Buying a new car in India in 2026? Whether it's a hatchback at ₹6 lakh or an SUV at ₹30 lakh, understanding your financing options can save you significantly.
Current Interest Rates (March 2026)
- SBI: 8.65–9.5%
- HDFC Bank: 8.75–10.5%
- ICICI Bank: 8.85–11%
- Kotak Mahindra: 8.9–12%
- Bank of Baroda: 8.5–9.25%
LTV & Down Payment
Banks typically finance 80–90% of the on-road price. For a ₹10L car (on-road ₹11.5L), expect to pay ₹1.15–2.3L upfront.
EMI Examples (₹10L, 7 years)
| Rate | Monthly EMI | Total Interest |
|---|---|---|
| 8.65% | ₹15,680 | ₹3.17L |
| 10% | ₹16,601 | ₹3.94L |
How to Get Pre-Approved
Check your bank's app/portal before visiting the showroom. Pre-approval means better negotiation power and faster delivery. Many banks also offer 0% processing fee on pre-approved loans.