Used Car Loan Interest Rates 2026
Current pre-owned car loan rates of banks and NBFCs, what decides your rate, and how rate affects EMI.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Used car loan rates run from 9.45% at PNB to over 15% at the top of SBI’s band and at NBFCs. PSU banks link floating rates to the RBI repo rate (5.25%) through RLLR/RBLR, or to MCLR; private banks and NBFCs mostly lend at fixed rates. Your credit score, income, the car’s age and the loan-to-value decide where you fall in the band.
Rates by lender
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| PNB Used Car LoanPublic sector bank | 9.45% – 10.55% | 0.25% of loan (min ₹1,000, max ₹1,500) + GST | Up to 5 years (60 EMIs) | ₹2,510 | 27 Sep 2026 (aggregator) |
| Indian Bank Pre-owned Car LoanPublic sector bank | 9.55% – 11.65% | As per the bank’s service-charge schedule — ask the branch | Up to 6 years (72 months) | ₹2,515 | 10 Sep 2026 |
| ICICI Bank Pre-owned Car LoanPrivate sector bank | 9.75% onwards | 2% of loan, max ₹20,000 + GST | Up to 7 years | ₹2,524 | Sep 2026 |
| Bank of Baroda Pre-owned Car LoanPublic sector bank | 10.20% – 12.95% | 0.50% of loan + GST (min ₹2,500, max ₹10,000 + GST) | Up to 5 years (car age from invoice + tenure ≤ 96 months) | ₹2,546 | Sep 2026 |
| SBI Pre-owned Car LoanPublic sector bank | 10.45% – 15.60% | 1.50% of loan + GST (min ₹3,000, max ₹10,000 + GST) | Up to 5 years (car age + tenure ≤ 10 years) | ₹2,558 | 16 Sep 2026 |
| Tata Capital Used Car LoanNBFC | 10.49% onwards | Up to 2.95% of loan + GST | 12 – 72 months | ₹2,560 | Sep 2026 |
| HDFC Bank Used Car LoanPrivate sector bank | 11.25% onwards | As per sanction — see the KFS (not published on sources checked) | 12 – 60 months | ₹2,597 | 18 Aug 2026 (aggregator) |
| Sundaram Finance Used Car LoanNBFC | 12.50% onwards | About ₹2,500 (aggregator) | Up to 4 years (48 months) | ₹2,658 | Sep 2026 |
* At the lowest rate for 4 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
What decides your rate
SBI prices by CIC score; Bank of Baroda’s listed band is for CIBIL 701+.
Older cars mean higher risk — shorter tenure and often a higher rate.
Borrowing a smaller share of the value can earn a better rate.
Floating (PNB, BoB, Indian Bank) moves with repo; fixed stays the same but may carry prepayment charges.
Rate effect on EMI
| Rate | EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 10.00% | ₹12,681 | ₹1,08,702 | ₹0 |
| 11.00% | ₹12,923 | ₹1,20,293 | ₹11,591 |
| 12.00% | ₹13,167 | ₹1,32,012 | ₹23,310 |
| 13.00% | ₹13,414 | ₹1,43,860 | ₹35,158 |
| 15.00% | ₹13,915 | ₹1,67,938 | ₹59,236 |
₹5,00,000 for 4 years.
EMI per ₹1 lakh
| Rate | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
|---|---|---|---|---|
| 10.00% | ₹4,614 | ₹3,227 | ₹2,536 | ₹2,125 |
| 11.00% | ₹4,661 | ₹3,274 | ₹2,585 | ₹2,174 |
| 12.00% | ₹4,707 | ₹3,321 | ₹2,633 | ₹2,224 |
| 13.00% | ₹4,754 | ₹3,369 | ₹2,683 | ₹2,275 |
| 15.00% | ₹4,849 | ₹3,467 | ₹2,783 | ₹2,379 |
EMI for every ₹1 lakh borrowed. Multiply by your loan amount in lakh.
Benchmark rates
| Benchmark | Rate | Note |
|---|---|---|
| RBI repo rate | 5.25% | Unchanged at the 5 Aug 2026 policy (neutral stance) |
| SBI EBLR | 7.90% | Repo + 2.65% (effective 15 Dec 2025) |
| SBI 1-year MCLR | 8.70% | Effective 15 Sep 2026 |
| HDFC Bank 1-year MCLR | 8.35% | Effective 7 Sep 2026 |
| PNB 1-year MCLR | 8.80% | Effective 1 Sep 2026 |
| Canara Bank 1-year MCLR | 8.75% | Effective 12 Jun 2026 |
Frequently asked questions
Will my EMI change if RBI changes the repo rate?
Only on floating-rate loans linked to an external benchmark (like PNB’s RLLR or Indian Bank’s RBLR). Fixed-rate loans keep the same EMI for the whole tenure.
Why does Bank of Baroda add 0.05%?
Its published rates assume you take group credit life insurance (GCLI); without it, the rate is 0.05% higher.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.