

3. Bank of Maharashtra
The interest rate of Bank of Maharashtra starts at 7.70%. EMI ranges from 10,067 to 11,122 rupees. The processing fee is 0.25%, which can go up to a maximum of Rs 15,000. Existing customers also get additional rebate in 0.25% interest rate.

4. Punjab & Sindh Bank
This bank gives a loan from 7.75% and EMI goes from 10,078 to Rs 11,699. The processing fees ranges from 0.25% i.e. 1,000 to 15,000 rupees. The special thing is that “PSB Apna Vahan Sugam” scheme gives a discount of up to 50% on processing fees.

5. Indian Bank
Indian Bank’s interest rate also starts at 7.75%. EMI is made from 10,078 to 10,587 rupees. The processing fee is only Rs 1,000. It is a government bank and is considered an affordable option with low charge.

6. Union Bank of India
Union Bank offers interest rate from 7.80% on a new car loan. EMI is made from 10,090 to 10,550 rupees. The processing fee is just Rs 1,000. This is a popular option among customers due to easy process and low EMI.

7. Punjab National Bank (PNB)
The PNB rate starts at 7.85% and EMI ranges from 10,102 to 10,550 rupees. The processing fee is 0.25% of the loan amount, which costs between Rs 1,000 to 1,500. Being a trusted government bank, it is preferred by middle class customers.

8. Bank of India
This bank gives loan at 7.85% interest rate and EMI is made from 10,102 to 11,160 rupees. The processing fees can range from 0.25% i.e. 2,500 to 10,000 rupees. The interest rate is slightly high, but the reliability of the government bank is its advantage.

9. State Bank of India (SBI)
The interest rate of SBI starts at 8.90%. EMI is made from 10,355 to 10,611 rupees. The processing fees are between 750 to 1,500 rupees. Being the largest bank in the country, customers get both trust and easy service.

10. ICICI Bank
The loan of ICICI Bank starts at 9.10% and EMI moves beyond Rs 10,403. The processing fees are very high, which can be up to 2% of the loan amount. Fast processing and digital approval is its specialty, but the cost may be slightly overshadowed.