Car Loan April 2026: Compare Bank Interest Rates to Find the Cheapest Deal

Owning a car is a milestone many people work towards, but with prices running into lakhs, it's not always easy to pay upfront. That's where car loans step in, letting buyers spread the cost through manageable EMIs.

If you're planning to take a car loan this month, checking interest rates across banks can make a big difference to your overall cost.

Here's a quick look at what some of India's leading banks are offering in April 2026:

HDFC Bank Car Loan

Interest rates start from 9%, but your final rate depends on factors like credit score and income profile. The processing fee is 0.5% of the loan amount, with a minimum charge of ₹3,500. Additional charges may apply based on the loan terms.

Axis Bank Car Loan

Axis Bank is offering car loans starting at 8.95% interest. The processing fee ranges between ₹3,500 and ₹12,000, depending on the loan size and applicant profile. Rates may vary based on eligibility.

State Bank of India Car Loan

The country's largest public sector bank starts its car loan rates at 8.90%. The processing fee is 1% of the loan amount, capped at ₹10,000. Final rates depend on your creditworthiness.

Bank of Baroda Car Loan

Among the options listed, Bank of Baroda offers one of the lowest starting rates at 7.60%. Processing fees begin at ₹1,500, making it a relatively affordable choice, though rates still vary based on eligibility.

What Should You Keep in Mind?

A lower interest rate can reduce your EMI burden significantly over time, but that's not the only factor. Always check processing fees, hidden charges, and your eligibility before making a decision.

Taking a little time to compare offers now can help you save a substantial amount later, making your dream car not just achievable, but financially smarter too.

Disclaimer: This article is meant for informational purposes only. NewsPoint does not promote or recommend taking loans. Readers are advised to check details with official sources and evaluate their financial situation before making any decision. The information shared here is based on publicly available online data, and interest rates may change. NewsPoint will not be responsible for any decisions made based on this content.