Top 5 Cheapest Car Loan Interest Rates 2016


Car Loan Interest Rates 2016: Are you planning to buy your first car? Now a days buying a car is so easy with the help of a car loan, that you can easily manage the expenses by paying regular monthly car loan EMI. Even if you dream for a luxurious car, it is possible with the help f a car loan.

While looking for an Auto loan for your first car or car loan for used car, check out carefully the interest rates and pre-closure terms & conditions. Personally, I took car loan from SBI with quite a good interest rate few years back when I bought my Honda Brio hatchback in India. Although I have closed the car loan after 1 year duration.

Remember one thing, I tried to transfer my SBI car loan to another state when I have transferred, but they did not allow due to some terms and for that reason I have close my SBI car loan. So, ask your bank about the car loan transfer and pre-closure rules properly before applying for a car loan in India.

Top 5 Cheapest Car Loan Interest Rates 2016

Here I have selected few banks with their car loan interest rates in 2016. Just check out the latest car loan interest rate just by visiting the bank website. The data might get changed or updated.

Name of the providerInterest Rate
HDFC Bank9.35% – 11.60%
ICICI Bank9.50% – 10.75%
Punjab National Bank9.65% – 10%
State Bank of India9.7%  – 9.75%
Allahabad Bank9.85%

Any kind f loan is a big liability and in case you have cash, try to pay as much as down payment to reduce the interest burden. In case you have any query or doubt about car loan application process in India or any thing else, you can write a comment below. I will try my level best to answer your queries as per my experience.


  1. Hi Santanu, My employer has not given me option for taking car loan and for tax saving purpose. Is it there discreetion or can i ask for it to be included in the package.

    • I think it’s totally depending upon your company’s policy and as per your offer letter salary break up only. If you find it different then you should contact your HR persons.