What you need to know
Loan-to-value (LTV) is the loan as a percentage of the car’s price. RBI does not cap LTV for car loans, so each bank sets its own: up to 100% of on-road price at SBI, HDFC, ICICI and Axis for select models; 90% at Bank of Baroda (93% digitally); 85% at PNB; and 80% – 90% at Canara depending on loan size.
Funding by bank
| Lender | Funding / loan limit |
|---|---|
| Canara Bank Car Loan | No upper loan limit; up to 90% of price |
| Bank of Baroda Car Loan | Up to 90% of on-road price (bob Digital Car Loan up to 93%) |
| PNB Car Loan | Up to ₹1 crore or 25 × gross monthly salary; 85% funding (90% with manufacturer tie-ups) |
| Union Bank of India Car Loan | No ceiling on loan amount |
| HDFC Bank Car Loan | Up to 100% of on-road price (select vehicles) |
| ICICI Bank Car Loan | Up to 100% of on-road price |
| SBI Car Loan | Up to 100% of on-road price (select models) |
| Axis Bank Car Loan | Up to 100% of on-road price |
RBI does not set a loan-to-value cap for car loans — each bank sets its own margin. Where funding is quoted on on-road price, it can cover road tax, registration and insurance.
Canara Bank margin by loan size
| Loan amount | Margin (your share) |
|---|---|
| Up to ₹10 lakh | 10% |
| ₹10 – 25 lakh | 10% – 15% |
| Above ₹25 lakh | 20% |
Why lower LTV is better
- Smaller loan, lower EMI and interest
- Less risk of negative equity — cars lose value fastest in the first years
- Some banks price better for a larger margin
Frequently asked questions
Is LTV based on ex-showroom or on-road price?
It depends on the bank — check whether “100% funding” refers to on-road or ex-showroom value in the sanction letter.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.