Amid the ongoing festive season, one of the key interest driving the consumers is car loan. Individuals are looking for the amount with an appropriate interest rate for their dream car. Prospective car buyers looking to finance their new vehicles may want to compare interest rates offered by banks before signing up for a loan. Both the public and private sector lenders are offering car loans at starting interest rates of around 7.5%-9%, although the final rate depends on the borrower's credit profile and other eligibility criteria. According to BankBazaar's November 2026 comparison, Punjab National Bank (PNB) offers floating-rate car loans starting at 7.60% per annum, while the State Bank of India's (SBI) starting rate is around 8.80% per annum. Bank of Baroda offers car loans at 7.60% onwards under its floating-rate option. PNB charges 0.25% of the loan amount, subject to a minimum of Rs 1,000 and a maximum of Rs 1,500. SBI's processing fee ranges from Rs 500 to Rs 2,000, according to BankBazaar data. HDFC Bank charges up to 0.5% of the loan amount, subject to a minimum of Rs 3,500 and a maximum of Rs 8,000, while ICICI Bank's processing fee can go up to Rs 8,500 For a borrower taking a car loan of Rs 5 lakh for five years, the monthly EMI would be approximately Rs 10,043 at an interest rate of 7.60%. At 8.80%, the EMI would increase to approximately Rs 10,331. Vikas Kumar is Deputy Editor (Business) at Times Now driving coverage across policy, economy and markets. He possesses nearly a decade of experience i... View More